State, Contractor at Odds Over Digital Upgrade

South Dakota Outline


SIOUX FALLS, S.D. (AP) – State officials and a contractor hired six years ago to work on a new computerized Medicaid management system continue to be at odds over how to resolve differences on the project.

The state signed a $62 million contract in 2008 with Client Network Service Inc. to develop a digital system for the program that pays medical expenses for poor people.

The state ended the contract in 2010 because of a dispute on the timing and quality of the work, but the state and the company have since agreed to resume the project.

But the Argus Leader reports the parties haven’t agreed on a time frame to finish the project.

The federal government is paying 90 percent of the new system’s cost. But some state officials say federal officials have also complicated the project.

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