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May 19, 2008

Maine outsources MaineCare system

Maine has awarded a Pennsylvania technology services company a $179 million contract to manage the state's Medicaid program.

Unisys, headquartered in Blue Bell, Pa., was awarded the seven-year contract to develop and operate a new computer system that will coordinate claims and customer service functions for MaineCare, the state's Medicaid program, according to a press release from the company.

The state in February 2007 pulled the plug on its failed MaineCare billing system, which cost millions more than the initial price tag, and in January 2008 said it was in negotiations with Unisys to outsource management of the system. Using an outside vendor could cost the state as many as 100 jobs, but state officials told the Associated Press in January that Unisys could hire many of those employees.

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