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January 3, 2008

State to outsource MaineCare billing

Maine will outsource management of the MaineCare computer billing system to a Pennsylvania company, costing about 100 state jobs, according to the Associated Press.

The state is expected to complete negotiations later this month with Unisys Corp., which provides similar services to West Virginia, Louisiana and New Jersey. Officials at the Maine Department of Health and Human Services say many of the affected state workers could be hired by Unisys, the AP reported.

Many MaineCare providers were left for months without correct payment, or any payment at all, after the state in January 2005 switched to a new computer system to handle claims for MaineCare, the state's Medicaid program.

In other MaineCare news, a federal audit says Maine overcharged the Medicaid program by $44.2 million in 2002 and 2003. Medicaid is funded with state and federal dollars, and the federal government is asking Maine to pay back $29.7 million for its share of the alleged overbilling, according to the Portland Press Herald. Maine officials say the state calculated the Medicaid charge correctly and will contest the audit, the paper reported.

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