State Files Complaint Against Medicaid Payment Vendor

The state has filed an administrative complaint alleging unfair or deceptive practices by the vendor it hired to implement a new Medicaid payment system.

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The claim against Xerox State Healthcare LLC was filed with Alaska’s commissioner of Administration. It follows an unsuccessful attempt at mediation.

It seeks compensatory, punitive and other damages and an order requiring a plan from Xerox by Oct. 15 to resolve problems with the system. The state, in its complaint, also reserves the right to go to court.

The system has been plagued by problems since going live last year. The state said the department was aware of problems but believed Xerox assurances that the system was operational and there was a plan to resolve remaining issues.

Xerox did not make anyone available for comment.