Alaska News

Medicaid system case on hold to allow for work on fixes

JUNEAU -- An attorney with the state Department of Law says litigation against a vendor hired to develop and implement a Medicaid payment system was put on hold to allow continued work to resolve major system problems.

Stacie Kraly told the House Finance Committee, meeting in Anchorage, that the state and Xerox plan to meet by July 31 to establish whether the state finds the system acceptable. If it does, the state health department would seek system certification by the federal government.

Problems plagued the payment system after it went live in 2013. But state health officials say significant strides have been made in recent months, and they've expressed confidence the system could handle claims under expanded Medicaid.

Some Republican legislators have expressed continued concerns and cautioned against moving too fast to expand Medicaid.