The following appears on helenair.com

HELENA, Mont. (AP) — State officials have resolved a contract issue with Xerox Corp. over developing a new computer program for Medicaid payments.

Montana Department of Health and Human Services Director Richard Opper sent a letter to Xerox on July 18 saying the company is no longer in breach of the $70 million state contract awarded in 2012.

“It has been a difficult process, but in the past month, we have been encouraged by the cooperation that Xerox has demonstrated,” Opper said in the letter.

His department has accepted a revised work plan, which if successfully executed, should create a system that lasts 20 years, he said.

The Medicaid Management and Information System to handle payments to thousands of Medicaid providers is supposed to replace a system that is more than 30 years old. The old system is unable to keep up with increasingly complex payment rules and parameters.

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