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NC health chief works on Medicaid billing systems

Published on NewsOK Modified: January 18, 2013 at 5:27 pm •  Published: January 18, 2013

The department, then under Gov. Beverly Perdue's administration, objected strongly to State Auditor Beth Wood's review, which found at the time the new billing system would exceed initial cost estimates by more than twice the original price tag of $265 million. The department said then the new billing system was paid for mostly by the federal government, the state would recoup its investment share within two years and generate additional cost savings once operational.

The department said Friday new Medicaid policies and rates have accounted for much of the legacy system software changes.

Keeping program changes to an absolute minimum in the coming months "will be critical to enable a more predictable transition and avoid disruption of services to the public," said Susan Young, the project's risk management adviser.

Wos and her boss, new Gov. Pat McCrory, have raised concerns about the state's information technology systems, particularly those for Medicaid, since McCrory took office in January.

In 2004, the state awarded a contract to Affiliated Computer Services to replace the current system, but the contract was terminated in 2006 after delays and additional costs.