State gets new contract for Medicaid claims

The state has accepted a $265.2 million bid from a Virginia-based firm to build and operate a system to pay Medicaid claims.

Computer Sciences Corporation, called CSC, was selected over Electronic Data Systems, or EDS, the company that currently pays Medicaid claims. EDS, based in Texas, which bid $287.3 million.

“Both the vendors were competitive,” and both could have done the job, said Angie Sligh, director of the office of Medicaid Management Information Systems for the state Department of Health and Human Services.

The decision to choose CSC came down to price, she said.

The federal government pays 90 percent of the cost. CSC will install the system and operate it for four years, starting in mid-2011, Sligh said.

A CSC spokeswoman would not answer questions before the company issues a formal announcement.

EDS has had the job since 1977. An EDS spokesman did not return telephone calls. The company has until Friday to appeal the decision.