ALBANY—New York State’s decision to award a $550 million Medicaid management contract to Xerox is being challenged by two companies who say the company’s recent history of Medicaid management in other states should disqualify it from running New York’s system.
Hewlett-Packard and Computer Sciences Corp. filed complaints with the state comptroller’s office alleging the contract was improperly awarded.
The state’s Medicaid system is one of the country’s largest and—at a cost of $54 billion per year—one of the most expensive, with more than 5 million enrollees.
New York State issued a request for proposals to build a new Medicaid management system for the state in 2013. Only two companies, Xerox and Hewlett-Packard, bid for the contract.