Company Protesting Awarding Of State Medicaid Contract

By
Associated Press

Dateline
Updated Mon, Jan 7, 2013 8:02 am

Xerox is protesting West Virginia officials' decision to award a $248 million computer contract to another company.

Xerox is asking the Department of Health and Human Resources to cancel the contract awarded to Molina Medicaid Solutions.

The contract is for a new computer system to process claims for the state's 420,000 Medicaid recipients. Molina operates the existing system.

Xerox claims a 2011 deal with the state to upgrade the existing system gave Molina an unfair advantage in bidding for the new contract.

Xerox also alleges that the DHHR gave Molina access to its trade secrets.

Molina spokeswoman Sunny Yu said the company can't comment because Xerox's protest is directed at the state.

DHHR spokeswoman Marsha Dadisman said the department is reviewing Xerox's protest.

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