CSC takes on $297M upgrade of Md. Medicaid system

CSC will improve Maryland’s outdating computer system that causes delays and backups but workers could face firings.

Computer Sciences Corp. will help Maryland update its Medicaid management information system with a new computer system that will expedite the processing of tens of millions of dollars worth of Medicaid claims each month thanks to state approval of a new $297 million contract, according to news reports.

The seven-year contract will upgrade a 16-year-old computer system that tracks the state’s Medicaid patients, claims and payments, but which has been blamed for causing six- to 12-month backups in physician reimbursements, The Washington Business Journal said.

Although the new computer system could save the state tens of millions of dollars, it could also result in about 100 state employees losing their jobs, the report noted.

CSC, of Falls Church, Va., ranks No. 11 on Washington Technology’s 2011 Top 100 list of the largest federal government contractors.