Maryland’s attorney general has reached an $81 million settlement with Computer Sciences Corp. after the state said the government contractor failed to develop and implement a Medicaid computer system.
The dispute stems from a $170 million contract award to CSC — now known as DXC Technology (NYSE: DXC), based in Tysons — to replace an IT system in use since 1992 to administer the state’s Medicaid program, including processing about $10 billion paid out annually to Medicaid providers.
The existing system had been blamed for causing six- to 12-month backups in physician reimbursements and didn’t accurately recognize new codes that corresponded to services and care provided to patients.
Maryland Attorney General Brian Frosh had sought $500 million from the former CSC, according to the Baltimore Sun, including a tripling of damages, while the company countered it was still owed money for extra work it had performed. The settlement calls for CSC to pay $81 million to the state.