Xerox has won a $500 million contract from the State of New York to process Medicaid claims. Xerox went head to head against HP for the contract but won out. The state’s existing Medicaid claims system is managed by CSC which was not part of the bid process this time.
CSC maintains an office upstate, and it is unclear if Xerox intends to bring new jobs to New York when it takes on the service. CSC maintain New York’s state-run health insurance exchange marketplace and is expected to continue even after Xerox takes over Medicaid claims. Xerox has built and operates state-run insurance exchanges in a handful of states.
The Xerox contract still requires state officials to finalize the deal. The contract could be contested by CSC which has already said it didn’t have enough time to put together a bid. The total time frame for the bid process was 18 months.
Other states may also see a revamp of their Medicaid systems. The Center for Public Policy Priorities released a new online tool in Texas which allows the public to see how a Medicaid expansion would benefit their county. States were allowed to opt-out of Medicaid expansion under the Obamacare, despite significant federal funding support and downstream impact for low-income individuals seeking insurance in those states.