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Provider Owed $750,000 after Faulty Medicaid Claims Processing Switch

By Mallory Peebles, Crime and Law Enforcement, Natural Resources and Parks Reporter, Fill-in Anchor, mpeebles@ktuu.com
Published On: Jan 24 2014 07:06:35 PM AKST
Updated On: Jan 24 2014 07:20:46 PM AKST

In 2 weeks the company operating the new system will address the house and Senate about progress it's making fixing issues... In the meantime, many healthcare facilities, employees and the people who rely on these services are discussing worst case scenarios. 

PALMER -

For months the state of Alaska has been trying to fix problems with the new Medicaid claims systems, and now some healthcare providers say the issue could cost them their practice. 

Laura Sasseen is the Executive Director at the Mat-Su Activity and Respite Center. She said Friday that "there has to be some sort of resolution to the problem so businesses aren't forced to layoff employees.”

She said employee layoffs are a possibility if providers don’t get the money they’re owed.

Sasseen said she expects about $750,000 from the state in claims that have yet to be paid.

The Enterprise System, operated by Xerox, began accepting Medicaid claims in October 2013. State Health Care Service Director Margaret Brodie said the previous system was 25 years old and needed to be updated.

The Enterprise system cost the state $146 million. Brodie said she did expect some issues with the new system, but not this many.

"The state is doing everything in its power to deal with the issue. We meet with Xerox three times a week," Brodie said.

Last month Brodie said the Xerox crews were working on issues they said would mostly be fixed by January 19. Now she anticipates it will be another four to eight weeks. 

Sasseen said the company’s funds are almost completely drained, and she will barely be able to afford two more months of operations without the Medicaid payments. She employees 125 people. 

"It affects morale, because people are worried," she said. "Employees are worried about what's going to happen? (Asking,) do I still have a job if there's no money coming in?"