Failed Minnesota Health Software Ends Up in Court

September 4, 2009

Minnesota’s failed effort to develop an electronic system for public health insurance applications has landed in court after six years and more than $30 million spent.

The state is defending a lawsuit from the contractor it fired last year.

ACS State and Local Solutions says it’s owed more than $19 million for partially completed work. The state is seeking damages over the unsuccessful contract. A trial is set for March.

The Department of Human Services shut down the HealthMatch project about six months ago.

Minnesota still remains years away from an electronic eligibility system that would reduce a high rate of errors in determining eligibility and cut waiting times to get on public health programs that cover nearly 700,000 people.

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