On Wednesday, the California Department of Health Care Services announced plans to select a different contractor to manage claims processing for Medi-Cal, the state's Medicaid program, the Sacramento Bee reports.
The state said it intends to end its 20 years of contracting with the Hewlett-Packard subsidiary HP Enterprise Services and award a new 10-year, $1.4 billion contract to Dallas-based Affiliated Computer Services.
State officials declined to comment on the reason for switching contractors. They also said they intend to minimize computer system disruptions during any future transitions.
HP Enterprise Services officials said the company is weighing its options. The firm has until Dec. 16 to notify the state if it plans to appeal the decision and until Dec. 21 to justify an appeal (Calvan, Sacramento Bee, 12/10).