The Alaska department of health and social services settled a lawsuit with Atlanta-based Xerox State Healthcare over the company's management of the state's Medicaid claims, according to the Alaska Dispatch News.
The complaint, filed in 2014, alleged Xerox failed to issue timely and accurate payments to Alaska healthcare providers for Medicaid services. The state sought $46.7 million in damages. Xerox filed a counter complaint alleging the state still owed the company money for its services.
According to the new settlement agreement, the state agreed to pay the roughly $26 million it owed the company under its previous contract. Xerox agreed to provide additional hours of work for free and agreed to complete performance reports and to provide hardware system upgrades.
As part of the settlement agreement, the two entities agreed to a new contract. The state department will still pay roughly the same amount as the original 10-year contract, or $124.7 million for all 10 years. Each additional year of the three-year extension option to the contract will cost about $15 million, according to the article.