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Xerox Wins State Medicaid Contract


(Bloomberg & WXXI News) -- Xerox has won an estimated $500 million contract to replace New York’s Medicaid management system, the biggest in the U.S.

The five-year computer-services agreement must still be approved by some other state agencies including the state attorney general and the state comptroller, according to Bill Schwarz, a spokesman for the New York Health Department.

Computer Sciences Corp., which runs the current system, didn’t bid.

Xerox was vying against Hewlett-Packard Co. for the deal as they battle for dominance in the market for Medicaid, the joint state-federal health insurance program for the poor.

Jennifer Wasmer, a spokeswoman for Xerox, said in an e-mail that the company doesn’t comment on “pending business opportunities.”

Jonathan Otto, a spokesman for HP, didn’t immediately respond for comment.

Xerox performs Medicaid work for at least 12 states, the District of Columbia and the U.S. Labor Department.

Randy Gorbman is WXXI's director of news and public affairs. Randy manages the day-to-day operations of WXXI News on radio, television, and online.