Idaho to penalize Medicaid contractor

PIERCE (AP) - An Idaho health official says the state plans to penalize its new Medicaid billing contractor over delays in payments to thousands of service providers.

Regional Health and Welfare Director Ron Beecher said Wednesday that the contract with California-based Molina Healthcare gives the state the option of penalizing the company if it doesn't perform as expected.

Idaho switched to the new Medicaid billing vendor on June 7, just as the state enacted a three-week delay in Medicaid payments so the agency could balance its budget. Providers expected to receive their payments beginning July 1, but the new billing system isn't working smoothly.

The Lewiston Tribune reports that Beecher says Molina officials plan to meet with welfare department officials today.