Kansas gives Medicaid contractor until June 1 to improve

TOPEKA, Kan. (AP) - The company processing Medicaid applications in Kansas faces fines of up to $250,000 a day and the loss of its state contract because it is out of compliance with its terms.

The Wichita Eagle reports that the state sent Maximus a non-compliance letter Jan. 30 that gives the Virginia-based company until June 1 to fix problems that include only 40 percent accuracy on financial payments. The goal is 98 percent accuracy. Medicaid Director Jon Hamdorf disclosed the action during a meeting of a legislative oversight committee Friday.

If the company fails to shape up, it could face fines retroactive to the beginning of the year and possibly totaling tens of millions of dollars.

Maximus spokeswoman Lisa Miles said the company immediately instituted a compliance plan and is committed to improvement.



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