An article in BusinessWeek.com suggests that UniSys may have West Virginia’s Medicaid program at a financial disadvantage. UniSys designed the system used by West Virginia to process its Medicaid claims, and is the only company trained and certified to use the system. Consequently, West Virginia Department of Health and Human Resources officials may not have had much choice when UniSys negotiated an increase that more than doubled its monthly per-member processing fee, from $2.08 to $5.82.
Some members of the Legislature question whether the relationship is beneficial for West Virginia or whether the DHHR even had the authority to agree to the increase without legislative approval. But the Secretary of DHHR defends the increase, and points out that West Virginia can offset its costs by using its system to process claims from other state departments or other states, although no such agreements have been negotiated to date.