NASHVILLE — It’s back to the drawing board for TennCare officials on a new Medicaid eligibility determination system after the state and contractor Northrop Grumman Corp. agreed to part ways over a troubled $37.5 million system that shows few signs of ever working.
In a statement issued Monday, the TennCare Bureau said that after receiving a detailed report on problems from its consultant, KPMG LLC, “the state and current vendor have mutually decided it to be in their respective best interests to terminate the current contract early.”
“The state will be moving forward with the process to select a new vendor,” the statement adds.
TennCare officials on Monday gave no timetable on selecting another contractor or when it will eventually have a system that was supposed to begin interacting last January with the federal government’s system under the Affordable Care Act.
Gov. Bill Haslam’s administration is already under a federal judge’s order telling the state to address woes faced by would-be TennCare enrollees who’ve spent months unsuccessfully trying to learn the status of their Medicaid applications filed through the federal government’s system.