Foxx rebukes the state for cost overruns

STAFF WRITERS LYNN BONNER AND JOHN FRANK
Published in: Under the Dome

U.S. Rep. Virginia Foxx railed against the state Department of Health and Human Services from the floor of the U.S. House chamber last week, saying it was wasting national taxpayers' money.

The new Medicaid claims system that Computer Sciences Corp. is building for the state is going to cost nearly twice as much as the contracted amount, according to a state audit.

The state awarded a $265 million contract to CSC in 2009.

A state audit last week said total cost overruns would reach $320.3 million, including the cost to keep the current system running during the months that startup of the new system is delayed.

This is an issue for taxpayers nationwide, said Foxx, a Republican from Banner Elk and a former state senator, because the federal government is expected to pay 90 percent of the cost.

"That means that all taxpayers, including North Carolina taxpayers, will be shelling out an extra $200 million to cover for the North Carolina Department of Health and Human Services' incompetence and inability to keep a lid on costs," Foxx said, adding that the department is "flushing $200 million of (taxpayers') money down the toilet."

http://www.newsobserver.com/2011/12/20/v-print/1721606/rep-foxx-rebukes-...