TennCare ends contract with computer vendor

NASHVILLE, Tenn. (AP) – TennCare says it is ending its contract with computer vendor Northrop Grumman Corp. and will find another company to develop a computer system to determine Medicaid eligibility.

The move comes after months of delays and other problems with the system the company was supposed to develop but that shows little sign of ever working.

TennCare officials said in a statement on Monday that the decision to cut ties with Northrop was based on an audit that found the company consistently missed performance benchmarks and that the system isn’t near completion.

Media reported officials said they would begin the process to hire a new vendor, but didn’t give a timetable on when they would select one.

TennCare has paid Northrop Grumman $4.6 million so far, but most of that is federal dollars.