HELENA, Mont. -

State officials say they've resolved a breach of contract issue with Xerox Corp. over developing a new computer program for Medicaid payments.
    
Montana Department of Health and Human Services Director Richard Opper said in a letter to Xerox July 18 the company is no longer in breach of the $70 million state contract awarded in 2012. He says his department has accepted a revised work plan and that they have been encouraged by Xerox's cooperation. If the plan is successfully executed the system should last 20 years.
    
The Medicaid Management and Information System to handle payments to thousands of Medicaid providers is supposed to replace a system that is more than 30 years old. The old system is unable to keep up with increasingly complex payment rules and parameters.