Reston, Va.-based Maximus Inc. started reviewing Medicaid cases in January under a $77 million contract with Illinois. The work resulted in the state removing more than 125,000 people from the program.
A grievance filed by American Federation of State, County and Municipal Employees (AFSCME)said the state didn’t have a good-enough reason to hire an outside contractor to do the work. An arbitrator sided with the union, telling the state to end the Maximus contract Dec. 31, eight months early.
The state has until Wednesday to appeal the arbitrator’s ruling. Illinois has about 2.7 million low-income residents whose health care is paid by the state and federal Medicaid program.