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Health News Florida

IBM Drops Challenge To Deloitte Medicaid Contract

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IBM has withdrawn its challenge to a decision by the state Agency for Health Care Administration to award a major Medicaid contract to Deloitte Consulting.

A notice was filed Tuesday at the state Division of Administrative Hearings that said IBM had voluntarily dropped its protest, but the document did not explain the reasons.

The technology  contract, which is  estimated to be worth $135 million, has drawn scrutiny because AHCA decided to award it to Deloitte this summer amid an uproar - and litigation - about problems with an online unemployment-compensation system that the company helped develop.

IBM and Accenture, which unsuccessfully sought the Medicaid contract, filed separate challenges to AHCA’s decision. Accenture also withdrew its challenge this month.