Groups urge state to avoid Maximus managed care contract

A swath of labor and progressive groups called on the state to avoid choosing a firm with a troubled history as the new health benefit coordinator for New Jersey’s FamilyCare Managed Care Programs.

“We urge New Jersey to reject MAXIMUS, a corporation with a record of providing substandard services on state health contracts and abusing its workers,” the groups, which include the state AFL-CIO, AFSCME New Jersey Council 63 and the New Jersey Working Families Alliance, among others, said in a joint statement.

Kansas last year cut ties with Maximus, a Virginia-based firm that outsources government services, after growing dissatisfied with case backlogs and bungled Medicaid applications the firm made while administrating KanCare, through which the state administers Medicaid.

It’s faced separate accusations of wage theft and union busting and other hurdles, including compliance failures related to Medicaid reimbursements in the Garden State.

The U.S. Department of Human Services Inspector General found Maximus submitted faulty reimbursement documents 51% of the time.

“This work is best done by public workers. Privatization inevitably leads to the deterioration of services for the public in order to maximize returns for shareholders,” the groups said. “At the very least, this work should not be performed by MAXIMUS. New Jersey families deserve better.”