AUGUSTA - Maine's Health and Human Services Department has selected a Pennsylvania-based company to manage the MaineCare computer system. Negotiations with Unisys Corp. are expected to be completed this month.

The Blue Bell, Pa., company is one of three vendors that submitted proposals to manage the information system for Maine's Medicaid program, which is known as MaineCare. The other two were ACS State Healthcare LLC of Atlanta and First Health Services Corp. of Glen Valley, Va.

Maine's outsourcing of the MaineCare computer jobs would displace about 100 state workers. State officials say many of those employees could be rehired by Unisys.

The MaineCare billing system was plagued with problems, including providers getting incorrect payments or no payments after the state switched to a new system to handle claims in January 2005. Privatizing the service will help bring the state system into compliance with federal standards, according to DHHS officials.