BOISE -- Officials scrutinizing Idaho's trouble-prone Medicaid claims processing system say it's now operating more efficiently than a year ago and that most outstanding payments have been recovered.

Idaho adopted a new Medicaid claims processing system in June 2010, after awarding the contract to California-based Molina Medicaid Solutions.

But the system broke down almost immediately, interrupting payments to numerous Medicaid providers and threatening their existence.

The Idaho Department of Health and Welfare issued $117 million in interim payments to providers, to help them stay afloat.

Only about $1 million of those payments remain unrecovered, according to a follow-up report issued the Office of Performance Evaluations.

In addition, the number of providers still unsatisfied with the new claims processing system has dropped to 25 percent, down from 33 percent a year ago.

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