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8/17/2010
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HP Awarded $200 Million Medicare Contract

Provision of applications support and maintenance for processing Medicare Part B claims will expand Hewlett-Packard's longstanding relationship with the federal health insurance program.




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The Centers for Medicare & Medicaid Services (CMS) has awarded Hewlett-Packard Enterprise Services a contract worth up to $200 million to provide application services that improve Medicare Part B claims processing, as well as the delivery of healthcare services to beneficiaries.

The Medicare Part B Shared System Maintainer contract is for one base year with seven one-year renewal options. Medicare's Multi-Carrier System (MCS) is utilized by CMS carriers and Medicare administrative contractors (MACs) to process approximately 750 million Medicare Part B claims annually.

Medicare Part B is medical insurance that helps cover doctors' services and outpatient care. It also covers some other medical services that Part A doesn't cover, such as physical and occupational therapy and some home health care. Part B helps pay for these covered services and supplies when they are medically necessary.

HP announced Monday that the contract calls for the company to provide applications support and maintenance services, including full development lifecycle support for system maintenance and enhancements. HP services will deliver production and user support for the processing of an ever-increasing volume of Medicare Part B claims, as well as MAC transition support.

HP will also deliver related system maintenance and transition support to the Healthcare Integrated General Ledger Accounting System. This system exchanges data with the MCS for the processing of claim billing information, provider profile information, beneficiary profile information, check reconciliation, payment information, and other claim-related data.

"As the Medicare population grows, CMS continues to modernize to be able to manage and deliver transformative technology that will improve Medicare services for beneficiaries and healthcare providers alike," Dennis Stolkey, senior VP, U.S. public sector at HP Enterprise Services, said in a statement.

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