ACS Wins New Jersey Blue Cross Outsourcing Deal

Affiliated Computer Services said Tuesday that Horizon Blue Cross Blue Shield of New Jersey has renewed a contract that calls for ACS to provide a range of claims processing services to the insurer.

The extended contract, financial terms of which were not disclosed, expands a previous outsourcing agreement and calls for the number of claims handled by ACS on behalf of Horizon Blue Cross Blue Shield to increase by 80%.

The contract is slated to run through 2010

Horizon Blue Cross Blue Shield of New Jersey, headquartered in Newark, is the state's largest health insurer and provides coverage to more than 3 million individuals.

The deal is a sign that ownership uncertainty at ACS isn't scaring off potential customers.

Last month, ACS chairman Darwin Deason said he is teaming up with Cerberus Capital Management in an effort to take the publicly traded company private for $59.25 per share. At least two shareholder groups have reacted with lawsuits against the company designed to block acceptance of the bid, which they claim undervalues ACS.