HP Awarded $200 Million Contract to Maintain Medicare Part B Claims Processing System

PALO ALTO, Calif.--(BUSINESS WIRE)--HP Enterprise Services today announced it has been awarded a contract worth up to $200 million by the U.S. Centers for Medicare & Medicaid Services (CMS) to provide application services that improve Medicare Part B claims processing as well as the delivery of healthcare services to beneficiaries.

“HP is proud to support CMS in their Medicare modernization initiatives.”

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.

Under the contract, HP (NYSE:HPQ) will provide applications support and maintenance services, including full development life cycle 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.

Additionally, HP will 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.

In support of CMS’s Medicare Modernization and Affordable Care Act initiatives, HP will:

Implement large-scale legislative mandates such as Health Insurance Portability and Accountability Act (HIPAA) 5010 transactions and International Classification of Diseases, 10th edition (ICD-10), code sets.
Consolidate processing cycles or establish new MACs system environments within the CMS enterprise data centers.
Develop new MCS system interfaces in support of the CMS National Level Repository, which is associated with determining provider incentives for implementing electronic heath records.

To best meet the needs of CMS, HP is teaming with four small businesses to provide valuable insight and innovative IT solutions.

HP has demonstrated a solid record of performance since being awarded the initial Part B Shared System Maintainer contract in 1997. HP has been using CMMI Level 5, the highest system and software process maturity rating, since June 2007.

“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,” said Dennis Stolkey, senior vice president, U.S. Public Sector, HP Enterprise Services. “HP is proud to support CMS in their Medicare modernization initiatives.”

HP has provided support services to Medicare and Medicaid clients since the inception of the programs, handling 35 percent of all Medicare and Medicaid claims in the United States and processing 2.4 billion healthcare transactions annually – including 1 billion in healthcare claims. HP provides an array of technology services for CMS and Medicare contractors including data center services, maintenance of the Medicare Part B system and non-base system support.

The Medicare Part B Shared System contract was awarded under the Enterprise System Development indefinite-delivery-indefinite-quantity contract vehicle awarded to HP Enterprise Services by CMS in 2007.

More information about U.S. Federal Contract Vehicles awarded to HP is available at http://h10134.www1.hp.com/industries/government/contract-vehicles/. Additional information about HP’s U.S. Federal Government Healthcare Solutions is available at http://h10134.www1.hp.com/industries/government/federal-healthcare/.

About HP

HP creates new possibilities for technology to have a meaningful impact on people, businesses, governments and society. The world’s largest technology company, HP brings together a portfolio that spans printing, personal computing, software, services and IT infrastructure to solve customer problems. More information about HP is available at http://www.hp.com.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2010 and HP’s other filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2009. HP assumes no obligation and does not intend to update these forward-looking statements.

The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.