HMS Awarded Third Party Liability Contract by the Commonwealth of Virginia

NEW YORK--(BUSINESS WIRE)--HMS, a wholly owned subsidiary of HMS Holdings Corp. (NASDAQ:HMSY), announced today that is has been awarded a contract by the Commonwealth of Virginia, Department of Medical Assistance Services (DMAS) to provide third party liability services, including cost avoidance, commercial insurance recovery, Medicare disallowance, and credit balance reviews. The contract extends through December 31, 2012, with the option to renew for four additional one-year periods.

“HMS and Virginia have enjoyed a long and valuable partnership”

“HMS and Virginia have enjoyed a long and valuable partnership,” said Maria Perrin, HMS Executive Vice President for Government Services. “We are honored to continue to provide TPL services to the Commonwealth to help contain costs and ensure all Virginians receive the healthcare coverage they deserve.”

HMS has performed TPL revenue recovery services on behalf of Virginia since 1987, and has recovered $300 million in overpayments during that time. In addition, HMS saves the Commonwealth millions of dollars each year through its cost avoidance efforts.

About HMS (NASDAQ:HMSY)

HMS is the nation's leader in coordination of benefits and program integrity services for healthcare payors. HMS's clients include health and human services programs in more than 40 states; commercial programs, including commercial plans, employers, and over 120 Medicaid managed care plans; the Centers for Medicare and Medicaid Services (CMS); and Veterans Administration facilities. As a result of the company’s services, clients recovered over $1.8 billion in 2010, and saved billions of dollars more through prevention of erroneous payments.