Mass. hires EDS for Medicaid revamp

Massachusetts state government officials have awarded a $48 million, seven-year contract to EDS to design, develop and implement a modern Medicaid Management Information System (MMIS).

The new system -- called "New MMIS" -- will provide the core technology platform for Medicaid and other human services programs. It will support the consolidation of health records, permit efficient implementation of programs and be flexible enough to create new ones. The contract can be extended for another four years.

EDS will replace the current state-operated system with a Web-based Java application that will use the government's shared infrastructure. The infrastructure will include shared services, such as enterprise identity management and electronic payments, according to a press release.

In April, Massachusetts health officials awarded a contract to Reston, Va.-based Maximus. They will help integrate Medicaid member and provider services into a single customer services model. The contract also includes EDS and Vecna Technologies.

Massachusetts' Medicaid program provides benefits to nearly 1 million people through about 27,000 providers.

EDS, its system certified by the federal Centers for Medicare and Medicaid Services, now manages Medicaid systems for 18 states, processing more than one billion claims and administers $100 billion in benefits annually combined.