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Kentucky Awards Medicaid MIS Contract

A highly competitive procurement that will result in the significant modernization of the Kentucky Medicaid program

The commonwealth of Kentucky last month awarded a contract worth a possible $170 million to EDS to implement a new Medicaid Management Information System.

The agreement spans five years and nine months and includes two one-year options and a 19-month implementation period during which EDS will take over and operate the state's existing legacy Medicaid system. The new MMIS will serve Kentucky Medicaid's more than 691,000 members and 35,000 health care providers.

The new system will be based on EDS' interChange Health System, which already has been successfully installed in a number of other states, including Oklahoma, Kansas and Pennsylvania.

"EDS was awarded the contract after a highly competitive procurement that will result in the significant modernization of the Kentucky Medicaid program," said commissioner Shannon R. Turner of the Department for Medicaid Services, the state agency responsible for administering Kentucky's Medicaid programs. "We look forward to working with EDS to implement a truly state-of-the-art Medicaid system that gives us greater access to information and helps us to make more effective policy decisions and improve the quality of care for our members."

EDS will provide a complete suite of Medicaid fiscal agent services, including system development and maintenance, financial services, real-time claims adjudication, decision support/data warehouse, call center services, mail room, data entry and provider training. The new system will allow Medicaid providers to submit claims in a variety of electronic formats, including secure Internet connection, and deliver more timely and accurate claims adjudication.

"We are proud to have been selected by Kentucky to support the Commonwealth's far-reaching Medicaid program," said Barbara Anderson, vice president of EDS State and Local Government Solutions. "We look forward to working with the commonwealth of Kentucky and sharing more than 30 years of Medicaid experience."

The contract returns EDS to Kentucky as the state's Medicaid services provider after a 10-year hiatus and raises to 19 the number of states to which EDS provides Medicaid services, according to the company.