The Dupont Group News

State Signs $50M, Five-Year Contract with Hewlett Packard for Medicaid Program

Boston Business Journal, Jessica Bartlett

October 20, 2014

Massachusetts will pay $50 million for a five-year contract extension with HP Enterprise Services to maintain the state’s Medicaid payment system.

The Medicaid Management Information System, operated by HP since 2005, handles all aspects of billing for MassHealth members, including the billing for 300,000 people on temporary Medicaid.

“The ability to maintain a robust, flexible and user-friendly Medicaid system is vital to improving outcomes and the quality of health care services across multiple government programs,” said Susan Arthur, vice president of US Health and Life Sciences Industry for HP Enterprise Services. “We look forward to building on our past success by implementing system upgrades that will enable the commonwealth of Massachusetts to continue its health care transformation well into the future.”

State officials said the MMIS system is crucial to MassHealth operations, doling out repayment to providers that provide care to MassHealth members. The contract also provides IT support to an incentive program known as the Medical Assistance Provider Incentive Repository.

Through the Medical Assistance Provider Incentive Repository, eligible states are allowed to administer federal incentive payments to help providers adopt new electronic health records.

Health providers in Massachusetts have collected more than $219 million through the incentive program since the system went live in 2011.

State officials said the HP contract will not only ensure that the incentive program is functioning properly, but will also embed updated requirements from the Centers for Medicaid & Medicare Services into the program to make sure providers are receiving the correct amount of incentives.

Massachusetts is only one of 19 states that uses HP services to service Medicaid clients.

Last year alone, the system processed approximately 51 million health care claims worth $7.8 billion.