Texas extends ACS contract

The Texas Health and Human Services Commission has awarded Affiliated Computer Services (ACS) a two-year, $230 million contract extension for Medicaid claims processing.

ACS captured the original contract in 2003, besting EDS’ National Heritage Insurance subsidiary. That contract was to run through August 2007. With the extension, the contract now runs through August 2009.

ACS, working with Accenture and MMC, has formed the Texas Medicaid and Healthcare Partnership. The consortium processes claims and provides support for the state’s Medicaid program, according to ACS. Services also include provider relations, prior authorization, medical management and call center operations.

The partnership employs nearly 1,200 people in Austin, Texas. The contractors process more than 5 million claims per month. The state’s Medicaid program is the third largest in the United States.

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