Press Release: February 23, 2012

North Carolina Awards HP $122 Million Medicaid Contract Extension

Department of Health and Human Services uses proven HP technology to manage costs while preparing for change

PALO ALTO, Calif. -- HP Enterprise Services today announced a $122 million agreement with the North Carolina Department of Health and Human Services for HP to continue providing Medicaid and mental health fiscal agent services for up to two years.

Under the extension, HP will continue managing North Carolina’s Medicaid Management Information System (MMIS) with business process outsourcing services. HP also is helping the state prepare for changes in the healthcare industry for Medicaid and mental health programs.

Most recently, HP upgraded the North Carolina MMIS to HIPAA 5010 standard electronic transaction codes and implemented the National Correct Coding Initiative, saving the state approximately $5 million annually. HP also implemented the National Provider Identifier, a HIPAA administrative simplification standard, to help the state improve billing accuracy.

HP helps North Carolina manage its Medicaid and mental health programs by processing more than 80 million claims annually for more than 60,000 providers and 1.7 million recipients statewide.

In late 2011, HP assumed management of North Carolina Health Choice, the state’s healthcare program for children, which includes 260,000 recipients and 35 million claims payments per year, totaling approximately $300 million. Through managing this program, HP will assist the state in saving an estimated $25 million in administrative costs over the next two years.

From its facilities in Raleigh, N.C., HP provides an array of operations support – including prior approval reviews and provider services – in addition to claims processing. HP also supplies provider representatives, and supports the state’s prescription drug rebate program. All of the support programs are designed to improve provider services and reduce costs.

“States need to continue providing quality service to recipients and providers in the midst of regulatory changes and continued budget pressures,” said Susan Arthur, vice president, U.S. Healthcare Industry, HP Enterprise Services. “With this contract extension, HP will continue leveraging its deep MMIS expertise to help North Carolina provide its residents the Medicaid and mental health benefits they need in a timely and cost-effective manner.”

HP is the nation’s largest provider of Medicaid process management services supporting MMIS in 21 states. HP performs 2.4 billion healthcare transactions annually, including 1 billion healthcare claims. HP’s global healthcare experience spans the health plan, provider, government and life science communities.

HP’s premier client event, HP Discover, takes place June 4- 7 in Las Vegas.

This news release contains forward-looking statements that involve risks, uncertainties and assumptions. If such risks or uncertainties materialize or such assumptions prove incorrect, the results of HP and its consolidated subsidiaries could differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including but not limited to statements of the plans, strategies and objectives of management for future operations; any statements concerning expected development, performance or market share relating to products and services; any statements regarding anticipated operational and financial results; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include macroeconomic and geopolitical trends and events; the competitive pressures faced by HP’s businesses; the development and transition of new products and services (and the enhancement of existing products and services) to meet customer needs and respond to emerging technological trends; the execution and performance of contracts by HP and its customers, suppliers and partners; the achievement of expected operational and financial results; and other risks that are described in HP’s filings with the Securities and Exchange Commission, including but not limited to HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2011. HP assumes no obligation and does not intend to update these forward-looking statements.

© 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. The only warranties for HP products and services are set forth in the express warranty statements accompanying such products and services. Nothing herein should be construed as constituting an additional warranty. HP shall not be liable for technical or editorial errors or omissions contained herein.

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