News Advisory: July 24, 2013

HP Awarded $166 Million Contract for Medicare Claims Processing

PALO ALTO, Calif. — HP Enterprise Services today announced it has been awarded a task order by the Centers for Medicare & Medicaid Services (CMS) to host and improve efficiency of the Medicare Part A and Part B fee-for-service (FFS) claims processes nationwide.

This task order, valued at $166 million, was awarded under the new CMS Virtual Data Center-Prime (VDCP) indefinite delivery, indefinite quantity (IDIQ) contract.

The new contract enables HP to:

  • Continue providing Enterprise Mainframe Applications Hosting Services for three Medicare applications that CMS uses to process Medicare Part A and Part B claims nationwide.
  • Continue to host and process Medicare Part B claims for the Railroad Retirement Board for all 50 states, as well as the Medicare Part A and Part B claims in 21 states.
  • Acquire the hosting and processing for Medicare A and B claims workloads for 10 additional states, increasing HP’s existing Medicare mainframe hosting and processing workloads by nearly 50 percent.
  • Continue providing hosting and processing services at its data center in Tulsa, Okla.

 HP is supporting the agency’s goals of consolidating IT contract vehicles to lower costs, enhance interoperability among data centers, implement standard processes and procedures for data center oversight, and ensure compliance with CMS architecture standards for all data center operations.

“As Medicare claim volumes increase, it is critical for CMS systems to accommodate increased demand while the agency focuses on maintaining service quality and managing tax dollars in a fiscally responsible way,” said Marilyn Crouther, senior vice president, general manager, U.S. Public Sector, HP Enterprise Services. “HP continues to deliver proven processes resulting from nearly 50 years of experience in working with government agencies enabling CMS to maintain the efficient, secure technology infrastructure that is critical for Medicare services.”

During 2012, HP processed more than 435 million Part A and Part B claims. HP is the nation’s largest provider of Medicaid and Medicare services, administering billions of dollars per year in combined Medicare and Medicaid claims processing services. HP’s U.S. healthcare experience spans payer, government and life science communities.

HP’s premier EMEA client event, HP Discover, takes place Dec. 10-12 in Barcelona, Spain.

This news advisory 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, market share or competitive performance 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 the need to address the many challenges facing HP’s businesses; the competitive pressures faced by HP’s businesses; risks associated with executing HP’s strategy; the impact of macroeconomic and geopolitical trends and events; the need to manage third party suppliers and the distribution of HP’s products and services effectively; the protection of HP’s intellectual property assets, including intellectual property licensed from third parties; risks associated with HP’s international operations; 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 suppliers, customers and partners; the hiring and retention of key employees; integration and other risks associated with business combination and investment transactions; the execution, timing and results of restructuring plans, including estimates and assumptions related to the cost and the anticipated benefits of implementing those plans; the resolution of pending investigations, claims and disputes; and other risks that are described in HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2013 and HP’s other filings with the Securities and Exchange Commission, including HP’s Annual Report on Form 10-K for the fiscal year ended October 31, 2012.  HP assumes no obligation and does not intend to update these forward-looking statements.

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