Press Release: March 22, 2011

Nevada Awards HP $176 Million Medicaid Contract

HP to serve as fiscal agent and help drive state toward healthcare reform

PALO ALTO, Calif. -- HP Enterprise Services today announced a five-year, $176 million services agreement with the Nevada Division of Health Care Financing and Policy to strengthen Medicaid operations and help position the state for healthcare reform.

The new agreement calls for HP to become Nevada’s Medicaid fiscal agent and to upgrade and manage the state’s Medicaid Management Information System. HP also will help the agency enhance service delivery to Medicaid clients and improve staff productivity.

The agency is responsible for Medicaid benefits for almost 300,000 Nevada residents and processes about 12 million Medicaid claims per year.

“We look to HP for a smooth transition to more effectively administer benefits to our residents and provide excellent policy guidance to help us prepare for and manage challenges such as healthcare reform,” said Charles Duarte, Medicaid Administrator, Nevada. “We selected HP based on its deep knowledge and experience to help us enhance our Medicaid program operations to benefit Nevada’s Medicaid clients, healthcare providers and other stakeholders.”

HP administers $95 billion in benefits a year and serves as fiscal agent or principal IT provider to 21 other Medicaid programs. As the nation’s largest provider of Medicaid and Medicare process management services, HP has the technology experience to deliver a smooth system takeover and transition for Nevada healthcare providers. HP’s global healthcare experience spans payer, provider, government and life science communities.

HP will process medical and pharmacy claims as well as review and process prior authorization requests in addition to utilization management and personal care reviews for the state. HP also will assist the Medicaid program in connecting healthcare providers with critical health information to improve overall care.

In addition, the company will aid the state in detecting potential fraud and abuse cases while improving the efficiency of claims processing. HP will add new decision-support systems and services, enabling better decision making through more accurate and up-to-date information. All of these steps are designed to lower the risks, costs and challenges associated with the state’s Medicaid program.

“All states are preparing for demands required by new healthcare reform legislation,” said Susan Arthur, vice president, U.S. Healthcare Industry, HP Enterprise Services. “HP will build on our deep industry, applications and infrastructure expertise as well as experience from supporting 21 other states’ Medicaid programs to ensure Nevada can deliver quality healthcare to Medicaid clients while continuing to remain responsible stewards of state revenues.”

About the Nevada Division of Health Care Financing and Policy

The Nevada Division of Health Care Financing and Policy provides medical benefits through the Medicaid and Children’s Health Insurance Program (CHIP), called Nevada Check Up. These programs spend $1.5 billion annually on more than 300,000 low-income Nevadans, including families, children, the elderly and disabled.

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