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ACS Launches Medicaid Cost Savings Initiative
Date:3/6/2008

New Program Offers Millions in Potential Savings

DALLAS, March 6 /PRNewswire-FirstCall/ -- State Medicaid programs can potentially save millions of dollars annually through an innovative initiative of Affiliated Computer Services, Inc. (NYSE: ACS) and RxHub, LLC. The proprietary program helps ACS' healthcare clients avoid costly, manual recovery of drug claims from commercial insurers.

The new program enables pharmacies to immediately identify pharmacy benefit coverage at the point-of-sale. This eliminates the costly, inefficient "pay and chase" programs state Medicaid agencies currently use to recover monies when other insurance coverage is discovered.

"The potential savings identified through this new program is another way in which ACS provides innovative technology to our state partners to help reduce the costs of administering their Medicaid programs," said Christopher T. Deelsnyder, ACS senior vice president and managing director, Government Healthcare Solutions.

Federal law requires that commercial insurers pay before Medicaid pays on claims of beneficiaries who are also covered by Medicaid. In today's paper-based world, it is difficult to determine if Medicaid beneficiaries also have commercial insurance coverage when they receive care.

Once state Medicaid agencies have determined that a potentially liable third party exists, they must either try to avoid those costs or resort to "pay and chase," in which the state agencies pay beneficiaries' medical bills and then attempt to recover whatever portion of the claims are owed by commercial insurers. This complex process often takes months and yields a very small percentage of the millions of dollars due to the states each year.

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SOURCE Affiliated Computer Services, Inc.
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