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CMS Awards Medicaid Integrity Program Contract to HMS
Date:12/18/2007

NEW YORK, Dec. 18 /PRNewswire/ -- Health Management Systems, Inc. (HMS) announced today that it has been awarded an umbrella audit contract by the Centers for Medicare & Medicaid Services (CMS) under the Medicaid Integrity Program. The contract qualifies HMS to bid on individual Task Orders issued by CMS for a variety of auditing functions designed to identify inappropriate payments. The term of the contract is one year; CMS has the option to renew the contract on an annual basis.

(Logo: http://www.newscom.com/cgi-bin/prnh/20030304/NYTU172LOGO )

"We are thrilled to be expanding our partnership with CMS," said William C. Lucia, President. "Our 30-year history of working with Medicaid agencies across the country will enable us to assist CMS in assuring the integrity of the Medicaid program."

Section 6034 of the Deficit Reduction Act (DRA) of 2005 established the Medicaid Integrity Program (MIP) designed to provide CMS the resources necessary to combat fraud, waste and abuse in Medicaid. Congress appropriated $5 million in FY 2006 with an additional $50 million in FY 2007 and 2008 and $75 million annually in FY 2009 and each year thereafter to carry out the operations of this program. HMS was one of five firms awarded an audit contract.

About Health Management Systems

Health Management Systems (HMS) is the nation's leader in cost containment, coordination of benefits, and program integrity services for government healthcare programs. HMS serves the Medicaid programs of 40 states and 72 Medicaid managed care plans. In addition, the company provides services to child support agencies, SCHIP, and Veterans Administration facilities. In 2006 alone, HMS recovered more than $1.0 billion from third parties and other funding sources for its clients, and provided data that assisted them in saving several billions more. HMS is a wholly owned subsidiary of
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