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HMS Awarded New Contracts for Managed Care Services

NEW YORK, Feb. 10 /PRNewswire-FirstCall/ -- HMS (Nasdaq: HMSY) today announced that it had been awarded cost containment contracts from Neighborhood Health Providers and Optima Health, a Sentara service -- adding over 200,000 Medicaid lives to its managed care portfolio. HMS will provide these services to Neighborhood Health Providers, LLC in New York, and to Optima Health Plan in Virginia.

HMS will identify health insurance coverage not previously known for its Medicaid members, including commercial insurance and TRICARE, and then bill the liable third parties. In addition, HMS will assist Optima in identifying any member of its commercial population who has primary Medicare coverage, and facilitate the recovery of claims from Medicare.

With the addition of these plans, HMS has over 33 million Medicaid lives under contract.

About HMS

HMS is the leader in coordination of benefits and program integrity services for government healthcare programs. The company's clients include health and human services programs in more than 40 states, 90 Medicaid managed care plans, the Centers for Medicare and Medicaid Services (CMS), and Veterans Administration facilities. HMS helps ensure that healthcare claims are paid correctly and by the responsible party. As a result of the company's services, government healthcare programs recover over $1 billion annually, and avoid billions of dollars more in erroneous payments. HMS is a wholly owned subsidiary of HMS Holdings Corp., which is headquartered in New York and operates offices nationwide.

    Contacts:    Francesca Marraro (media relations)
                 (212) 857-5442

                 Christine Rogers Saenz (investor relations)
                 (212) 857-5986

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