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Michigan Medicaid Extends Contract With HMS

Contract Will Help State Recover Dollars and Contain Costs

NEW YORK, Nov. 27 /PRNewswire/ -- Health Management Systems, Inc. (HMS) announced today that its contract with the Michigan Department of Community Health (MDCH) and the Michigan Family Independence Agency (MFIA) has been extended through October 31, 2008. The contract scope includes Medicaid third party identification, verification, and recovery services. HMS also provides medical support enforcement services for the Michigan Family Independence Agency (MFIA) for children covered by child support.

HMS has served MDCH since 1989, recovering over $72 million in payments from third party sources.

Says Paul Reinhart, Medicaid Director, "Michigan Medicaid pursues every opportunity to contain costs and thus helps ensure the well-being of its people. HMS has helped us develop a more efficient cost savings model for our people as a result of their technology-based solutions and their large repository of eligibility information. We look forward to continuing our work with them."

Reinhart added, "The state of Michigan recently enacted an estate recovery program. Given HMS's strong performance in the past, the state is actively discussing expanding HMS's work with the state to include administration of this important new program."

Bill Lucia, President of HMS, remarked, "We are proud that the state of Michigan has again selected HMS as its cost containment partner. "The demands facing Medicaid in Michigan and throughout the nation require the resources, experience, and creative solutions that HMS brings."

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 HMS Holdings Corp. (Nasdaq: HMSY), which is headquartered in New York and operates offices nationwide.

Contacts: Francesca Marraro Christine Rogers

(media relations) (investor relations)

(212) 857-5442 (212) 857-5986

SOURCE Health Management Systems
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