The deal runs for five years and nine months, including two single-year options and a 19-month implementation phase. In addition to system development and maintenance, EDS will provide a range of support services, including financial services, claims adjudication, provider training, and relevant data, mail room, and call center services.
The new Medicaid system will support several electronic claims submission formats.
EDS last managed Kentucky’s Medicaid in 1995, at which point Unisys took over the contract. In bidding for the new contract, EDS beat out both incumbent Unisys and ACS.
Kentucky also recently awarded a five-year, $113m contract to First Health Services to manage the state’s Medicaid care services, including call center operations and disease management programs.
Although the contract is under protest, the state’s finance department should rule on the protest soon, said Gwenda Bond, a spokesperson for the Kentucky Cabinet for Health and Family Services, which administers the state’s Medicaid program.
In related news, EDS last week announced a seven-year, $73m deal to develop and operated a Medicaid Management Information System for the state of Oregon. The company will also handle Oregon’s pharmacy benefits and drug rebate program.
