HP Snags $119 Million Medicaid Contract

HP said it has won a significant contract extension to continue providing tech and back office services to the state of Kansas' Medicaid program.

The Kansas Health Policy Authority awarded the contract, which will pay HP $119 million over two years. The contract also includes two additional one-year options. HP has been working with KHPA since 2002.

Under the contract extension, HP will continue to manage KHPA's call center in Topeka, which handles more than 250,000 billing and payments calls annually. KHPA oversees Medicaid and other health benefits programs for about 300,000 Kansans.

"Medicaid beneficiaries and the health care providers who serve them consider this call center vitally important," said KHPA managing director Barbara Langner, in a statement.

"HP knows this industry and the state well. Based on that knowledge, they presented an innovative approach that enabled us to meet our fiscal as well as our service-level commitments—something we didn't think was possible," said Langner.

The pact, disclosed Wednesday, calls for HP to continue to enroll Medicaid providers and process roughly 19 million claims per year. HP also will maintain the state's Medicaid management systems and provide surveillance services designed to spot fraud, waste, and abuse.

"The state's call center is a valuable resource that minimizes business processing errors in billing and payments by providing Kansas residents with a real-time solution to address questions and concerns," said Barbara Anderson, VP for State and Local Health and Human Services in HP's Enterprise Services unit, in a statement.

"We were able to draw on our deep knowledge of the state's needs as well as our extensive Medicaid experience to come up with an innovative solution that fits the state's needs," said Anderson.

HP is the U.S.'s largest provider of Medicaid and Medicare processing services, handling $95 billion in benefits annually.