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New Kentucky Medicaid Contract Awarded

A new state-of-the-art Medicaid Management Information System (MMIS) will be the centerpiece of Gov. Fletcher's statewide health care modernization initiative.

The Kentucky Cabinet for Health and Family Services (CHFS) recently announced that a new MMIS contract has been awarded to Electronic Data Systems (EDS), a leader in providing health care support to state governments.  CHFS announced that the contract is valued at $170 million, if all options are exercised, and will result in the implementation of a new state-of-the-art MMIS for the Commonwealth of Kentucky.

"EDS was awarded the contract after a highly competitive procurement that will result in the significant modernization of the Kentucky Medicaid program."

The agreement, signed in March 2005, spans five years and nine months and includes two one-year renewal options and a 19-month implementation period during which EDS will take over and operate the state's existing legacy Medicaid system. The new MMIS will serve Kentucky Medicaid's more than 691,000 members and 35,000 health care providers.

The new system will be based on EDS' interChange Health System, which has been successfully installed in a number of other states, including Oklahoma, Kansas and Pennsylvania.

"EDS was awarded the contract after a highly competitive procurement that will result in the significant modernization of the Kentucky Medicaid program," said Commissioner Shannon R. Turner of the Department for Medicaid Services, the state agency responsible for administering Kentucky's Medicaid programs. "We look forward to working with EDS to implement a truly state-of-the-art Medicaid system that gives us greater access to information and helps us make more effective policy decisions and improve the quality of care for our members."

EDS will provide a complete suite of Medicaid fiscal agent services, including system development and maintenance, financial services, real-time claims adjudication, decision support/data warehouse and other services. The new system will allow Medicaid providers to submit claims in a variety of electronic formats, including secure Internet connection, and deliver more timely and accurate claims adjudication.

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Last Updated 8/4/2005
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