Unisys Corporation today announced that it was awarded the follow-on contract from the Commonwealth of Kentucky`s Department of Medicaid Services to operate and maintain the Commonwealth`s Medicaid Management Information System. The firm-fixed price contract is worth an estimated $117 million to Unisys over the six-year life of the program.
The Commonwealth selected Unisys -- the incumbent contractor since 1995 -- for the new contract after a highly competitive procurement process that evaluated three vendors in terms of their technical qualifications, suggested enhancements and cost. The contract received final approval last Friday from the Government Contract Review Committee of the Kentucky State Legislature.
According to Glenn Jennings, Director, Division of Management Information Systems of the Kentucky Department for Medicaid Services, "The award of the Medicaid Fiscal Agent contract to Unisys assures us that there will be no disruption in the delivery of services to Kentucky recipients, and no changes for Kentucky Medicaid providers to worry about. This award allows Kentucky and Unisys to build on the improvements that started during the last two years and to implement some needed enhancements to the Medicaid system, such as an updated Decision Support System."
Unisys currently manages the Commonwealth`s fee-for-service Medicaid claims processing functions and provides automated and reporting support for the Managed Care Program. In addition to fee-for-service claims processing, Unisys provides prior authorization, provider relations, systems modification and maintenance, on-line point-of-sale system and pharmacy benefits management services to the some 520,000 Medicaid recipients in Kentucky. Under the new contract, Unisys will continue to provide these Medicaid services as well as some
enhancements, such as operating the provider enrollment department and supporting the state`s fraud and abuse investigative activities. Previously, the state operated the provider enrollment department, but the new contract transfers responsibilities solely to Unisys so that the state can focus on performing other vital tasks in support of the Medicaid contract.
"We`re excited to continue our strong relationship with the Commonwealth as well as with Medicaid recipients and health-care providers throughout Kentucky," said Paul Kruelle, vice president of Unisys Federal Systems Architecture and Software Development Practice. "Over the past few years, we have implemented systems enhancements to support the new Managed Care Program, upgraded Commonwealth desktop computers and printers, and successfully completed conversion of the system to full Y2K readiness. We now look forward to further advancing the delivery of world-class health care services in Kentucky."
The follow-on Kentucky Medicaid contract strengthens Unisys presence in state Medicaid claims processing. For example, in May 1997, Unisys was reselected for the Louisiana Medicaid Management Information Systems contract, with a total value of $150 million over the six-year life of the contract. In addition to Kentucky and Louisiana, Unisys claims processing and Medicaid operations in New Jersey, Oklahoma and Massachusetts rank Unisys as the second largest fiscal agent in the United States, in terms of program value, volume of claims, annual benefits paid to recipients, and number of recipients that Unisys serves.
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