Serco wins US health contract

5th Aug 2013 07:25

Services company Serco Group has scored a contract from the US Department of Health and Human Services Centers for Medicare & Medicaid Services (CMS) to provide processing support for new health benefit exchanges.Serco said it will deliver and manage labour to review, verify and process applications on a cost-plus-fixed-fee basis. The contract has a one-year base period valued about $115m with further four one-year options. It has a potential total contract value of $1.25bn, including possible option periods and optional tasks.Serco will manage around 1,500 staff in the US that will support CMSwith the routing, automated processing, reviewing, and troubleshooting ofapplications submitted for enrolment into a Qualified Health Plan.The company will also provide records management and verification support.It comes after the Patient Protection and Affordable Care Act introduced a series of consumer choices and insurance competition through a Federally Facilitated Marketplace (FFM). The exchange is a state-based marketplace that accepts applications and determines eligibility for applications, as well as participation and enrolment into affordable health insurance and insurance affordability programs. The Affordable Care Act directs CMS to establish and operate marketplaces for states that do not elect to establish their own.Christopher Hyman, Chief Executive of Serco, said: "We are delighted to be awarded such an important contract to support the Affordable Care Act inThe US and our Americas division looks forward to working with the Centers for Medicare & Medicaid Services." RD