New York Awards $351 Million Medicare Contract

WASHINGTON (04/18/2000) - The New York State Department of Health signed a six-year, $351 million contract with Computer Sciences Corp. to create a new system that will process and report Medicaid claims.

The system will ultimately allow New York to handle online claims, said Bill Liddle, project director/general manager of the Medicaid Management Information System.

In developing a replacement Medicaid system, CSC will:

* Develop a 7-terabyte data warehouse environment to analyze Medicaid claims, allowing the state to develop policy, trends and other reports and detect fraud.

* Upgrade the existing Medicaid Management Information System software.

* Develop a new Electronic Medicaid Eligibility Verification System, allowing medical providers to verify program eligibility for Medicaid recipients, assist electronic submission of claims, allow pharmacies to check for harmful drug interactions and increase the efficiency of pre-authorizations by providers and pharmacists.

Last year, the Medicaid system handled $25 billion worth of claims for 300 million recipients.

CSC will also create and maintain electronic versions of the state's provider manuals, allowing providers to access them via the Internet.

CSC has worked with New York's Medicaid program since 1986 but did not run the verification system, which was handled by another company. This contract ties the two systems together.

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