North Carolina Awards HP $122 Million Medicaid Contract Extension
PALO ALTO, Calif. -- HP Enterprise Services today announced a $122 million agreement with the North Carolina Department of Health and Human Services for HP to continue providing Medicaid and mental health fiscal agent services for up to two years.
Under the extension, HP will continue managing North Carolina’s Medicaid Management Information System (MMIS) with business process outsourcing services. HP also is helping the state prepare for changes in the healthcare industry for Medicaid and mental health programs.
Most recently, HP upgraded the North Carolina MMIS to HIPAA 5010 standard electronic transaction codes and implemented the National Correct Coding Initiative, saving the state approximately $5 million annually. HP also implemented the National Provider Identifier, a HIPAA administrative simplification standard, to help the state improve billing accuracy.
HP helps North Carolina manage its Medicaid and mental health programs by processing more than 80 million claims annually for more than 60,000 providers and 1.7 million recipients statewide.
In late 2011, HP assumed management of North Carolina Health Choice, the state’s healthcare program for children, which includes 260,000 recipients and 35 million claims payments per year, totaling approximately $300 million. Through managing this program, HP will assist the state in saving an estimated $25 million in administrative costs over the next two years.
From its facilities in Raleigh, N.C., HP provides an array of operations support – including prior approval reviews and provider services – in addition to claims processing. HP also supplies provider representatives, and supports the state’s prescription drug rebate program. All of the support programs are designed to improve provider services and reduce costs.
“States need to continue providing quality service to recipients and providers in the midst of regulatory changes and continued budget pressures,” said Susan Arthur, vice president, U.S. Healthcare Industry, HP Enterprise Services. “With this contract extension, HP will continue leveraging its deep MMIS expertise to help North Carolina provide its residents the Medicaid and mental health benefits they need in a timely and cost-effective manner.”
HP is the nation’s largest provider of Medicaid process management services supporting MMIS in 21 states. HP performs 2.4 billion healthcare transactions annually, including 1 billion healthcare claims. HP’s global healthcare experience spans the health plan, provider, government and life science communities.
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