Press Release: August 24, 2010

Alabama Awards $135 Million Medicaid Management Contract to HP

System enhancements enable state to meet regulatory requirements, improve healthcare delivery

PALO ALTO, Calif. -- HP today announced a $135 million, eight-year technology services contract with the Alabama Medicaid Agency, enabling the state to contain costs while meeting new HIPAA requirements, and to improve healthcare delivery, provider satisfaction and recipient access to personal healthcare information.

The new contract extends HP’s 30-year relationship with Alabama’s Medicaid agency, which oversees the Medicaid program for more than 900,000 state residents each year. HP processed nearly 32 million Medicaid claims for Alabama healthcare providers in 2009.

As Alabama’s fiscal agent, HP will significantly enhance and continue to manage the state’s Medicaid Management Information System (MMIS). HP implemented interChange, the state’s new MMIS, in 2008. The Centers for Medicare & Medicaid Services certified Alabama’s interChange MMIS earlier this year.

“With the expected enrollment increases and regulatory changes, Alabama requires a system that efficiently meets providers’ as well as recipients’ needs so the agency can focus on our main objectives: managing our budget, improving quality and reducing fraud and abuse,” said Carol Steckel, commissioner, Alabama Medicaid Agency. “Based on our long relationship, HP will help us maintain a quality Medicaid program and support improved health outcomes for our recipients while allowing us to be good stewards of taxpayer dollars.”

System enhancements are designed to help the agency meet federal HIPAA regulations. New features also include web-based mechanisms to streamline interaction with providers, improve prescription services and give Medicaid recipients convenient access to information. Enhancements include:

  • HIPAA upgrades: HP will upgrade the system’s standard electronic transaction codes from HIPAA 4010 to 5010 and assess the system for changes required to support the new ICD-10 diagnosis code set. This assessment can help the agency prepare for the federally required upgrade, resulting in better information and patient care.


  • E-prescribing: HP will incorporate e-prescribing into the Alabama MMIS to streamline and secure the prescription process while lowering overhead costs. As a result, providers can access their patients’ full medical histories and send electronic prescriptions directly to pharmacies.


  • Recipient care web portal: HP will develop a website where beneficiaries can have secure online access to their personal health information, check program eligibility and update information. Recipients can be more informed and play a more active role in managing their own and their families’ health.


  • Web-based provider enrollment: HP will implement an automated process for providers to enroll in Medicaid. The automated process will be faster than today’s paper-based process and is expected to reduce costs by eliminating the need to hand process more than 50,000 pieces of paper and 1,500 mailings per month.


  • Correct-coding initiative: HP will integrate CMS correct-coding software into the MMIS to better contain costs and improve fraud and abuse detection.

Under the new contract, HP will migrate the agency’s storage to an HP StorageWorks 4400 Enterprise Virtual Array (EVA4400) storage area network Tier-1 environment. The core interchange application server will be migrated to HP-UX with support from the HP Migration Competency Center. Both of these changes support the provisioning of a high-performance and scalable infrastructure to the state to improve the response and services by the MMIS.

“HP and the Alabama Medicaid Agency are delivering a flexible, technically advanced system and streamlined processes to meet the agency’s need to conserve state funds while improving service for healthcare providers and Alabama’s Medicaid recipients,” said Barbara Anderson, vice president, State and Local Health and Human Services, HP Enterprise Services. “HP’s 40-plus years of Medicaid and healthcare technology experience converge to develop and provide quality service delivery that will continue meeting the state’s needs.”

HP is the nation’s largest provider of Medicaid and Medicare process management services, administering $95 billion in benefits a year, and serves as fiscal agent or principal IT provider for Medicaid in 21 states. HP’s global healthcare experience spans payer, provider, government and life science communities.

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