MAXIMUS Awarded Contract to Provide Services for COBRA Premium Assistance Benefits

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-First CMS Contract Award Under COBRA Provisions of the Recovery Act-

RESTON, Va.--(BUSINESS WIRE)-- MAXIMUS (NYSE:MMS) announced today that its Federal Services subsidiary has been awarded a one-year contract by the Centers for Medicare & Medicaid Services (CMS) to assist with expedited reviews and information services regarding COBRA premium assistance benefits provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The contract is valued at approximately $2 million.

Under the contract, MAXIMUS Federal will review requests for expedited reviews and make recommendations -- subject to CMS's review and final action -- as to whether certain individuals denied premium assistance are eligible for the benefit. MAXIMUS Federal will also answer questions from the public about the premium assistance available under the Recovery Act and the expedited review process through a website (www.continuationcoverage.net) and toll-free helpline (1-866-400-6689). MAXIMUS Federal will direct callers, as appropriate, to the Department of Labor, which handles cases involving private employers with 20 or more employees.

"This contract represents the first award made by CMS under the Recovery Act's COBRA provisions, and we are excited to be the provider of choice for CMS," commented MAXIMUS CEO Richard Montoni. "This award further demonstrates our longstanding experience and industry-leading expertise in health appeals and reconsiderations. Additionally, we are eager to support our clients as they navigate the challenges surrounding the utilization and implementation of Recovery Act funds."

To help displaced workers maintain health care coverage for themselves and their families, the Recovery Act provides a 65 percent subsidy for health insurance premiums for workers who have elected COBRA after they have been involuntarily terminated from their jobs. This premium assistance benefit potentially can last for up to 9 months. When a group health plan, employer or insurer denies an individual access to premium assistance under the Recovery Act, he or she may request expedited review of the denial. Under the law, CMS handles appeals for government employees (federal and non-federal) under COBRA, as well as for those individuals covered by comparable "State mini-COBRA" programs that apply to group health plans offered by private employers with fewer than 20 employees). Decisions on appeals will be made within 15 business days.

MAXIMUS Federal is recognized as the industry leader for government-sponsored health reconsideration and appeals programs at the state level, and operates clinical review projects for 30 state regulatory agencies. With over 200 health reconsideration experts across the Company, MAXIMUS Federal delivers unparalleled experience and thought leadership in the critical process of health appeals reconsiderations. MAXIMUS Federal provides specialized services through a blend of professionals, including physicians, pharmacists, and attorneys, who are able to navigate the challenging and often complex regulations encompassing health reconsiderations and appeals.

MAXIMUS Federal Services is fully accredited by the Utilization Review Accreditation Commission as an independent review organization. Many of the Company's independent review programs are also ISO 9001:2008 certified. Since 1989, MAXIMUS has completed more than 700,000 health care appeals.

MAXIMUS is a leading provider of government services and is devoted to providing health and human services program management and consulting services to its clients. The Company has more than 6,000 employees located in more than 220 offices in the United States, Canada, Israel, and Australia. Additionally, MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.

MAXIMUS, and not the federal government, is solely responsible for the content of this press release. Statements that are not historical facts, including statements about the Company's confidence and strategies and the Company's expectations about revenues, results of operations, profitability, future contracts, market opportunities, market demand, or acceptance of the Company's products are forward-looking statements that involve risks and uncertainties. These uncertainties could cause the Company's actual results to differ materially from those indicated by such forward-looking statements and include reliance on government clients; risks associated with government contracting; risks involved in managing government projects; legislative changes and political developments; opposition from government unions; challenges resulting from growth; adverse publicity; and legal, economic, and other risks detailed in Exhibit 99.1 to the Company's most recent Quarterly Report filed with the Securities and Exchange Commission, found on www.maximus.com. 


    Source: MAXIMUS

Released August 11, 2009