MAXIMUS Awarded Renewal on Medicare Appeals Contract
RESTON, Va.--(BUSINESS WIRE)--
The Centers for Medicare & Medicaid Services (CMS) has renewed its contract with MAXIMUS Federal Services, a subsidiary of MAXIMUS (NYSE:MMS), for 2008 under a three-year contract under which MAXIMUS processes appeals related to the Medicare Part D prescription drug program. The contract renewal is valued at approximately $14 million.
Under this contract, MAXIMUS Federal Services receives and impartially adjudicates appeals from Medicare beneficiaries, resulting from a denial made by a Medicare Advantage-Prescription Drug plan or a stand-alone Prescription Drug Plan. MAXIMUS Federal Services provides Part D appeals services as a Qualified Independent Contractor (QIC) to CMS.
In addition to its role as a Part D QIC, the Company also provides appeals nationwide for Medicare Part C (Medicare Advantage) and for traditional Medicare Part A for the eastern half of the United States.
"MAXIMUS has successfully provided CMS, and its predecessor agency, with Medicare appeals services since l989, and we are delighted to build on this track record with this project renewal," said MAXIMUS CEO Richard Montoni." As a QIC, we have demonstrated our ability to make decisions, including those related to medical necessity, that afford thousands of beneficiaries the highest level of independence and objectivity."
MAXIMUS is a leading provider of program management, consulting and information technology solutions primarily to government clients. The Company has more than 6,000 employees located in more than 220 offices in the United States, Canada and Australia. MAXIMUS is included in the Russell 2000 Index and the S&P SmallCap 600 Index.
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 May 14, 2008