HMS, a wholly owned subsidiary of HMS Holdings Corp. (NASDAQ:HMSY), announced today that it has been awarded a contract by the Commonwealth of Virginia, Department of Medical Assistance Services (DMAS), to serve as the Commonwealth’s Medicaid Recovery Audit Contractor (RAC).
Under the terms of this contract, HMS will audit both in-state and out-of-state providers participating in the Virginia Medicaid program to identify underpayments and overpayments for all claims paid under the Medicaid and CHIP programs.
The contract has an initial term of three years and includes three one-year renewal options.
HMS has provided cost containment services to DMAS since 1987. During that time, HMS has recovered $346M on behalf of the Commonwealth. Each year, HMS saves the Commonwealth millions of dollars through its cost avoidance efforts.About HMS HMS is the nation's leader in coordination of benefits and program integrity services for healthcare payers. HMS's clients include health and human services programs in more than 40 states; commercial programs, including commercial plans, employers, and over 135 Medicaid managed care plans; the Centers for Medicare and Medicaid Services (CMS); and Veterans Administration facilities. As a result of the company's services, clients recovered over $2.5 billion in 2011, and saved nearly $7 billion through the prevention of erroneous payments.