ACS, A Xerox Company, Takes Over Management Of Claims System For Nation’s Largest Medicaid Program

ACS, A Xerox Company (NYSE: XRX), has taken over management of the claims processing system for California’s Medicaid program, known as Medi-Cal. It’s the nation’s largest Medicaid program, serving 7.5 million people.

The transfer of California’s Medicaid Management Information System, or MMIS, to Xerox is considered a major milestone under a 10-year, $1.6 billion contract signed in 2010 by ACS, which was acquired by Xerox in February 2010 and now goes to market under the Xerox brand. Since assuming operational responsibility in October 2011, the company has processed more than 90 million claims totaling $7.5 billion.

“This important change advances our goal of improving delivery of services while also increasing the efficiency of programs,” said Toby Douglas, director, California Department of Health Care Services.

Xerox will enhance the current MMIS by making it more efficient and giving the state more control over how it pays health care providers including physicians, pharmacies and hospitals.

The next milestone will be when Medi-Cal moves to a new MMIS called Health Enterprise, which will give California flexibility to even more precisely and quickly pay claims, and prevent fraud and abuse. Health Enterprise meets Medicaid Information Technology Architecture (MITA) standards so the state can maximize federal funding.

“Our long-term partnership with California is designed to give the state innovative health care tools at a time when agencies are looking for ways to make the most of their budget dollars,” said Will Saunders, group president, Government Healthcare Solutions, Xerox. “Our successful takeover of the system means the state can continue to make quality of care a top priority.”

Xerox operates Medicaid systems for 11 other states, the District of Columbia and the U.S. Department of Labor and annually processes more than 570 million Medicaid claims and $50 billion in payments.

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