EDS Wins $91 Million Contract Extension From Kansas MedicaidEDS Wins $91 Million Contract Extension From Kansas Medicaid

Electronic Data Systems said Thursday that it has received a contract extension worth $91.7 million from Kansas Medicaid to continue supplying the state with claims processing services.

Under the extension, EDS will supply services to the Kansas Health Policy Authority through June, 2011. EDS originally signed a six-year deal with the authority in February, 2002. To date, EDS has converted Kansas' legacy-based Medicaid Management Information System to its own EDS interChange MMIS. The system went live in October 2003.

The system features a fraud and abuse detection feature called Surveillance and Utilization Review Profiler and a Web-based interface designed to improve the efficiency of claims processing. Medicaid fraud was expected to cost the state of Kansas $2.2 billion in 2006, according to the Kansas City Star. The program serves about 300,000 state residents annually.

EDS leads all outsourcers in Medicaid and Medicare process management services, administering about $95 billion in benefits per year, according to the company.