ACS Wins Tennessee Work

ACS Inc. of Dallas and Magellan Behavioral Health Services Inc. of Columbia, Md., have agreed that Magellan will outsource its administrative claims processing functions to ACS for the state of Tennessee.

ACS will develop and operate a comprehensive managed care information system for Magellanís TennCare contract, said ASC officials March 8.

Magellan, which may outsource other customers to ACS, declined to disclose the value of the TennCare agreement.

TennCare is a mental health and substance abuse program that Magellan has managed for Tennessee for the past six years, said Erin Somers, a Magellan spokeswoman. The program serves Medicaid recipients and uninsured residents in Tennessee, she said.

Magellan has a mainframe-based system with an optional graphical user interface. In addition, ACS will establish an administrative claims-processing organization to support Magellan and operate the system.
Magellan has contracts with employers, health-care plans and insurance companies, and state and local governments. It currently has about seven state and local contracts, said Somers.