Alabama re-ups EDS for Medicaid services

Electronic Data Systems Corp. has won a three-year, $40 million contract to continue managing Alabama's Medicaid program, the company announced today.

The contract, which includes two one-year options, may be worth as much as $63 million if all options are exercised.

Under the contract, EDS of Plano, Texas, will be responsible for providing medical services for low-income children and adults throughout the state.

The company operates a statewide network to get information to health care professionals while helping deliver claims processing and payments to health care service providers and other providers.

The company processes more than 20 million medical claims for 700,000 Medicaid recipients and provides payment to more than 15,000 Alabama Medicaid providers each year.

EDS is a provider of information technology and business process outsourcing services as well as IT transformation services. The company has more than 137,000 employees and annual sales of $21.5 billion.