EDS gets contract extension from Medicare

Electronic Data Systems Corp. has won a series of contract modifications and a two-year extension of its Medicare Part B Standard System Consolidation contract with the Centers for Medicare & Medicaid Services. The changes are anticipated to generate more than $40 million in revenue.

The Standard System Consolidation contract has two basic functions ?provide systems maintenance for the Multi-Carrier System, and move Medicare Part B claims processing to the system. By consolidating processing onto a standard platform, CMS will be able to proceed with its Medicare Information Technology Modernization and Medicare Contractor Reform strategies.

EDS originally won the consolidation contract in 1997; the contract has been extended to Dec. 31, 2005. Under the contract, EDS provides the standard Medicare Part B system and the associated ongoing user support, production support and system maintenance.

In addition, the EDS team supplies application and Medicare program expertise to CMS' Healthcare Integrated General Ledger Accounting System implementation team. Once operational, the system will enable CMS to comply with the Federal Financial Management Improvement Act of 1996 and the Joint Financial Management Improvement Program guidelines in implementing accounting systems.

EDS also was tasked with moving Medicare carriers from the five other Medicare Part B systems to the EDS system. Four of the systems have been retired, and the last system and the remaining Part B workloads will be moved to the MCS platform by August 2005.

Approximately 78 percent of all Medicare Part B claims, excluding those for durable medical equipment, are processed using EDS' MCS system.

Headquartered in Plano, Texas, EDS generated 2002 revenue of $21.5 billion and employed about 137,000 people worldwide. The company was ranked No. 9 on the Washington Technology 2003 Top 100 federal prime contractors.