Washington re-ups ACS for Medicaid services

Affiliated Computer Services Inc. has won a $25.8 million contract extension from Washington to continue serving as facilities manager of the state's Medicaid program, the company announced today. The contract is for two years with a one-year option.

ACS of Dallas will handle payments processed through Washington's Medicaid management information system. The company will make several enhancements to the system, including modifying the claims processing system to be compliant with the Health Insurance Portability and Accountability Act.

The company also will serve as the electronic data interchange clearinghouse for the state to process all HIPAA transactions for the Medicaid program, the company said. HIPAA aims to protect personal health information.

To comply with the law, government and commercial organizations are required to follow specific processes for storing and transmitting health data that ensure privacy.

ACS has provided Washington with Medicaid services for more than 20 years, processing more than 35 million claims annually.

ACS, a provider of information technology and business process outsourcing services, has more than 40,000 employees and annual sales of $3.7 billion.