ACS to upgrade Alaska Medicaid system

Affiliated Computer Services Inc. will design, build and manage a new Medicaid management information system for the Alaska Health and Social Services Department under a 10-year contract that could be worth as much as $130 million.

The Dallas-based business process outsourcing and information technology company will provide a broad range of Medicaid management services for Alaska, including claims processing, operations call center support, decision support and healthcare analytics, pharmacy support, and other operational support.

ACS will replace the state's antiquated computer system, which cannot keep up with the escalating number of Medicaid claims. Since the current MMIS system was installed in 1987, the number of Alaskans enrolled in Medicaid has more than tripled, from almost 41,600 in 1987 to about 132,000 in 2006, ACS said.

The new Medicaid system will also simplify electronic billing and payment for doctors.

Alaska will receive ACS' Health Enterprise solution, a set of sophisticated applications and data analytics that administer a range of Medicaid services, such as member and provider management, waivers, managed care, disease management, pharmacy programs, eligibility, claims processing and third-party liability.

Sierra Systems Group Inc., a Vancouver, British Columbia, provider of healthcare business consulting, technology and application change management solutions, is partnering with ACS on the project.

ACS ranks No. 58 on Washington Technology's 2007 Top 100 list of the largest federal government prime contractors.