EDS wins South Carolina Medicaid system upgrade

Electronic Data Systems Corp. won a two-year, $27.2 million contract from the South Carolina Department of Health and Human Services to upgrade its Medicaid management information system, the company announced today.

The contract includes a three-year option for maintenance. About 86 percent of the contract, $22.6 million, will be paid by federal matching funds.

Under the contract, EDS of Plano, Texas, will upgrade the state's Medicare management system to meet the Oct. 16 deadline for compliance for electronic transactions under the Health Insurance Portability and Accountability Act.

Congress passed HIPAA in 1996 to improve the efficiency and effectiveness of the nation's health care system. The law sets standards for the electronic interchange of administrative and financial information for medical services. It also contains provisions to protect the security and privacy of such information.

HIPAA is designed to enhance quality, decrease medical errors, improve customer service, reduce fraud and abuse and provide significant cost savings to the health care industry, according to the company.

EDS will team with Blue Cross Blue Shield of South Carolina of Columbia to provide training to:

  • State health and human services personnel


  • Employees at Clemson University, where claims are processed


  • Doctors and other health care providers, so they understand the new system's processes and procedures and can meet the transaction requirements to comply with the law.


  • EDS provides Medicaid administrative support services to 18 states and is the administrative agent for four Medicare regions.



    About the Author

    William Welsh is a freelance writer covering IT and defense technology.

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