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Confirmation of major new contract to support US healthcare

Published: 5 Aug 2013

Serco Group plc (Serco), the international service company, confirms the award of a new contract by the United States Department of Health and Human Services' Centers for Medicare & Medicaid Services (CMS) to provide processing support for new health benefit exchanges. Serco will provide and manage labour to review, verify and process applications on a 'cost-plus-fixed-fee' basis. The contract, which is now in effect, has a one-year base period valued at approximately $115m with further four one-year options. Including all potential option periods and optional tasks, the contract has a potential total contract value of approximately $1.25bn.

The Patient Protection and Affordable Care Act introduced a series of consumer choices and insurance competition through a Federally Facilitated Marketplace (FFM). The exchange is a state-based marketplace that accepts applications and determines eligibility for applications, as well as participation and enrolment into affordable health insurance and insurance affordability programs. The Affordable Care Act directs CMS to establish and operate marketplaces for states that do not elect to establish their own.

Serco will manage approximately 1,500 staff in the US that will support CMS with the routing, automated processing, reviewing, and troubleshooting of applications submitted for enrolment into a Qualified Health Plan. Serco will also provide records management and verification support.

The contract award builds on Serco's strong capabilities in records management and processing for the US Government, which include the classifying of patent applications for the US Patent and Trademark Office and the processing of visa applications at the US Department of State's National Visa Center.

Christopher Hyman, Chief Executive of Serco Group plc, said: "We are delighted to be awarded such an important contract to support the Affordable Care Act in the United States and our Americas division looks forward to working with the Centers for Medicare & Medicaid Services. We have extensive experience in records management and processing for the US Government, and following the award of the Virginia transport management contract earlier this year we are making excellent progress in our strategy to further 
broaden the portfolio." Ends