State of Delaware Awards HP $50 Million Medicaid Contract Renewal

Agreement Extends 23-Year Relationship as State's Fiscal Agent

PALO ALTO, CA--(Marketwire - Jul 9, 2012) - HP Enterprise Services today announced that the Delaware Division of Medicaid & Medical Assistance (DMMA) has signed a $50 million agreement for HP (NYSE: HPQ) to continue providing Medicaid fiscal-agent services for three years.

Under terms of the contract, HP will continue managing the state's Medicaid Management Information System (MMIS), which was certified by the federal Centers for Medicare & Medicaid Services in 2003 as the first state Medicaid system to comply with the landmark Health Insurance Portability and Accountability Act (HIPAA). HP also will continue providing a wide range of Medicaid services, including pharmacy and medical claims processing, eligibility verification, call-center support and administration of the state's drug rebate program.

The agreement, which takes effect July 1 and includes two one-year extension options, continues a relationship that dates to 1989. HP currently processes more than 17 million claims a year for more than 8,800 healthcare providers across the state.

"As our Medicaid partner for more than two decades, HP has supported numerous initiatives and continues to work closely with us to address Delaware's evolving healthcare needs," said Rosanne Mahaney, director, Delaware Division of Medicaid & Medical Assistance. "The complexity and growth of modern healthcare requires a knowledgeable support team with timely and creative solutions as well as efficient and reliable delivery. HP has been there for Delaware."

During the past year, HP has helped the state track and administer millions of dollars in federal incentive payments enabling Delaware healthcare providers to adopt electronic health records. Delaware was among the first states to join the HP-designed Medical Assistance Provider Incentive Repository (MAPIR), which earlier this year received the National Governors Association's 6th Annual Public-Private Partnership Award. The 13-state collaborative has tracked more than $400 million in incentives to hospitals, physicians, dentists, nurse practitioners, pharmacists and other eligible providers.

"Faced with rapidly changing federal healthcare mandates as well as growing Medicaid populations, states need modern, flexible technology to continue providing quality healthcare services for its most vulnerable citizens," said Susan Arthur, vice president, U.S. Health and Life Sciences Industry, Enterprise Services, HP. "HP will continue to provide the technology and solutions to help Delaware remain at the forefront of healthcare innovation to support quality healthcare."

HP is the nation's largest provider of Medicaid process-management services, supporting MMIS in 21 states. HP performs 2.4 billion healthcare transactions annually, including 1 billion healthcare claims. HP's U.S. healthcare experience spans the health plan, government and life science communities.

HP's premier Europe, Middle East and Africa client event, HP Discover, takes place Dec. 4-6 in Frankfurt, Germany.

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