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Computer Sciences Corporation (CSC) Wins $384 Million Contract To Support Centers For Medicare And Medicaid Services


10/19/2005 5:12:58 PM

EL SEGUNDO, Calif., Sept. 28 /PRNewswire-FirstCall/ -- A MemberHealth Inc. team that includes Computer Sciences Corporation has been selected by the Centers for Medicare and Medicaid Services (CMS) to establish one of 10 national prescription drug benefit plans in accordance with the Medicare Modernization Act (MMA), Part D. The value of the contract to CSC is approximately $384 million over eight years.

The drug benefit plan, called the Community Care Rx (CCRx) program, is an initiative that expands the current CMS Drug Discount Card pilot program, and offers beneficiaries the choice of three nationwide prescription drug programs under Part D.

The new agreement follows and is incremental to a $46 million agreement signed in 2004, under which CSC, teamed with MemberHealth, manages the CMS Drug Discount Card pilot program through May 2006.

Under terms of the new agreement, CSC will provide the CCRx program with support services, including call center operation, enrollment processing and financial management. In addition, CSC will provide compliance management and reporting services to satisfy guidelines of the MMA, the Privacy Act and the Health Insurance Portability and Accountability Act of 1996.

"We have enjoyed a solid and successful working relationship with MemberHealth over the last two years on the pilot program, and we look forward to successfully introducing the new drug benefit plan to the Medicare beneficiary community," said Ray Henry, president of CSC's Civil Systems Development organization. "CSC's exceptional blend of healthcare experience and information technology expertise make us highly qualified, and we are confident in our ability to deliver sound results to the CMS."

"I am very pleased that CSC has joined our team for the Medicare Part D initiative," said MemberHealth President and Chief Executive Officer Chuck Hallberg. "Their keen understanding of the Drug Discount Card program and tremendous ability to implement world-class solutions in a complex environment will ensure our operational success in support of this major program expansion."

Approximately 260 CSC call center professionals in Albany, N.Y., and Cleveland, Ohio, and 80 information technology (IT) and Medicare program professionals in Baltimore, Md., and Cleveland, Ohio will perform the work on the contract.

On Dec. 8, 2003, the MMA established the Medicare Part D initiative, a voluntary prescription drug benefit for Medicare beneficiaries. Starting on Nov. 15, 2005, beneficiaries will have the option to purchase a full drug benefit plan and have their prescriptions filled at participating community-based pharmacies beginning on Jan. 1, 2006.

About MemberHealth and the Contract Team

MemberHealth, Inc. (MHI) is an Ohio corporation established in 1998 with operating headquarters in Solon. MemberHealth operates a prescription benefit management organization and operates as a risk bearing entity under the MMA. The marketing for these programs is conducted principally through three distribution channels: insurance and brokerage agencies, consumer direct marketing and through retail pharmacies.

In addition to CSC, members of the contract team include the National Community Pharmacy Association (NCPA) and Ameri-Life and Health Service. The NCPA represents nearly 25,000 independent pharmacies across the U.S. and will provide medication therapy management to millions of Medicare beneficiaries who fill their prescriptions at independent pharmacies. Ameri-Life and Health Service will provide enrollment outreach and education services in support of the CCRx program.

About CSC

Founded in 1959, Computer Sciences Corporation is a leading global IT services company. CSC's mission is to provide customers in industry and government with solutions crafted to meet their specific challenges and enable them to profit from the advanced use of technology.

With approximately 78,000 employees, CSC provides innovative solutions for customers around the world by applying leading technologies and CSC's own advanced capabilities. These include systems design and integration; IT and business process outsourcing; applications software development; Web and application hosting; and management consulting. Headquartered in El Segundo, Calif., CSC reported revenue of $14.3 billion for the 12 months ended July 1, 2005. For more information, visit the company's Web site at www.csc.com.

Computer Sciences Corporation

CONTACT: Chuck Taylor, Director, Communications and Marketing, Corporate,+1-703-641-3430, ctaylor26@csc.com, or Rich Venn, Media Relations,Corporate, +1-310-615-3926, rvenn@csc.com, or Bill Lackey, Director,Investor Relations, Corporate, +1-310-615-1700, blackey3@csc.com, all ofComputer Sciences Corporation


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