Health Management Systems, Inc Release: HMS Wins Medicaid Managed Care Contract In Michigan

NEW YORK, Oct. 12 /PRNewswire-FirstCall/ -- Health Management Systems, Inc. has won a contract to provide coordination of benefits services for CAPE Health Plan, a health maintenance organization that provides care for more than 77,000 Medicaid recipients in Michigan.

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On behalf of CAPE, HMS will apply its proprietary technology and databases to recover expenditures from health insurance sources that are liable for care of the plan’s members.

Medicaid, the federal/state health care initiative for low-income Americans, will cost the nation more than $300 billion in 2004, and is the most rapidly growing component of spending by states. For this reason, many states rely upon managed care plans such as CAPE to improve the efficiency of Medicaid services.

HMS, a wholly owned subsidiary of HMS Holdings Corp. , helps government health care programs contain costs by recovering expenditures from liable third-party sources of health insurance. Managed care plans represent a growing portion of HMS’s client base. Since signing an initial managed care contract last year, HMS has won business with six plans in 2004.

“We believe that HMS will significantly enhance CAPE’s third-party liability recovery process and create a more comprehensive approach in coordinating benefits,” said Nancy Wanchik, CAPE president and chief operating officer.

HMS President William Lucia added, “Our business with Medicaid managed care plans continues to accelerate, in direct response to their growing need for risk-free, innovative revenue-producing strategies. HMS has emerged as the leader in revenue recovery for managed Medicaid because we are continually refining our services to meet the unique requirements of this market.”

ABOUT HMS

Health Management Systems, Inc. is a national leader in revenue recovery and cost containment for government health care programs. HMS has recovered more than $2.35 billion from third parties and other funding sources on behalf of its clients, and today has active contracts in more than 20 states. HMS’s solutions are non-duplicative and require no up-front funding or additional agency resources. HMS, a wholly owned subsidiary of HMS Holdings Corp. (listed on NASDAQ under the symbol HMSY), is headquartered in New York and operates offices nationwide.

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Health Management Systems, Inc.

CONTACT: Investor Relations - Laura Jo Snyder-Cruz, +1-212-857-5986,ir@hmsy.com; or Media - William Hall, +1-212-857-5407, whall@hmsy.com, bothfor Health Management Systems, Inc.