DHSS Press Release

DELAWARE MEDICAID IS FIRST IN NATION TO BE HIPAA-COMPLIANT

New Delaware Medicaid System, developed by DHSS and EDS, earns U.S. certification

Delaware's new Medicaid Management Information System, designed, implemented and managed by EDS and Delaware Health and Social Services (DHSS), has received full federal certification from the Centers for Medicare and Medicaid Services (CMS).

"In addition to helping make Delaware Medicaid the first HIPAA-compliant program in the nation, this newly certified system is an important advantage for Delaware taxpayers because it will help control Medicaid's costs without cutting services," DHSS Secretary Vincent P. Meconi said. "Providers of medical services will receive their payments more efficiently, clients will continue to receive excellent care, and tax dollars will remain focused on services rather than administration and paperwork."

The certification confirms that the new system complies with all applicable federal standards and requirements and is the last hurdle for Delaware to receive full reimbursement of federal costs to develop the new system. The certification also comes on the heels of the successful implementation by DHSS and EDS of new technology that enabled Delaware to become the first state to comply with the federal Health Insurance Portability and Accountability Act (HIPAA).

"By working together, DHSS and EDS have developed a world-class Medicaid system to speed claims processing and hold down costs," said Kay Holmes, DHSS administrator of managed care and quality assurance.

"We have delivered on our promise to the taxpayers of Delaware by meeting or exceeding all applicable federal standards, requirements and deadlines," said Al Edmonds, president, EDS U.S. Government Solutions. "This system processes electronic claims in a matter of seconds and pays them, on average, in less than seven days, while being fully HIPAA compliant."

"This system sets a new standard in Medicaid claims processing through greater efficiency and improved service to healthcare providers and their patients as well as the taxpayers of Delaware," said John Engler, president of EDS State and Local Government.

The Delaware system "incorporates HIPAA requirements, a commendable accomplishment which was achieved in July 2002, 15 months ahead of the compliance deadline," CMS wrote in its certification letter.

EDS has managed the Medicaid program for DHSS since 1989. The new system, developed over the past two years and based on EDS' E.business Exchange translator, handles claims and financial processing, eligibility verification, pharmacy benefits management and third-party insurance collection.

Today, the system processes more than 6 million claims a year from healthcare providers and has saved the state more than $2.4 million through improved drug utilization reviews alone.

About EDS

EDS, the premier global outsourcing services company, delivers superior returns to clients through its cost-effective, high-value services model. EDS' core portfolio comprises information-technology and business process outsourcing services, as well as information-technology transformation services. EDS' two complementary, subsidiary businesses are A.T. Kearney, one of the world's leading high-value management consultancies, and PLM Solutions, a leader in product design and production line management software. With 2002 revenue of $21.5 billion, EDS is ranked 80th on the Fortune 500. The company's stock is traded on the New York (NYSE: EDS) and London stock exchanges. Learn more at www.eds.com.

Delaware Health and Social Services is committed to improving the quality of the lives of Delaware's citizens by promoting health and well-being, fostering self-sufficiency, and protecting vulnerable populations.