Confirmation of major new contract to support US healthcare eligibility 5 August 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 For further information please contact Serco: Stuart Ford, Head of Investor Relations T +44 (0) 1256 386 227 Marcus De Ville, Head of Media Relations T +44 (0) 1256 386 226 About Serco Serco is a FTSE 100 international service company, which combines commercial know-how with a deep public service ethos. Around the world, we improve essential services by managing people, processes, technology and assets more effectively. We advise policy makers, design innovative solutions, integrate systems and - most of all - deliver to the public. Serco supports governments, agencies and companies who seek a trusted partner with a solid track record of providing assured service excellence. Our people offer operational, management and consulting expertise in the aviation, BPO, defence, education, environmental services, facilities management, health, home affairs, information and communications technology, knowledge services, local government, science and nuclear, transport, welfare to work and the commercial sectors. More information can be found at www.serco.com END -0- Aug/05/2013 06:00 GMT
SERCO GROUP PLC: Confirmation of major new contract in the US
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