Serco Group PLC Serco SEA - secures CMS contract valued at $900m (4245Q)
June 06 2018 - 2:01AM
UK Regulatory
TIDMSRP
RNS Number : 4245Q
Serco Group PLC
06 June 2018
Serco secures US health insurance eligibility support contract
valued at $900m
6 June 2018
Serco Group plc
LEI: 549300PT2CIHYN5GWJ21
Serco Group plc ('Serco' or 'the Group'), the international
service company, has received formal notification from the US
Department of Health and Human Services, Center for Medicare &
Medicaid Services (CMS), that Serco has been awarded a contract to
continue to support eligibility determinations for citizens
purchasing health insurance through the Federal Health Insurance
Exchanges. The contract has a one-year base period and four
one-year option periods, with an estimated total value to Serco,
subject to workload volumes, of approximately $900m if all option
years are exercised.
Serco's role is focused on delivering effective and efficient
verification of applicants' eligibility for health insurance
benefits as citizens enrol for, or renew, a Qualified Health Plan.
A wide variety of consumer interactions are processed by Serco
using our deep case management and process expertise, as well as
our world-class Eligibility Support Platform which we have
developed specifically for this demanding work. Tasks include:
processing paper-based applications; matching applicants' data
through secure electronic interfaces and reconciling any
inconsistencies; verifying supporting documentation for
eligibility; performing outbound customer contact services; and
quality assurance and data analytics to support the integrity of
the overall programme.
Serco has been providing CMS with processing support since July
2013. The current five-year contract ends on 30 June 2018 and
revenue for the last 12 months has been approximately $210m. Our
operation of the contract over the last five years has met the
challenges of evolving federal policy requirements, as well as
adapting to the changes in volumes, consumer contact channels and
the timing and cyclicality of the Open Enrolment Periods. The new
contract is forecast to deliver cost savings for CMS against the
previous contract as we develop further process efficiencies and
technological improvements; the proportion of the contract
delivered on a fixed price basis has also been increased.
Rupert Soames, Serco Group Chief Executive, said: "Serco has
developed a strong working partnership with CMS to provide it with
vital consumer eligibility services. Over the past five years we
have assisted millions of Americans by adjudicating their health
insurance applications, using a combination of skilled staff and
process automation to drive down costs and protect programme
integrity. We look forward to delivering additional innovation and
continued transformation of the operations, as we further develop
the automated processing platforms and staff expertise to provide
even better value and efficiency to citizens."
This announcement contains inside information.
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 leading provider of public services. Our customers
are governments or others operating in the public sector. We gain
scale, expertise and diversification by operating internationally
across five sectors and four geographies: Defence, Justice &
Immigration, Transport, Health and Citizen Services, delivered in
UK & Europe, North America, Asia Pacific and the Middle
East.
More information can be found at www.serco.com
Forward looking statements
This announcement contains statements which are, or may be
deemed to be, "forward looking statements" which are prospective in
nature. All statements other than statements of historical fact are
forward looking statements. Generally, words such as "expect",
"anticipate", "may", "should", "will", "aspire", "aim", "plan",
"target", "goal", "ambition" and similar expressions identify
forward looking statements. By their nature, these forward looking
statements are subject to a number of known and unknown risks,
uncertainties and contingencies, and actual results and events
could differ materially from those currently being anticipated as
reflected in such statements. Factors which may cause future
outcomes to differ from those foreseen or implied in forward
looking statements include, but are not limited to: general
economic conditions and business conditions in Serco's markets;
contracts awarded to Serco; customers' acceptance of Serco's
products and services; operational problems; the actions of
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the types of enforcement action pursued and the nature of remedies
sought or imposed; the receipt of relevant third party and/or
regulatory approvals; exchange rate fluctuations; the development
and use of new technology; changes in public expectations and other
changes to business conditions; wars and acts of terrorism; and
cyber-attacks. Many of these factors are beyond Serco's control or
influence. These forward looking statements speak only as of the
date of this announcement and have not been audited or otherwise
independently verified. Past performance should not be taken as an
indication or guarantee of future results and no representation or
warranty, express or implied, is made regarding future performance.
Except as required by any applicable law or regulation, Serco
expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward looking statements
contained in this announcement to reflect any change in Serco's
expectations or any change in events, conditions or circumstances
on which any such statement is based after the date of this
announcement, or to keep current any other information contained in
this announcement. Accordingly, undue reliance should not be placed
on the forward looking statements.
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END
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