The Kansas Health Policy Authority is expected soon to announce a change in contractors at its Kansas Family Medical Clearinghouse.
“KHPA is in final negotiations with a company other than Maximus,” said Chris Howe, director at the state Division of Purchases.
Maximus, a Reston, Va., company with anticipated 2009 revenues of approximately $750 million, has managed the clearinghouse since 1998.
The clearinghouse processes about 85 percent of the state’s Medicaid and State Children’s Health Insurance Program applications.
Howe said the six-year contract is for about $51 million.
Three companies bid on the clearinghouse contract, which was up for renewal.
Peter Hancock, a spokesman for the health policy authority, declined comment, noting a “new contract has not been finalized.”
A source familiar with the clearinghouse told KHI News Service the new contractor will be Policy Studies Inc. (PSI), a Denver-based company with health-related contracts in Georgia, Iowa, Maryland, Missouri, Pennsylvania and Tennessee.
PSI administers the SCHIP programs in Tennessee, Georgia and Iowa.
James Dunn, a spokesman for PSI, declined comment.
The change in contractors comes at a time when the health policy authority has warned legislators that recent budget and staffing cuts have hindered the clearinghouse’s ability to keep pace with the increasing numbers of HealthWave applications.
Already, more than 11,000 HealthWave applications have been at the clearinghouse for 30 days or more.
HealthWave, a blend of Medicaid and SCHIP, is the state’s health insurance program for children in low- and modest-income families.
-Dave Ranney is a staff writer for KHI News Service, which specializes in coverage of health issues facing Kansans. He can be reached at dranney@khi.org or at 785-233-5443, ext. 128.