Serco awarded CMS contract worth $690 million

Serco Group Plc

Serco Group plc (LON:SRP) has been awarded a contract by the US Department of Health and Human Services, Centers for Medicare & Medicaid Services (CMS) to continue to support eligibility determinations for citizens purchasing health insurance through the Federal Health Insurance Exchanges.  The 4 year and 7-month contract has a one-year base period and four option periods, and is due to start on 1 July 2023.  The estimated total value to Serco, subject to workload volumes, is approximately $690 million if all option periods are exercised.

CMS serves the public as a trusted partner and steward, dedicated to advancing health equity, expanding coverage, and improving health outcomes, and now oversees the health coverage of more than 150 million people.

Serco will assist qualified citizens to receive health insurance through the Affordable Care Act by taking a unified approach to operational services, customer support, data analytics, and program management, all aimed at continuously optimising service delivery and program integrity.

Mark Irwin, Serco Group Chief Executive, said: ‘We are grateful for the trust CMS has placed in us to continue to deliver these vital eligibility services building on the value-based relationship we have formed since commencing these services in 2013. During this time, we have assisted tens of millions of Americans on their health journey, and as an impact partner to CMS, we are fully committed to continuous improvement in citizen experience and delivering our case management expertise in support of the strategic goals of our customer.’

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