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MEDI-CAL CONTRACT AWARDED TO EDS

 MEDI-CAL CONTRACT AWARDED TO EDS
 SACRAMENTO, Calif., Sept. 21 /PRNewswire/ -- EDS (NYSE: GME) today


announced that it has been selected by the California Department of Health Services (DHS) to serve as the state's technology partner for the Medi-Cal program. The award, valued at $399 million, includes a four- year contract with three one-year options. EDS has held the state's contract since 1987, maintaining responsibility for the operation and enhancement of the California Medi-Cal Management Information System (CA-MIS), all claims processing and provider relations functions, and a variety of cost containment measures.
 "Over the last five years, EDS has worked closely with the Department to maximize technology, control costs and improve the level of services available to the provider community," said Merv Forney, vice president of EDS' State Operation Division. "Today's announcement ensures that our current programs will continue without disruption, and that we can begin immediately building the technology infrastructure necessary to carry the Medi-Cal program into the 21st century."
 Medi-Cal is the largest Medicaid program in the nation, providing health care services to 4.9 million people at an annual cost of $13 billion. Under the new contract, EDS and DHS will work together to increase the use of technology within the program, thereby improving the speed, efficiency and accuracy of claims processing. Technology highlights include an on-time pharmacy claims processing system, on-line eligibility verification systems and expanded software support for managed care initiatives. Programs to encourage greater provider participation also will continue to be emphasized.
 Program improvements over the last five years of the EDS contract have led to the completion of 16 cost containment projects that are currently saving the Department approximately $20 million per year. Although the number of claims processed each year continues to grow, average processing time has decreased by 54 percent since 1988. In an effort to design a more open, provider-oriented program, the number of hotlines, workshops and on-site visits have increased significantly. Small providers unaccustomed to Medi-Cal billing processes have been the greatest beneficiaries of these changes, with improved training, better software and more personalized assistance available to encourage participation in the program.
 In addition to its work in California, EDS has more than 20 years of experience with the Medicaid program and currently processes claims in 16 states. EDS supports the Medi-Cal program from its offices and information processing center in Rancho Cordova.
 EDS has operations in 30 countries, employs more than 70,000 people, and is the leader in applying information technology to meet the needs of business and government around the globe. The company's stock is traded on the New York Stock Exchange under the symbol GME. Revenues for 1991 were $7.1 billion.
 -0- 9/21/92
 /CONTACT: Carleen LeVasseur of EDS, 916-264-1303/
 (GME) CO: EDS ST: California IN: CPR SU: CON


TB -- SF007 -- 1805 09/21/92 15:33 EDT
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Date:Sep 21, 1992
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