After penning an alliance with CHOICE Administrators Exchange
Solutions for delivering a cloud-based Health Insurance Exchange
(HIX) solution, office automation and equipments major
) is in the news again.
The company is going to renew its relationship with New Mexico's
Human Services Department for running and upgrading the state's
health care delivery mechanism to Medicaid recipients.
The contract awarded to Xerox is worth $105 million and is
slated to run for a period of 58 months. In addition, the contract
has three renewal options of one year each. The contract renewal
does not come as a surprise since Xerox has managed New Mexico's
Medicaid services for almost two decades.
Under the refreshed terms, the company will not only continue
its management of the state's Medicaid Management Information
System (MMIS), but also work towards upgrading it. Last year, Xerox
had processed 23 million claims while managing $3.5 billion in
The new deal will also help Medicaid recipients to have
increased participation in the program as the Medicaid Web portal
will be revamped. Users will be able to analyze their eligibility
data along with placing requests for replacement identity cards and
look for providers within a hundred mile radius from their
addresses or ZIP codes. This will certainly be a welcome change for
recipients as they currently do not have access to such
Moreover, the upgraded portal will enable real-time processing
of claims as health care providers will be able to submit
enrollment applications online. This will eliminate the pile up of
enrollment forms and streamline the entire process. Also, health
care providers will come to know whether the claim has been
approved for payment instantaneously.
Xerox is focused on bringing innovation in the health care
sector and currently administers Medicaid systems for another 11
states along with the District of Columbia and the U.S. Department
of Labor. The company processes over 570 million Medicaid claims
and handles $50 billion in payments every year.
Xerox, which competes with
), maintains a Zacks #3 Rank, which translates into a short-term (1
to 3 months) Hold rating. Currently, we have a long-term Neutral
recommendation on the shares of Xerox.
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