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Back To Vidyya Healtheon/WebMD To Help Health Care Financing Administration (HCFA) Develop New Medicare Managed Care System

Project Worth $21 Million To Vendors

Healtheon/WebMD announced on 06 June 2000, that the company will assist in the development and implementation of the Health Care Financing Administration's (HCFA) new Medicare Managed Care System (MMCS). The MMCS will process enrollment and payment transactions for more than 7 million Medicare beneficiaries who are enrolled in 427 Medicare+Choice organizations (MCOs) -- computing payments that total over $3 billion per month. HCFA awarded a task order for the project to Computer Sciences Corporation (CSC), which awarded subcontracts to Healtheon/WebMD, SAIC and Maricon Systems Inc. for the four-year project

The MMCS project is comprised of three major stages that will deliver beneficiary enrollment, managed care organization payment and data warehouse capabilities to meet HCFA business requirements. Healtheon/WebMD's strategic development division will lead the web-technology and user interface aspects of the project.

HCFA previously had selected Healtheon/WebMD and CSC to assess the current state of its legacy managed care systems. The Healtheon/WebMD-CSC assessment concluded that retaining the legacy system was not a viable solution based on current and future business needs and that a redesign of HCFA's managed care system was necessary.

"This project is an important win for Healtheon/WebMD because it continues our successful partnership with HCFA and CSC and underscores our ability to support the Medicare environment," said Dennis Drislane, senior vice president for Healtheon/ WebMD. "We are pleased to have been selected to work with HCFA and to have the opportunity to use our expertise in Internet-based solutions, user interface design and object-based development to assist the government in supporting its diverse healthcare requirements."

About HCFA

The Health Care Financing Administration (HCFA) is a federal agency within the U.S. Department of Health and Human Services. HCFA runs the Medicare and Medicaid programs -- two national health care programs that benefit about 75 million Americans. And with the Health Resources and Services Administration, HCFA runs the Children's Health Insurance Program, a program that is expected to cover many of the approximately 10 million uninsured children in the United States. HCFA is the largest payer in the United States, spending over $360 billion annually on healthcare services. For more information visit

About Healtheon/Web/MD

Healtheon/WebMD is using the Internet to facilitate a new system for the delivery of healthcare, resulting in a single, secure environment for all communications and transactions that will enable a more efficient and cost effective healthcare system. For more information visit

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Editor: Susan K. Boyer, RN
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