-First CMS Contract Award Under COBRA Provisions of the Recovery Act-

MAXIMUS (NYSE:MMS) announced today that its Federal Services subsidiary has been awarded a one-year contract by the Centers for Medicare & Medicaid Services (CMS) to assist with expedited reviews and information services regarding COBRA premium assistance benefits provided under the American Recovery and Reinvestment Act of 2009 (Recovery Act). The contract is valued at approximately $2 million.

Under the contract, MAXIMUS Federal will review requests for expedited reviews and make recommendations — subject to CMS’s review and final action — as to whether certain individuals denied premium assistance are eligible for the benefit. MAXIMUS Federal will also answer questions from the public about the premium assistance available under the Recovery Act and the expedited review process through a website (www.continuationcoverage.net) and toll-free helpline (1-866-400-6689). MAXIMUS Federal will direct callers, as appropriate, to the Department of Labor, which handles cases involving private employers with 20 or more employees.

“This contract represents the first award made by CMS under the Recovery Act’s COBRA provisions, and we are excited to be the provider of choice for CMS,” commented MAXIMUS CEO Richard Montoni. “This award further demonstrates our longstanding experience and industry-leading expertise in health appeals and reconsiderations. Additionally, we are eager to support our clients as they navigate the challenges surrounding the utilization and implementation of Recovery Act funds.”

To help displaced workers maintain health care coverage for themselves and their families, the Recovery Act provides a 65 percent subsidy for health insurance premiums for workers who have elected COBRA after they have been involuntarily terminated from their jobs. This premium assistance benefit potentially can last for up to 9 months. When a group health plan, employer or insurer denies an individual access to premium assistance under the Recovery Act, he or she may request expedited review of the denial. Under the law, CMS handles appeals for government employees (federal and non-federal) under COBRA, as well as for those individuals covered by comparable “State mini-COBRA” programs that apply to group health plans offered by private employers with fewer than 20 employees).