HMS, a wholly owned subsidiary of HMS Holdings Corp. (NASDAQ:HMSY), announced today that it has been awarded a contract by the Commonwealth of Virginia, Department of Medical Assistance Services (DMAS), to provide a customized Medicaid Fraud and Abuse Detection System to detect fraud, waste, and abuse through data modeling algorithms that analyze claims and provider behavior.

The contract runs for one year and includes two one-year renewal options.

"HMS has combined a number of our program integrity core competencies into a single, customized, state-of-the-art fraud and abuse detection system for Virginia. We value the opportunity to work with the Commonwealth to help maximize the integrity and efficiency of its Medicaid program," said Maria Perrin, HMS's Chief Business Officer.

HMS has provided cost containment services to DMAS since 1987. This contract represents HMS's first fraud and abuse engagement with the Commonwealth.

About HMS

HMS is the nation's leader in coordination of benefits and program integrity services for healthcare payers. HMS's clients include health and human services programs in more than 40 states; commercial programs, including commercial plans, employers, and over 135 Medicaid managed care plans; the Centers for Medicare and Medicaid Services (CMS); and Veterans Administration facilities. As a result of the company's services, clients recovered over $2.5 billion in 2011, and saved nearly $7 billion through the prevention of erroneous payments.

HMS Holdings Corp.
Media relations:
Francesca Marraro, (212) 857-5442
fmarraro@hms.com
or
Investor relations:
Christine Saenz, (212) 857-5986
csaenz@hms.com