HHS awards General Dynamics $80M for payment systems

By Mike Miliard
10:33 AM

The Department of Health and Human Services has awarded General Dynamics Information Technology's ViPS - part of the General Dynamics Health IT Solutions business sector - a contract to support the Department of  Early Retiree Reinsurance Program (ERRP). The total contract is worth $80.3 million over four years if all options are exercised.

General Dynamics Information Technology's Health IT Solutions sector will develop and deploy the ERRP application and payment systems, as well as support all ERRP operational departments. Under the award, the company is responsible for overall software design, development and business application support, which includes a public website and educational outreach programs as well as data center infrastructure and administration.

"Information technology will play an instrumental role in implementing healthcare reform," said Art Lehrer, vice president and general manager of Health IT Solutions for General Dynamics Information Technology. "The ERRP is a great example of how IT can support the healthcare system and represents one of the first major initiatives assigned to <a href="/directory/department-health-human-services-hhs" target="_blank" class="directory-item-link">HHS under the new legislation."

Lehrer continued, "Every aspect of ERRP – employer application processing, claim requests, reimbursement processing, data management and security, and claims auditing – relies on IT to ensure that sponsors of retiree health benefits receive reimbursements in a timely and cost effective manner. We are proud to bring our experience providing technological and operational support from other federal healthcare programs to bear on this critical effort."

"General Dynamics Information Technology is proud to bring our experience providing IT technology and operational support for the Retiree Drug Subsidy (RDS) Program to bear on this important initiative," said Marcus Collier, senior vice president at General Dynamics Information Technology. "We look forward to deepening our partnership with HHS on this cornerstone initiative."

The company's Health IT Solutions sector will support HHS's Office of Consumer Information and Insurance Oversight (OCIIO), administrator of the ERRP program. Launched on June 1, 2010 under the Affordable Care Act, ERRP encourages the retention of employer-sponsored health benefits for early retirees, spouses and dependents by providing accepted employers with financial relief. Employers may receive 80 percent reimbursement for medical claims for retirees age 55 and older who are not yet eligible for Medicare.

OCIIO was created to aid HHS implementations of healthcare-reform legislation provisions and is responsible for ensuring compliance with the new insurance market rules, overseeing the new medical loss ratio rules, assisting states in reviewing insurance rates and providing guidance and oversight for state-based insurance exchanges. It is also responsible for compiling and maintaining data for a public Internet portal providing information on insurance options.