MAXIMUS to Provide Program Continuity for Texas HHS Commission

MAXIMUS, a leading provider of government services, announced today that the Company is in the process of executing separate agreements with the Texas Health and Human Services Commission (HHSC) to administer a long-term Medicaid Enrollment Broker (EB) program and to provide support services to maintain program continuity on the State’s Children’s Health Insurance Program (CHIP) on an interim basis.
 
The State announced today that it would begin winding down its contract with the Texas Access Alliance. Details regarding the HHSC announcement may be found at: http://www.hhs.state.tx.us/news/release.shtml

The Company is working with HHSC to finalize the terms of the agreements. The contract terms are expected to be finalized shortly and to be accretive when effective. MAXIMUS has successfully managed the State’s EB operations since 1997 and currently expects that it will continue running those operations through June 2010. Separately, under an interim agreement, MAXIMUS will provide operational support for CHIP, including systems and staffing to process applications.

Richard Montoni, President and Chief Executive Officer, stated, "MAXIMUS has had a long and successful relationship with the State of Texas. We welcome the opportunity to establish a direct contractual agreement with the State under an appropriate financial structure. We look forward to working with the State to achieve their operational objectives in the areas of health and human services on behalf of their constituents."

MAXIMUS remains in arbitration proceedings with Accenture, the former prime contractor on the Texas Access Alliance, and cannot provide any update on this process at this time. The Company cannot predict the outcome of the arbitration proceeding or the impact it may have on its operating results or financial condition.