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HRD-78-66 1 (1978-03-09)

handle is hein.gao/gaobaawva0001 and id is 1 raw text is: RELEASED REETTCTE,) - Not to be released outside th, *% iAccour.ta g (ffiee except on the basls o specific ,.. by the Office of Congrosaional PAations LM105229 COMPrROLLER GENMAL C THE UNMED SrAT WAMIM--TOIM0 C. 20548 B-164031(3) March 9, 1978 The Honorable Henry K. Jackson Chairman, Permanent Subcommittee on Investigations Committee on Governmental Affairs United States Senate Dear Mr. Chairman: Your August 4, 1977, letter requested us to provide certain information regarding the contract between the State of Washington and Electronic Data Systems Federal Corporation (EDSF) for implementing and operating the Medicaid Management Information System (MMIS). Specifically, you asked us :o determine (1) if the lowvst technically acceptable and Lespon- sible offeror was awarded the contract, (2) if the State had assumed any responsibilities which were originally to be provided by the offeror in accordance with the request for proposals, and (3) the difference in cost between the lowest unsuccessful offeror's proposal and the cost of the contract. We reviewed the State's request for proposals; the pro- posals submitted in response to the teguest; the MMIS contract with EDSF; Department of Health, Education, and Welfare (HEW) and State documents relating to the procurement; and HEW's regulations and policies relating to MMIS and State procure- ments under Medicaid. Wa also reviewed documentation regarding the operatio.- of Washington's MMIS. SOLICITATION FOR AND EVALUATION OF PROPOSALS The objective of any MWIS is to improve tne capability of Medicaid State agencies to effectively process claims, help control utilization of services, and provide management with the necessary information for plannxing and administering the Medicaid program. States may contract with private companies to develop, install, and/or operate such a system. Section 1903(a)(3) of the Social Security Act requires Federal sharing in the costs of KMIS. HEW must pay 90 percent of the costs of developing and installing MMIS and 75 percent of MMIS operational costs. Federal regulations regarding requirements for approval of a system as an MMIS are in 45 C.F.R. 250.90, and those for State Medicaid procurement actions are in 45 C.F.R. 74. EIRD-78-66 RELEASED (106140)

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