HEALTHY FAMILIES: State Selects EDS For Contract
"Desperately trying to meet a July 1 start-up date" for the Healthy Families program, "state officials voted Monday to hire" Texas-based information systems company EDS Corp. to administer the program, the Contra Costa Times reports. Blue Cross of California withdrew its application to run the program last week because of "the state's requirement that it create separate corporate structures to administer the program and provide actual health coverage to some participants." EDS is not expected to have any "such conflict because it is not a health care provider." The Contra Costa Times reports that the "withdrawal of Blue Cross has raised doubts that the state can launch the program by July 1." According to officials with the state's Managed Risk Medical Insurance Board, which is running the Healthy Families program, "EDS' promise that it can have the system up and running" by July 1 "was a key in the decision to give it the contract." Sandra Shewry, executive director of the board, "said state officials believed EDS would provide the best service." However, she noted "the EDS contract will cost taxpayers about $50 million over three years, compared to about $22 million for the Blue Cross" contract (3/17).This is part of the California Healthline Daily Edition, a summary of health policy coverage from major news organizations. Sign up for an email subscription.