EDS Subsidiary Awarded $148 Million CMS Contract for Medicare Administrative Services to Northwest

    HERNDON, Va., July 2 /CNW/ -- EDS today announced that the U.S. Centers
for Medicare & Medicaid Services (CMS) has awarded its subsidiary, NHIC,
Corp., a $148 million contract to administer Part A and Part B Medicare claims
payments to health care providers in four northwestern states. The contract is
for one year with four 1-year options and will serve approximately 54,000
physicians and practitioners and 233 Medicare hospitals within Alaska, Idaho,
Oregon and Washington.
    NHIC will provide a variety of important Medicare administrative
functions for hospitals, skilled nursing facilities and physicians in the
regions and will be the providers' first point of contact for the processing
and payment of Medicare fee-for-service claims.
    Additionally, NHIC will provide a wide range of additional administrative
services, including: appeals, audit and reimbursement, provider enrollment,
educational outreach, print and mail services, financial and accounting
services, contact center, electronic data interchange, mailroom operations and
medical and utilization review.
    The contract will help CMS fulfill the contracting requirements of the
2003 Medicare Modernization Act, which requires the agency to transition
Medicare fee-for-service claims from fiscal intermediaries and carriers to the
Medicare Administrative Contractors.
    "This is another step toward improving service to beneficiaries and
health care providers as well as giving CMS greater oversight of the Medicare
contractors that process and pay Medicare claims," said CMS Acting
Administrator Kerry Weems.
    "The breadth of skills and experience from EDS' subsidiary, NHIC, will
help CMS achieve its goal of consolidating its benefits processing operations
while saving money, promoting innovation and increasing operational
excellence," said Dennis Stolkey, vice president and general manager, EDS U.S.
Government and Public Sector. "EDS has been a CMS Medicare partner since 1965,
and we are pleased with this opportunity to provide technical support in order
to serve the Medicare and Medicaid programs."
    NHIC is one of the largest Medicare Part B contractors in the country,
already serving more than 150,000 health care providers in California, Maine,
Massachusetts, New Hampshire and Vermont.
    With more than 7,000 health care experts supporting clients in 30
countries, EDS has provided support services to Medicare and Medicaid clients
for more than 40 years, processing more than 270 million Medicare claims and
about 1 billion Medicaid claims per year. EDS provides an array of technology
services for CMS and Medicare contractors including data center services,
maintenance of the Medicare Part B system, and non-base system support.
Another EDS subsidiary, SafeGuard Services, provides Medicare and Medicaid
benefit integrity services and fraud detection in 10 states including
California, New York, New Jersey, and Pennsylvania.

    About EDS

    EDS (NYSE:   EDS) is a leading global technology services company
delivering business solutions to its clients. EDS founded the information
technology outsourcing industry more than 46 years ago. Today, EDS delivers a
broad portfolio of information technology and business process outsourcing
services to clients in the manufacturing, financial services, healthcare,
communications, energy, transportation, and consumer and retail industries and
to governments around the world. Learn more at eds.com.
    The statements in this news release that are not historical statements,
including statements regarding the amount of new contract values, are
forward-looking statements within the meaning of the federal securities laws.
These statements are subject to numerous risks and uncertainties, many of
which are beyond EDS' control, which could cause actual results to differ
materially from such statements. For information concerning these risks and
uncertainties, see EDS' most recent Form 10-K. EDS disclaims any intention or
obligation to update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise.

     Ericka Floyd - EDS
     703 742 1477

For further information:

For further information: Ericka Floyd of Electronic Data Systems 
Corporation, +1-703-742-1477, ericka.floyd@eds.com; Web Site:

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