California selects Accenture to implement CalHEERS

Accenture (NYSE: ACN) has been selected by the State of California, following a competitive bid process, to implement a statewide health insurance exchange, the California Healthcare Enrollment, Eligibility and Retention System (CalHEERS). The contract award overall was valued at $359 million, comprised of $183 million for initial development and implementation (to be completed by October 2013) and $176 million for continued development and operating costs over approximately three and a half years following the implementation.

Accenture will lead the development of the system that will enable Californians to determine their eligibility for subsidized health benefits, compare insurance plan options and enroll in coverage. The target date for completion is October 2013, to allow individuals to begin pre-enrollment in health plans in advance of the January 2014 Federal deadline for all states to implement a health insurance exchange.

CalHEERS implementation will include deployment of the Accenture Public Service Platform (APSP) and the Accenture Health Benefits Exchange (AHBX), software products designed to help public agencies modernize IT capabilities and manage citizen services in an integrated, cost-effective and customer-friendly manner. AHBX is built on APSP's proven service-oriented architecture and provides a MITA-aligned solution enabling individuals and small businesses to determine eligibility and then shop, compare, and enroll in various health plans.

The implementation also will include health insurance exchange software from Getinsured. Other Accenture subcontractors on the project include CGI and Oracle.

"California is among the leading U.S. states to build an exchange to increase the number of citizens with health insurance, improve the quality of health services, lower healthcare costs and reduce health disparities," said Stephen J. Rohleder, group chief executive, Accenture Health & Public Service. "Accenture is eager to help California launch this upgrade in health and human services, an innovative, competitive marketplace that empowers consumers to find and choose best-value health plans and providers."