HHS Awards $42.6M for Health Coverage Verification to Cotiviti Gov Services

Contract Overview

Contract Amount: $42,608,976 ($42.6M)

Contractor: Cotiviti GOV Services, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2023-02-15

End Date: 2027-02-14

Contract Duration: 1,460 days

Daily Burn Rate: $29.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEALTH COVERAGE VERIFICATION (HCV), FOR AUTOMATED VERIFICATION OF CRITICAL DATA SUPPLIED BY CONSUMERS DURING INTERACTIONS WITH CMS ON VARIOUS EXCHANGE PROGRAMS.

Place of Performance

Location: WINDSOR MILL, BALTIMORE County, MARYLAND, 21244

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $42.6 million to COTIVITI GOV SERVICES, LLC for work described as: HEALTH COVERAGE VERIFICATION (HCV), FOR AUTOMATED VERIFICATION OF CRITICAL DATA SUPPLIED BY CONSUMERS DURING INTERACTIONS WITH CMS ON VARIOUS EXCHANGE PROGRAMS. Key points: 1. Contract awarded to Cotiviti Gov Services, LLC for automated verification of critical consumer data. 2. The contract has a base value of $29.18M with options bringing the total to $42.6M. 3. This is a delivery order under a larger contract, indicating potential for future task orders. 4. The service falls under 'Other Accounting Services' (NAICS 541219).

Value Assessment

Rating: good

The contract's value of $42.6M over four years appears reasonable for a specialized IT service like automated data verification. Benchmarking against similar contracts for data processing and verification services would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process that likely resulted in fair pricing. The use of a delivery order under an existing contract implies that the initial competition was robust.

Taxpayer Impact: The use of automated verification aims to improve efficiency and accuracy in health coverage determination, potentially leading to cost savings and better resource allocation for taxpayers.

Public Impact

Ensures accuracy of critical data for consumers interacting with CMS exchange programs. Supports automated verification processes, potentially reducing manual effort and errors. Aims to streamline interactions with CMS for individuals seeking health coverage. Contributes to the integrity of health insurance marketplaces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the IT and Healthcare sectors, specifically focusing on data verification services for health insurance exchanges. Spending in this area is driven by the need for accurate eligibility determination and program integrity.

Small Business Impact

The data does not indicate whether small businesses were involved in this specific delivery order or the parent contract. Further analysis would be needed to determine small business participation.

Oversight & Accountability

The Centers for Medicare and Medicaid Services (CMS) is responsible for overseeing this contract. The firm-fixed-price structure provides some cost control, but ongoing monitoring of performance and deliverables is crucial.

Related Government Programs

Risk Flags

Tags

other-accounting-services, department-of-health-and-human-services, md, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $42.6 million to COTIVITI GOV SERVICES, LLC. HEALTH COVERAGE VERIFICATION (HCV), FOR AUTOMATED VERIFICATION OF CRITICAL DATA SUPPLIED BY CONSUMERS DURING INTERACTIONS WITH CMS ON VARIOUS EXCHANGE PROGRAMS.

Who is the contractor on this award?

The obligated recipient is COTIVITI GOV SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Medicare and Medicaid Services).

What is the total obligated amount?

The obligated amount is $42.6 million.

What is the period of performance?

Start: 2023-02-15. End: 2027-02-14.

What is the expected impact of this automated verification system on the accuracy and speed of health coverage determinations?

The automated Health Coverage Verification (HCV) system is designed to significantly improve the accuracy and speed of processing critical data supplied by consumers. By automating checks against various data sources, it aims to reduce manual errors, expedite eligibility assessments, and ensure that individuals receive appropriate health coverage benefits more efficiently, thereby enhancing the overall user experience with CMS exchange programs.

What are the primary risks associated with relying on Cotiviti Gov Services for this critical data verification function?

Key risks include potential data security breaches if the vendor's systems are compromised, vendor lock-in due to the specialized nature of the service, and performance issues if the automated system fails to accurately verify data or experiences downtime. Ensuring robust data protection measures, clear performance metrics, and contingency plans are vital to mitigate these risks.

How does this contract contribute to the overall effectiveness of CMS exchange programs?

This contract enhances the effectiveness of CMS exchange programs by ensuring the integrity of eligibility data. Accurate verification helps prevent improper payments, reduces administrative burden, and streamlines the enrollment process for consumers. This leads to a more efficient and trustworthy marketplace, ultimately supporting the program's mission of providing accessible health coverage.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesAccounting, Tax Preparation, Bookkeeping, and Payroll ServicesOther Accounting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 10701 S RIVER FRONT PKWY, SOUTH JORDAN, UT, 84095

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $53,373,935

Exercised Options: $42,608,976

Current Obligation: $42,608,976

Actual Outlays: $25,383,970

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F277CA

IDV Type: FSS

Timeline

Start Date: 2023-02-15

Current End Date: 2027-02-14

Potential End Date: 2028-02-14 00:00:00

Last Modified: 2026-02-10

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