November 29, 2011

State of New Jersey Extends Third Party Liability Contract, Designates HMS Recovery Audit Contractor

NEW YORK--(BUSINESS WIRE)-- HMS, a wholly owned subsidiary of HMS Holdings Corp. (NASDAQ: HMSY), today announced that the State of New Jersey, Department of Health Services, Division of Medical Assistance and Health Services (DMAHS), has extended its current third party liability (TPL) contract with HMS for two additional years. Under the terms of this extension, HMS will continue to provide a range of Medicaid overpayment and underpayment identification and recovery services to the State until December 31, 2012. Additionally, the Centers for Medicare and Medicaid Services (CMS) has approved a waiver designating HMS as the Medicaid Recovery Audit Contractor (RAC) for the state of New Jersey for the remainder of the TPL contract term.

HMS has performed third party liability and program integrity services on behalf of New Jersey since 1986. During that time, HMS has assisted New Jersey to recover and save more than $1.7 billion.

About HMS (NASDAQ:HMSY)

HMS (NASDAQ: HMSY), is the nation's leader in coordination of benefits and program integrity services for healthcare payors. HMS's clients include health and human services programs in more than 40 states; commercial programs, including commercial plans, employers, and over 120 Medicaid managed care plans; the Centers for Medicare and Medicaid Services (CMS); and Veterans Administration facilities. As a result of the company's services, clients recovered over $1.8 billion in 2010, and saved billions of dollars more through prevention of erroneous payments.

HMS Holdings Corp.
Media Relations
Francesca Marraro, 212-857-5442
fmarraro@hms.com
or
Investor Relations
Christine Saenz, 212-857-5986
csaenz@hms.com

Source: HMS Holdings Corp.

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