In fall 2007, the Department of Health and Social Services signed a contract with Affiliated Computer Services to replace the state’s Medicaid claims system. Alaska has had this system, called the Medicaid Management Information System or MMIS, for about two decades.
The MMIS is vital to Alaska’s Medicaid program. Each year, the system processes claims and pays more than $1 billion to providers who offer care and services to more than 100,000 Alaskans receiving Medicaid and other government medical assistance.
In 2006, the department issued a Request for Proposal for a new company to develop and implement a new MMIS for Alaska.  Affiliated Computer Services, based in Texas, submitted the proposal with the lowest cost and the best technological improvements. Staff members from the company will work with a designated DHSS team to create a new MMIS that meets the department’s needs. Both staffs are working together in Building B of the Business Park in Anchorage.
The new MMIS will bring a number of changes and improvements:

• More Services for Medicaid Recipients – Recipients will be able to visit a secure and interactive Web site. Through this site, recipients can learn about Medicaid benefits and coverage, find participating health care providers in their area, check the status of their Medicaid claims and seek answers to their questions.
• Up-to-date information – The new MMIS will make it easy to find updated eligibility information for Medicaid recipients.
• Improved service – The customer service and support system will become Web-focused, while keeping other communication lines open.
• Better communication – The new MMIS should improve how information is shared, both inside and outside the Department of Health and Social Services.
• Electronic claims submission and Electronic Funds Transfer – Health care providers will be able to submit Medicaid claims and transfer payments electronically. They also can check the status of their claims online. In real-time, they can enter claims, find out what amount will be paid, if claims will be denied, and the reasons for the denials.
• Reduction in paper costs – The new system’s ability to allow providers to enroll in the Medicaid program, submit claims and transfer payments electronically will eliminate the need to print checks. This decreases the use of paper, and related costs.
• Efficiency and timeliness – The new, efficient technology will allow providers to go online and catch errors in their claims in real-time. This is anticipated to decrease the amount of time needed to process and pay these claims.

The new MMIS will cost about $45 million to develop, which includes vendor and technical assistance contractor expenses. Federal money typically pays 90 percent of these developmental costs. The new system should be ready for use in summer 2010.
Training will be available for department staff, but it will not be scheduled until closer to the launch of the new system in 2010. More information about training will be provided at that time.
If you have questions about the MMIS Replacement Project, call Doug Jones, Business Manager, at 334-2404 or email him at douglas.jones@alaska.gov. The department also has an Intranet site for the project, located at http://www.internal.hss.state.ak.us/mmis/ .