HMS acquires Verify Solutions

HMS today announced that it has acquired the assets of Verify Solutions, a metropolitan Atlanta-based company specializing in dependent eligibility audit services for employer-sponsored healthcare plans.

“This acquisition moves HMS into the employer-based market with a valuable new service that fits well with our mission to help control healthcare costs. This new service is consistent with our current offerings, which ensure that individuals are properly identified with the correct insurance coverage.”

Verify Solutions’ services ensure that dependents covered by employees are eligible to receive healthcare benefits. Their services provide clients with savings throughout the benefit cost structure, including medical, prescription drug, dental, and vision plans. The company also conducts Human Resources Data Reviews, to ensure that employers comply with ERISA, EEOC, and other governmental requirements.

“As healthcare reform takes shape, employers will continue to play a critical role in how citizens receive healthcare coverage,” said Bill Lucia, Chief Executive Officer of HMS. “This acquisition moves HMS into the employer-based market with a valuable new service that fits well with our mission to help control healthcare costs. This new service is consistent with our current offerings, which ensure that individuals are properly identified with the correct insurance coverage.”

Alan Rose and Susan Massey, Principals of Verify Solutions, will serve as Vice Presidents in HMS’s Employer Services Division. “While our clients have achieved significant savings from our dependent eligibility audits, they have also demonstrated a strong appetite for additional cost containment solutions,” said Rose. “We are excited to offer our clients the range of coordination of benefits and program integrity services from HMS.”

The purchase price for the assets of Verify Solutions was $8.0 million, with additional future payments contingent upon future financial performance. HMS projects revenues from dependent eligibility audits of approximately $7 million and expects the transaction to be accretive to earnings per share for the fiscal year ending December 31, 2010.