Maximus Makes Money On ObamaCare, Government Spending

When someone is calling to apply for a health plan under the Affordable Care Act -- often called ObamaCare -- chances are a Maximus employee may answer the phone.

In addition, the contact center representative will also input and digitize the application, request any missing info, verify eligibility, help choose the plan and notify the managed care plan of the selection.

This is only a portion of the services that the Reston, Va.-based firm provides to states and governments worldwide.Maximus ( MMS ) also runs comprehensive services for the Children's Health Insurance Program (CHIP) and Medicaid, helps consumers access long-term care, assists students in managing their loans, and aids people on welfare in joining and remaining in the workforce.

However controversial the topic of U.S. federal spending and ObamaCare may be now, it represents a portion of business for Maximus, which has a long and broad history in getting work done with programs that many governments implement.

The company currently operates 300 offices in the U.S., Canada, U.K., Australia and Saudi Arabia. It employs 11,000 people, striving to provide localized services in developed countries with a favorable regulatory environment.

"Our mission statement is helping governments serve the people," said Maximus CEO Rich Montoni. "Unlike many of our competitors, we've done this for nearly 40 years. It's been our sole focus and I really think it differentiates us in the marketplace."

When Maximus manages a program for a government or state, it is the first point of contact as people apply for benefits. Its business units are health care and human services. Health care includes services for federal or state health plans. Human services helps the unemployed find and keep jobs. Such programs are underway in the U.K. and Australia, with a pilot program in the U.S .

Capitalizing On Government

In fiscal 2013, the company booked $1.3 billion in revenue, of which 65% was from health services and 35% from human services. Three-quarters of the revenue came from the U.S., with the rest generated internationally. Maximus expects total revenue of $1.6 billion to $1.8 billion in fiscal 2014.

Besides its two federal health insurance marketplace call centers, Maximus counts the most contracts of firms providing services to state health insurance exchanges. It manages those programs in eight states and the District of Columbia.

See the article here:
Maximus Makes Money On ObamaCare, Government Spending