CCIIO Awards $55.7 Million Contract to Build Federal Government's Exchange

Bloomberg BNA's Health IT Law & Industry Report brings you concise, comprehensive, and timely news and analysis of the regulatory, legal, and compliance issues surrounding our nation’s...

CGI Federal Inc. announced Dec. 1 that it has been awarded a $55.7 million contract to build the federal government's health insurance exchange to operate in states that do not set up their own exchange markets under the health care reform law.

The contract to CGI Federal of Fairfax, Va., a wholly owned U.S. operating subsidiary of CGI Group Inc., was awarded by the Centers for Medicare & Medicaid Services' Center for Consumer Information and Insurance Oversight.

CGI Federal said the total contract value to build the federally facilitated health insurance exchange, Federal Exchange (FX), has an estimated value of $93.7 million over a two-year base period with three one-year option periods.

“We have a unique, cross-sector perspective on health IT that makes us well suited to partner with CMS for success on one of the most visible efforts in CMS history,” Rich Martin, vice president of CGI, said in a release.

Under the Patient Protection and Affordable Care Act, the federal government will operate online health insurance exchange markets in states that do not operate their own exchanges. Individuals and small businesses will be able to buy health insurance in the exchanges beginning in 2014, and states have the option of allowing large businesses to buy policies through the exchanges beginning in 2017.

CGI Federal provides information technology services to federal agencies in defense, civilian, and intelligence missions. CGI Group, which operates in Canada, the United States, Europe, and the Asia Pacific region, is an information technology company with $4.3 billion in revenues as of Sept. 30, the company said.