Department of Social and Rehabilitation Services Secretary Rochelle Chronister announced a contract has been awarded to a Virginia company to identify areas where Kansas can increase the amount of federal funds available to pay for social service programs operated over the past 24 months.

Maximus, based in McLean, Va., won the contract through a competitive bid process. In its bid, Maximus projected it could recover about $16 million in additional federal funds from the last eight state fiscal quarters, dating between April, 1994, and June, 1996.

Under the contract, Maximus will be paid 9 percent of the amount of federal funds recovered. The company began work in Kansas May 1.

Most programs operated by SRS are paid for through a combination of federal and state funds, including Medicaid, which provides health care to low-income and disabled Kansans. Different formulas are used in determining federal and state cost shares for social service programs.

Maximus is expected to concentrate efforts at federal fund recovery in the following SRS commissions: Adult and Medical Services, Mental Health and Developmental Disabilities, Children and Family Services, Administrative Services, and Income Maintenance/Employment Preparation Services.

The company is also expected to provide assistance in the recovery of federal funds available to school districts and local health departments. Much of this recovery work will involve assisting these agencies in submitting claims for Medicaid.

Maximus has provided similar services in a number of other states, including Nebraska, Connecticut, Maine and Arizona.

According to Chronister, Maximus' knowledge of intricate federal regulations allows the company to maximize federal funds available to states. While she said SRS has done a commendable job at obtaining federal funding due the state, she said the agency can take advantage of the additional knowledge this company has gained. She also pointed out that Maximus has agreed to work on a contingency basis, so there is no risk to the state.

They have gained tremendous expertise in the area of federal regulations," she said. Using this expertise will help us pursue retroactive federal payments."

Secretary Chronister also indicated that maximizing the level of federal funds coming to Kansas will also increase the amount the state will receive under baselines being considered by the United States Congress in both Medicaid and welfare reform.

Under these proposals, which have yet to become law, states would receive a block grant to operate various social services programs. The amount of the block grant would be based on prior year funding levels.

The contract between SRS and Maximus is for one year. The contract can also be renewed for an additional year.

Page Last Updated: May 29, 2001