HMS, a wholly owned subsidiary of HMS Holdings Corp. (NASDAQ:HMSY), announced today that it has been awarded a contract by the South Dakota Department of Social Services to provide third party identification for cost avoidance services as well as billing of claims identified by the State as having third party coverage.

The contract extends through May 31, 2013 with two one-year renewal options.

HMS has performed third party identification and billing services on behalf of South Dakota since 2006. During that time, HMS has helped identify more than 24,500 Medicaid enrollees with other health insurance, yielding approximately $5.3 million in third party payments to the State in State Fiscal Year 2011 alone.

About HMS

HMS is the nation's leader in coordination of benefits and program integrity services for healthcare payers. HMS's clients include health and human services programs in more than 40 states; commercial programs, including commercial plans, employers, and over 135 Medicaid managed care plans; the Centers for Medicare and Medicaid Services (CMS); and Veterans Administration facilities. As a result of the company's services, clients recovered over $2.5 billion in 2011, and saved nearly $7 billion through the prevention of erroneous payments.