Health insurance company Health Net has outsourced a variety of technology and administrative services to Cognizant Healthcare Services, which also will provide consulting services.
Terms of the seven-year contract were not disclosed, but Health Net expects to reap $150-$200 million in annual general, administrative and depreciation expense savings by 2017.
Cognizant will provide services in such areas as claims management, membership and benefits configuration, customer content center, information technology, quality assurance, appeals and grievance services, and medical management support, according to a statement from the companies.
Cognizant further is expected to meet specific quality and efficiency metrics covering claims processing and routing times, customer response times and customer satisfaction.
As part of the contract, Cognizant will acquire certain Health Net software assets and intellectual property, along with the insurers technology platform, which it will enhance.
Health Net expects the arrangement to improve service levels, create new opportunities for products and services, more efficiency use its capital resources, and better meet regulatory requirements. Initially the insurer will pay Cognizant on a fixed fee basis and later transition to a per member per month payment arrangement.
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