Maximus Awarded OPM Contract for New Postal Service Health Benefits Program

Rhea-AI Summary

Maximus (NYSE: MMS) has been awarded a $20 million contract from the Office of Personnel Management (OPM) to serve as the Contact Center Services Provider for the new Postal Service Health Benefits Program. This program will provide health insurance to eligible Postal Service employees, annuitants, and their families starting in 2025.

Maximus will lead customer support efforts, answering calls and emails for OPM's enhanced customer service platform. The company will utilize its Total Experience Management (TXM) solution, including advanced telephony, customer relationship management, and call quality reporting tools. This new program will replace FEHB coverage for eligible groups and is part of Maximus' expertise in implementing and modernizing public-facing programs.

Positive

• Awarded $20 million contract from OPM
• Leveraging 30+ years of experience working with OPM
• Utilization of advanced TXM solution for customer service
• Expansion of services in federal agency sector

Negative

• None.

Insights

Financial Analyst

The $20 million contract awarded to Maximus by the Office of Personnel Management (OPM) is a positive development for the company. This contract positions Maximus as a key player in the new Postal Service Health Benefits Program, set to launch in 2025. While the contract value is relatively modest compared to Maximus's annual revenue (which was $4.63 billion in fiscal year 2022), it represents a strategic expansion of their government services portfolio.

The contract's focus on customer support aligns well with Maximus's core competencies and their newly launched Total Experience Management (TXM) solution. This could potentially lead to upselling opportunities and contract extensions if Maximus performs well. However, investors should note that the program's full impact won't be realized until 2025, suggesting a long-term growth opportunity rather than an immediate revenue boost.

Government Services Expert

This contract award demonstrates Maximus's strong positioning in the government services sector, particularly in health benefits administration. The company's 30-year history with OPM and experience in implementing public-facing programs give it a competitive edge in securing such contracts. The Postal Service Health Benefits Program represents a significant shift in how health insurance is provided to postal employees and Maximus's role as the contact center services provider puts it at the forefront of this transition.

The use of Maximus's TXM solution, including AI-enabled services and virtual assistants, showcases the company's technological capabilities. This could potentially lead to improved efficiency and cost savings for the government, which may result in favorable reviews and future contract opportunities. However, the success of this program will be important for Maximus's reputation in handling large-scale government health benefit initiatives.

Maximus is Contact Center Services Provider for new program launching in November

TYSONS, Va.--(BUSINESS WIRE)-- Maximus (NYSE: MMS), a leading employer and provider of government services worldwide, today announced it has been awarded a $20 million contract from the Office of Personnel Management (OPM) to serve as the Contact Center Services Provider for the agency’s new Postal Service Health Benefits Program. This program will provide health insurance to eligible Postal Service employees, annuitants, and their eligible family members starting in 2025.

Maximus will be leading the customer support effort to answer calls and emails for OPM’s new, enhanced customer service platform dedicated to assisting eligible individuals access health insurance benefits. Maximus will leverage offerings from its Total Experience Management (TXM) solution, including state-of-the-art telephony, customer relationship management, and call quality reporting tools to provide best-in-class customer service.

“The Postal Service Health Benefits Program is an invaluable benefit for the U.S. Postal Service workforce, and Maximus is uniquely positioned to develop this new contact center and Customer Experience (CX) approach based on more than 30 years of experience working with OPM,” said Larry Reagan, Senior Managing Director, Federal Civilian Market, Maximus. “Our senior team has vast experience standing up new customer service programs at scale for federal agencies to deliver a range of services, including disaster recovery, education, and health benefit services.”

The Postal Service Health Benefits Program is a new, separate program within the Federal Employees Health Benefits (FEHB) Program, administered by OPM and will replace FEHB coverage for eligible groups. The implementation and modernization of public-facing programs have long been a specialty for Maximus, including work with the Federal Emergency Management Agency (FEMA) and the Internal Revenue Service (IRS).

Maximus recently launched TXM as a cloud-based modular, flexible, and scalable technology for federal agency leaders based on its extensive experience with mission-critical programs at scale. The full solution integrates platforms for communications, customer and employee-centric strategies, and a host of microservices, such as AI-enabled web services, chatbots, and the Maximus Intelligent Virtual Assistant (IVA).

To learn more about Maximus and its capabilities for improving CX for federal agencies, visit maximus.com/txm-solution.

About Maximus

As a leading strategic partner to governments across the globe, Maximus helps improve the delivery of public services amid complex technology, health, economic, environmental, and social challenges. With a deep understanding of program service delivery, acute insights that achieve operational excellence, and an extensive awareness of the needs of the people being served, our employees advance the critical missions of our partners. Maximus delivers innovative business process management, impactful consulting services, and technology solutions that provide improved outcomes for the public and higher levels of productivity and efficiency of government-sponsored programs. For more information, visit maximus.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240827600267/en/

Investor Relations

James Francis

Jessica Batt

IR@maximus.com

Media & Public Relations

Eileen Cassidy Rivera

media@maximus.com

Source: Maximus

FAQ

What is the value of the contract Maximus (MMS) received from OPM for the Postal Service Health Benefits Program?

Maximus (MMS) was awarded a $20 million contract from the Office of Personnel Management (OPM) to serve as the Contact Center Services Provider for the new Postal Service Health Benefits Program.

When will the Postal Service Health Benefits Program supported by Maximus (MMS) start providing coverage?

The Postal Service Health Benefits Program supported by Maximus (MMS) will start providing health insurance to eligible Postal Service employees, annuitants, and their eligible family members in 2025.

What technology solution will Maximus (MMS) use for the OPM Postal Service Health Benefits Program contract?

Maximus (MMS) will leverage offerings from its Total Experience Management (TXM) solution, including state-of-the-art telephony, customer relationship management, and call quality reporting tools for the OPM Postal Service Health Benefits Program contract.

How does the new Postal Service Health Benefits Program relate to the existing Federal Employees Health Benefits (FEHB) Program?

The Postal Service Health Benefits Program is a new, separate program within the Federal Employees Health Benefits (FEHB) Program, administered by OPM. It will replace FEHB coverage for eligible Postal Service groups.