Maximus sues to challenge early rebid of 1-800-MEDICARE contract

Maximus (MMS) announced they have filed suit in the U.S. Court of Federal Claims challenging the “baseless and unlawful” rebid of the U.S. Department of Health and Human Services Contact Center Operations 1-800-MEDICARE and Federal Marketplace contract. “Despite providing high-quality customer service, exceeding every performance metric, and delivering uninterrupted service even during two hurricanes, CMS is taking the unnecessary step of rebidding the contract only two years into the nine-year term with a requirement for a labor harmony agreement (LHA). This unprecedented move is illegal and improper pursuant to established law, regulation, and procurement policy, and may jeopardize future seamless service to the 75 million Americans with Medicare and accessing health insurance through the Federal Marketplace all while increasing cost to taxpayers. The lawsuit follows the Government Accountability Office’s ruling in September 2024 that partially sustained Maximus’ pre-award protest, requiring HHS to redraft the labor harmony requirement. We believe there is merit to contesting HHS’s procurement authority as it violates federal contracting laws,” the company stated. Eileen Cassidy Rivera, Vice President for Public Relations, Maximus, added: “The government has clearly overstepped its authority and is unlawfully using the competitive bidding process to force their policy agenda on workers and employers. Maximus is a pro-employee company, offering competitive pay and benefits that have led to more than 80 percent of our workforce stating in independent surveys they enjoy working for our company.”