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AHCCCS Awards Contract to Develop a Roadmap for Mainframe System Modernization

November 5, 2021

The Arizona Health Care Cost Containment System (AHCCCS) has awarded a contract to begin the strategic planning and modular roadmapping of a full system overhaul of the Prepaid Medicaid Management Information System (PMMIS), a 30-year old mainframe computer system that manages all of the critical Medicaid business functions for Arizona and Hawaii.

The awarded contractor, NTT Data, LLC, will create a holistic roadmap inclusive of technological, budgetary, staffing, and business process challenges that both states will face as they convert from a single, monolithic mainframe system into the modular approach preferred by the Centers for Medicare and Medicaid Services (CMS). With the roadmap, AHCCCS will develop advance planning, requirements, and design documents that CMS and state authorities require before an overhaul can begin.

The existing PMMIS mainframe is a traditional, legacy solution with a number of sub-systems and services that run critical Medicaid business processes and functions. Built on 1980s technology, it took more than five years to design and develop before it went live in 1990. Modifications have been made throughout the years to accommodate changes in Medicaid’s approach to delivering health care to its members.

In 1999, Arizona and Hawaii entered into an agreement where Arizona would provide MMIS services for Hawaii. In support of Arizona’s agreement with Hawaii, Arizona operates a copy of PMMIS called HPMMIS. Both are maintained by AHCCCS and reside on the Arizona mainframe.

The contract award is contingent upon CMS approval. Find the full procurement file on the AHCCCS Solicitations and Contracts web page under file name YH22-0009.

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