Back to top

Image: Bigstock

CGI's (GIB) U.S.-Subsidiary Wins CMS Contract for HPMS Revamp

Read MoreHide Full Article

CGI’s (GIB - Free Report) wholly-owned U.S.-subsidiary CGI Federal recently clinched a pivotal contract with the Centers for Medicare & Medicaid Services (CMS) aimed at enhancing Medicare access for more than 65 million beneficiaries nationwide.

Under the agreement, CGI will revamp the Health Plan Management System (HPMS), a critical component facilitating Medicare Advantage and Medicare Part D (MAPD) programs.

The contract, valued at approximately $72 million, spans a base period of one year with the potential for four additional one-year option periods.

CGI’s mandate encompasses modernizing HPMS through cutting-edge technologies, including intelligent automation, cloud-based tools, data analytics and Agile delivery methodologies. This strategic overhaul aims to streamline plan enrollment, ensure compliance and fortify cybersecurity against emerging threats.

CGI’s extensive experience in delivering complex IT projects for HPMS positions it ideally to innovate solutions aligning with the evolving needs of Medicare beneficiaries and stakeholders.
 

 

The revamped HPMS will optimize annual lifecycle activities for MAPD plans and introduce user-centric enhancements through a comprehensive website. With more than 70 software modules, HPMS serves as a backbone supporting critical functions impacting millions of Medicare beneficiaries. The system’s Plan Management Dashboard offers real-time insights, empowering CMS and health plan executives with actionable data.

CGI Growth Prospects Ride on Expanding Clientele

CGI Group’s shares have returned 9.3% year to date compared with the Zacks Computer & Technology sector’s increase of 10.3%. Its expanding customer base and portfolio strength are expected to drive CGI’s top-line growth.

The company’s expanding federal customer base is noteworthy. It recently won a contract from the Commonwealth of Massachusetts to deliver a financial management solution through CGI Advantage, a cloud-based platform that integrates financial data in a modern, unified platform. The State of Utah also selected its CGI Advantage for the modernization of its human capital management solution.

CGI’s expanding international footprint has been a key catalyst. LocalTapiola, one of the largest insurance and financial services companies in Finland, recently extended its long-term strategic partnership with GIB for an additional five years.

GIB’s strong partner base, which includes Alphabet, Microsoft and Amazon, has been a key catalyst.

Zacks Rank & Stocks to Consider

CGI currently carries a Zacks Rank #3 (Hold).

GIB shares have underperformed the Zacks Computer & Technology sector in the year-to-date period. While CGI shares have gained 9.3%, the broader sector has returned 10.3%.

NVIDIA (NVDA - Free Report) , Meta Platforms (META - Free Report) and Synopsys (SNPS - Free Report) are some better-ranked stocks in the broader sector, each flaunting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Year to date, shares of NVDA, META and SNPS have gained 80.5%, 40.2% and 13.6%, respectively.

Long-term earnings growth rates for NVIDIA, Meta Platforms and Synopsys are currently pegged at 29.73%, 19.5% and 17.51%, respectively.

Published in