Northrop Grumman to set up Medicaid, CHIP system for Tennessee


Northrop Grumman will set up Tennessee’s new eligibility system to handle Medicaid and Children’s Health Insurance Program (CHIP) benefits. Both programs will see some changes through federal health care reform and many states that have agreed to expanding Medicaid under the health care reform law are now working to upgrade and stand up new eligibility systems.

The Tennessee Eligibility Determination System, called TEDS, will help the state meet requirements of the Patient Protection and Affordable Care Act (ACA). Northrop Grumman was awarded a $34 million, three-year contract to design, develop, implement, operate and maintain TEDS, which will begin enrolling people Oct. 1.

The company will also provide training and help desk services. MAXIMUS is providing similar help desk services to several states in New England.

Using TEDS, enrollees can apply for services or benefits online. Staffers or automated processes will review applications and electronically request additional information or documentation when needed.

An open-architecture, rules-based design that integrates easily with commercial products and other systems, TEDS will interface with external verification systems; other state systems, including the Medicaid Management Information System and the Electronic Document Management System; and the federal health insurance marketplace.