Serco wins U.S. health contract worth up to $1.25 billion
LONDON (Reuters) - British outsourcing group Serco (SRP.L) has won a contract worth up to $1.25 billion with the U.S. Department of Health, according to an entry on the federal contracting website.
The 12-month deal to handle applications for Qualified Health Plans, Medicaid and other insurance affordability programs will begin on October 1 and is worth 114 million pounds a year.
Including four optional 12-month extensions and additional tasks, the total contract value is $1.25 billion, the website said. <here
U.S. President Barack Obama approved a sweeping overhaul of the $2.5 trillion healthcare system in March 2010, seeking to obtain near-universal coverage and slow soaring health costs.
Republican opposition to the bill is still strong, with many U.S. states still debating whether to sign up.
Serco, which gets around 16 percent of its revenue in the United States, holds a number of contracts with the U.S. Department of Health, including running its medical research center and health services for American Indians.
Shares in Serco were up 6.2 percent by 6.21 a.m. ET.
(Reporting By Christine Murray; Editing by Louise Heavens)