Maximus secures $62 million Pennsylvania contract to expand services

Published 30/09/2025, 21:06
Maximus secures $62 million Pennsylvania contract to expand services

TYSONS, Va. - Maximus (NYSE:MMS), a $5.15 billion market cap government services provider currently trading near its 52-week high of $93.73, has been awarded a five-year, $62 million contract by Pennsylvania’s Department of Human Services (DHS) to continue administering the Pennsylvania Enrollment Assistance Program, according to a company press release. According to InvestingPro analysis, the company appears undervalued based on its Fair Value calculations.

The new agreement expands Maximus’s services to include Children’s Health Insurance Program (CHIP) recipients. While the state will maintain responsibility for determining CHIP eligibility and initial plan assignment, Maximus will support recipients who wish to change plans.

Maximus, which has provided healthcare enrollment assistance to Pennsylvanians since 2009, will implement several digital enhancements as part of the renewed contract. These include 24/7 web chat capabilities, text message alerts, and email notifications to supplement the existing website and mobile app.

The company plans to deploy an AI-based training tool for customer service agents who will guide residents through the health plan enrollment process and help them select primary care physicians.

"These technology enhancements are designed to make it easier for Pennsylvanians to connect with the information and support they need to make important healthcare decisions," said Ferdinand Morales, Senior Managing Director at Maximus.

In addition to operating the contact center, Maximus will conduct statewide outreach to educate stakeholders about available health coverage options and facilitate consumer advisory meetings across Pennsylvania.

The company states that all digital assets will be updated to ensure compliance with digital accessibility standards.

Maximus provides business process management, consulting services, and technology solutions to government programs. The contract renewal represents a continuation of the company’s long-standing partnership with Pennsylvania’s Department of Human Services.

In other recent news, Maximus Inc. reported impressive financial results for the third quarter of fiscal year 2025, significantly surpassing analyst expectations. The company achieved an earnings per share (EPS) of $2.16, notably higher than the projected $1.56. Additionally, Maximus’s revenue reached $1.35 billion, exceeding the anticipated $1.29 billion. In another development, Maximus announced the expansion of its stock repurchase program to a total of $400 million, which includes about $32.7 million remaining from the existing program. This buyback initiative allows the company to purchase shares through various methods, including open market transactions and private negotiations. The program does not have a set expiration date and may be adjusted or discontinued at the company’s discretion. These recent developments highlight Maximus’s strong financial performance and strategic initiatives.

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