HMS was awarded a contract by ValueOptions, a Norfolk, Va.-based behavioral health care company, to perform coordination of benefits and overpayment services for its at-risk plans in Maryland and Pennsylvania.

The deal also covers its Medicaid members in Colorado, New Mexico and Texas.

HMS will identify ValueOptions Medicaid members that have other healthcare coverage, and recover overpayments from liable third parties.

“This contract extends HMS’s reach into the behavioral health market, where we can play a significant role in helping Medicaid control the escalating costs of mental health services,” said Christina Dragonetti, HMS executive vice president for managed care services, in a statement.

The New York-based HMS provides services that have helped government healthcare programs recover more than $1 billion annually and avoid billions of dollars more in erroneous payments, according to the company.

ValueOptions, the nation’s largest independent behavioral health care company, provides services to more than 23 million individuals through a variety of contracts with state and county agencies, as well as with health plans and employers. ValueOptions is a managed care company that specializes in management for all behavioral health issues, and mental health and chemical dependency diagnoses.

HMS’ clients include health and human services programs in more than 40 states, 100 Medicaid managed care plans, the Centers for Medicare and Medicaid Services and Veterans Administration facilities.