Maximus Inc.

Maximus Inc.

Company type	Public
Industry	Government services
Founded	1975
Founder	David V. Mastran
Headquarters	Tysons, Virginia , United States
Area served	United States, Canada, United Kingdom
Key people	Bruce Caswell (CEO)
Products	Administrative and support solutions for Medicaid, Medicare, welfare-to-work initiatives, student loan management, and other government services
Number of employees	39,600 (2024)
Website	www.maximus.com

Maximus Inc. is a U.S.-based government services provider with operations across the United States, Canada, and the United Kingdom. The company specializes in delivering administrative and support solutions for programs such as Medicaid, Medicare, welfare-to-work initiatives, student loan management, and various other government services. Headquartered in Tysons, Virginia, Maximus employs approximately 39,600 staff members and reported revenues of $5.3 billion for the fiscal year 2024.

History

Established in 1975 by David V. Mastran as a consulting firm focused on federal government IT services, Maximus initially concentrated on information technology solutions.

During the 1980s and 1990s, reforms under the Reagan, Bush, and Clinton administrations encouraged increased private sector participation in administering government programs. In 1988, Maximus won its inaugural social welfare contract with Los Angeles County, marking a strategic move toward business process outsourcing and consulting at the state level.

The passage of the 1996 Personal Responsibility and Work Opportunity Reconciliation Act (PRWORA) alongside the 1997 Balanced Budget Act granted states greater autonomy in managing social welfare programs, fostering public-private collaboration. Maximus went public in 1997 on the New York Stock Exchange under the ticker MMS.

The George W. Bush administration further promoted private sector involvement in federally funded but state-managed entitlement programs. In 2006, Richard Montoni assumed the role of CEO. Between 2008 and 2010, Maximus divested several business units—including Security Solutions and Enterprise Resource Planning—to concentrate on its core health and human services offerings.

The Affordable Care Act enacted in 2010 broadened opportunities for private contractors within Medicaid, Medicare, and related health programs.

From 2010 to 2013, Maximus expanded its government service capabilities by acquiring Denver-based Policy Studies Incorporated (PSI) and enhancing clinical assessment services through its Ascend division. It also acquired Health Management Ltd., based in the United Kingdom. In 2015, Maximus completed a $300 million acquisition of Acentia, a technology contractor aimed at growing its federal technology portfolio.

After leading for twelve years, Montoni retired as CEO in 2018; Bruce Caswell, then President, succeeded him. Caswell prioritized digital innovation, modernization of technology infrastructure, and growth of clinical services. That same year, Maximus purchased U.S. Federal citizen engagement center assets from GDIT for $400 million.

In September 2020, Dr. Arvenita Washington Cherry was appointed Senior Director of Diversity, Equity & Inclusion to spearhead initiatives promoting workforce inclusivity.

During 2021, Maximus finalized three significant acquisitions: it assumed management of 5.6 million Department of Education student loan accounts through Aidvantage following asset acquisition from Navient; acquired Attain, a firm specializing in technology integration; and purchased Veterans Evaluation Services (VES), which provides clinical assessments. The Department of Veterans Affairs renewed contracts with VES through 2026 in January 2025 to continue conducting medical disability examinations across four U.S. regions.

In May 2022, Maximus moved its headquarters to Tysons, Virginia into office facilities designed to support hybrid work models post-pandemic.

September 2022 saw Maximus secure a $6.6 billion contract renewal spanning ten years with the Centers for Medicare & Medicaid Services (CMS) to operate citizen contact centers including the 1-800-MEDICARE line. However, in late 2023 the Department of Health and Human Services announced plans to re-compete this contract incorporating labor harmony clauses. CMS halted this rebidding process in November 2024 amid disputes over contract termination during an active term; multiple state attorneys general condemned this unprecedented action. Senator Bill Cassidy raised concerns that these measures were intended to encourage unionization among call-center personnel.

Structure

Maximus is organized into three primary divisions: U.S. Services, U.S. Federal Services, and International.

• U.S. Services: delivers business process services (BPS), appeals management, assessments, and consulting tailored for state and local government agencies. Prominent programs managed include Medicaid, Medicare, the Affordable Care Act, CHIP, SNAP, Refugee Support Services, and TANF.
• U.S. Federal Services: offers comprehensive solutions encompassing appeals processing, system and application development, IT modernization efforts, and ongoing maintenance.
• International: provides BPS to governmental bodies and commercial clients worldwide, focusing on health and disability evaluations, administration of employment programs, wellbeing initiatives, and workforce support services.

Services

Maximus stands as a prominent supplier of government-related services with a focus on business process management, technology integration, and advisory services. Their expertise covers areas such as Health and Wellness, Welfare and Safety Net programs, Citizen Services, as well as Federal and National Agencies.

Health and Wellness

Maximus delivers services supporting public health initiatives including Medicaid, independent medical reviews for workers' compensation cases, the Children’s Health Insurance Program (CHIP), Medicare, and health insurance marketplaces established under the Affordable Care Act. The company participates on the Enroll America advisory board.

In September 2012, Maximus won a two-year contract worth $76.8 million from the Illinois Department of Healthcare and Family Services to assist with its Medicaid program. That same month, the company secured a $23.5 million agreement with Oklahoma to manage a customer relationship management system for SoonerCare (Medicaid) and Insure Oklahoma, which helps subsidize private insurance for low- to moderate-income workers.

Maximus is recognized as the leading provider of outsourced Medicare health insurance appeals. In 2012, it expanded its federal operations by adding 500 new positions across upstate New York and Pennsylvania—over 325 roles in Pittsford, NY, and more than 125 in Scranton, PA.

The firm also competes in the health insurance exchange sector. In July 2012, Minnesota awarded Maximus a $41 million contract to build its health insurance exchange platform. Later in February 2013, Connecticut engaged Maximus with a $15 million contract to operate customer contact center services for Access Health CT, the state's insurance exchange.

COVID-19 Response

Beginning in March 2020, Maximus collaborated with federal, state, and local agencies across the United States to assist with the COVID-19 pandemic response. Early initiatives involved delivering testing results and conducting contact tracing efforts in states including Arizona and Indiana. In September 2020, Maximus launched Maximus Public Health to create citizen engagement centers and support vaccine procurement and distribution logistics.

By 2021, the company shifted its emphasis toward vaccine distribution efforts by partnering with states such as Colorado to provide appointment scheduling and information dissemination. In May 2021, the CDC selected Maximus to administer a national vaccine hotline program under a potential contract valued at $951 million.

Welfare and Safety Net

Maximus partners with both national and local governments to implement social welfare initiatives aimed at reducing poverty and promoting health equity. Its offerings encompass welfare-to-work programs such as Ticket to Work, Supplemental Nutrition Assistance Program (SNAP), Temporary Assistance for Needy Families (TANF), and services supporting refugees.

The company broadened its international presence in 2012 by launching its inaugural Canadian welfare-to-work program and later secured a five-year contract in Australia focused on employment assistance for individuals with disabilities.

Maximus also oversees child support enforcement operations, including a significant five-year agreement beginning in 2009 with Shelby County, Tennessee. Programs like Project NOW have been instrumental in recovering delinquent payments and helping parents achieve compliance.

In the United Kingdom, Maximus collaborates with the Department of Work and Pensions. It earned distinction as the leading service provider under the Flexible New Deal welfare-to-work scheme and continues to operate as a contractor across three regions within the UK's Work Programme. Its subsidiary, Centre for Health and Disability Assessments Ltd., administers Work Capability Assessments through a contract extending until July 2021.

Moreover, Maximus offers support for the U.S. Department of Education’s student loan management system and provides counseling services related to the Federal Student Loan program. Through Maximus Federal Services, it serves as a contractor for Federal Student Aid’s Default Management System (DMS), managing student loan default processing.

Citizen services

Government agencies deliver a range of citizen-focused services including passport issuance, driver licensing, disaster recovery efforts, travel risk evaluations, and census operations. Maximus supports organizations such as:

• The Federal Emergency Management Agency (FEMA)
• The 2020 Census

Federal/National Agencies

Maximus aids federal entities by designing, deploying, and managing business processes and associated technologies to fulfill program objectives. Notable contracts involve support for the Defense Information Systems Agency, Department of Energy, Securities and Exchange Commission (SEC), along with modernization efforts for the Internal Revenue Service (IRS) technology systems. Additionally, the company provides NextGen Business Process Operations Support Services for the Department of Education.

Awards and recognitions

In 2011, Gartner awarded Maximus its Business Process Management Program of the Year and acknowledged its excellence in business performance management. The Washington Post recognized Maximus as one of the Top Companies to work for in Washington, D.C., in 2015. Fortune included Maximus in its 2017 World's Most Admired Companies list. Military Times honored Maximus as a Top Employer for veterans in 2020.

Hired ranked Maximus third among U.S. Enterprise companies in 2022. In 2023, Forbes placed Maximus 13th nationally on America’s Best Employers for Diversity list and commended its exceptional diversity and inclusion efforts. The organization also achieved a third consecutive listing among the top 100 U.S. corporate internship programs by WayUp & Yello and was named a leading employer for Gen Z careers by Handshake.

That same year, Maximus earned two Platinum Hermes Creative Awards recognizing projects that improved Medicaid services and enhanced employment support through social media platforms. In 2024, The Washington Post once again designated Maximus as a Top Workplace in Greater Washington. The company attained a third consecutive VETS Indexes 5 Star Employer rating and was again recognized as a Top Veteran Employer by Military.com. It also received the 2024 Disability Matters North America Award for outstanding achievements in disability outreach and inclusion.

Maximus was featured on TIME Magazine’s America’s Best Mid-Size Companies list for 2024 and appeared in Fortune’s Fortune 1000 ranking based on revenue. Washington Technology ranked Maximus among the top 20 federal contractors in 2024.

Corporate Contributions

In 2010, Maximus, alongside other firms from Northern Virginia, volunteered to digitize incorrectly labeled graves and enhance record management at Arlington National Cemetery. The following year, Maximus provided financial support to No Kid Hungry Texas, aiming to combat childhood hunger through established nutrition initiatives.

Maximus also backed the National Hispanic Health Foundation’s scholarship program for students pursuing health services and, in 2012, made contributions to the Urban League of Middle Tennessee.

The Maximus Foundation

The Maximus Foundation operates as a 501(c)(3) nonprofit organization, funded through employee donations and corporate grants. Its mission centers on empowering underserved populations—particularly children—to attain self-reliance. John Boyer, who serves as President and General Manager of Maximus Federal Services, is the foundation’s Chairman.

In 2009, the foundation provided funding to the Maternity and Early Childhood Foundation to modernize technology and enhance service delivery in New York. Grants awarded in 2011 supported EMQ FamiliesFirst, a California-based nonprofit assisting children facing crises. In 2012, the foundation financed SoBRO’s Greenhouse Roof Operation, which offers vocational training to disadvantaged youth through a hydroponic farming project. That year, it also allocated over $100,000 to nonprofits in Washington, D.C., focused on child welfare.

The foundation donated $29,000 in 2013 to Project HOPE’s Nepal Earthquake Relief efforts and supplied school materials to 2,000 economically disadvantaged children in Austin, Texas, in 2015. During that same year, it granted nearly $390,000 to 121 nonprofits across 22 states, including organizations like CASA of Los Angeles and Community Health Centers of Burlington.

Moreover, the foundation supported four students at Thomas Jefferson High School for Science and Technology in Alexandria, Virginia, who developed Atheia—a technology designed to assist individuals with vision impairments.

Controversies

November 1997 - The Hartford Courant reported that Maximus delivered "minimal results" while managing Connecticut’s childcare program for welfare recipients. The Record-Journal criticized Maximus for understaffing, implementing an inadequate phone system, and falling behind on payments to daycare providers. The Connecticut Department of Social Services (DSS) imposed improvement targets; by December, DSS Commissioner Joyce A. Thomas acknowledged progress and stated that Maximus was laying groundwork for sustained enhancements.

December 1998 - According to the Sarasota Herald Tribune, Florida paid Maximus $4.5 million for Child Support Recovery services but recovered only $162,000. This equated to taxpayers spending $25 for every three cents collected.

1999 - Under Mayor Giuliani’s welfare reform initiative, New York City awarded Maximus contracts totaling $500 million aimed at assessing, training, and placing up to 200,000 welfare recipients. The city comptroller criticized this arrangement as providing Maximus an "unfair advantage" due to prior consultations before the contract bidding process.

October 2000 - Wisconsin legislators called for termination of Maximus’ W-2 contract amid allegations that the company had breached commitments to the state and Milwaukee County’s low-income residents.

June 2001 - Two employees at Maximus filed complaints alleging discrimination and lack of diversity within the company; minority staff reportedly referred to the organization as "White Castle."

2004 - British Columbia contracted Maximus under a $324-million ten-year agreement to outsource health administration services such as Medical Services Plan and PharmaCare. Concerns emerged regarding privacy due to potential exposure of sensitive data accessed under the Homeland Security Act.

July 2007 - Maximus resolved a U.S. government lawsuit concerning falsified Medicaid claims by agreeing to pay $30.5 million without admitting any wrongdoing.

October 2010 - The Los Angeles Times revealed that subcontractors under a $2.5 million annual contract managing California’s confidential diversion programs employed incorrect drug testing protocols between December 2009 and August 2010, permitting medical professionals who failed tests to remain employed.

June 2011 - A MassHealth project manager with access to sensitive personal data pleaded no contest to a felony charge in Florida; following an internal investigation that found no evidence of data misuse, Maximus terminated the employee.

September 2011 - The U.S. Equal Employment Opportunity Commission filed suit against Maximus for disability discrimination after the company failed to promote a female employee; the matter was settled in August 2012.

June 2012 - An internal privacy audit uncovered that a Canadian Maximus employee unlawfully accessed personal health records of 43 individuals; this employee was suspended and later dismissed.

January 2013 - A Boston-based employee of Maximus was indicted and subsequently convicted for embezzling over $490,000 from Massachusetts Medicaid over a nine-year period.

February 2013 - British Columbia’s auditor general reported inadequate oversight of Maximus’ ten-year contract. The audit cited missed deadlines without penalties, outdated equipment replacements, unresolved privacy concerns, reliance on self-reporting of breaches by subcontractors, and insufficient security audits.

April 2021 - An investigation by NPR and The Marshall Project found that numerous U.S. states hired Maximus to identify foster children eligible for Social Security disability benefits as a means of generating revenue by claiming these funds for foster care expenses—despite alternative funding sources being available. Many foster youths did not receive benefits owed once they aged out of care. Law professor Daniel L. Hatcher criticized this practice in his book The Poverty Industry.

March 2022 - A report from the Student Borrower Protection Center and Communications Workers of America documented consumer grievances against Aidvantage—a subsidiary of Maximus—alleging mismanagement of federal student loan programs.

Throughout 2022 and into 2023, employees at Maximus organized protests addressing labor conditions and compensation following rounds of layoffs.

External links

• Official Maximus website
• Maximus, Inc. profile on USAspending.gov
  • Contract ED-FSA-09-D-0015 details on USAspending.gov
• Financial overview of Maximus on Yahoo Finance