02:41 PM EDT, 11/01/2024 (MT Newswires) -- Maximus ( MMS ) said Friday it has initiated a legal action against the rebid of the 1-800-MEDICARE and Federal Marketplace contract, a move that the company criticized as baseless and illegal.

The Centers for Medicare & Medicaid Services, or CMS, an agency within the US Department of Health and Human Services, "is taking the unnecessary step of rebidding the contract only two years into the nine-year term with a requirement for a labor harmony agreement," Maximus ( MMS ) said.

The company challenged the rebid in the US Court of Federal Claims, accusing the government of overstepping its authority and using the competitive bidding process "to force their policy agenda on workers and employers."

CMS did not immediately reply to MT Newswires' request for comment.

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