Oracle Wins CMS Contract to Modernize Medicare and Medicaid Systems
Alvin Lang Feb 12, 2026 06:40
Centers for Medicare & Medicaid Services selects Oracle Cloud Infrastructure to migrate federal health agency workloads, expanding Oracle's government cloud portfolio.
The Centers for Medicare & Medicaid Services has tapped Oracle Cloud Infrastructure to overhaul its aging technology systems, marking another significant federal contract win for the enterprise software giant as it pushes deeper into government healthcare.
CMS, which administers health coverage for over 150 million Americans through Medicare, Medicaid, and the Affordable Care Act marketplace, will consolidate and migrate select on-premises workloads to Oracle's FedRAMP High-authorized cloud environment. The agency cited security requirements and scalability needs as primary drivers for the selection.
"CMS' programs are vital to the wellbeing of many Americans, a responsibility that demands uncompromising security, reliability, and fiscal stewardship," said Kim Lynch, Oracle's executive vice president for Government, Intelligence and Defense.
Federal Healthcare Push Accelerates
The CMS deal arrives as Oracle aggressively expands its healthcare footprint following the $28 billion Cerner acquisition. The company has been integrating clinical data systems with enterprise resource planning tools on OCI, positioning itself as a one-stop shop for healthcare IT modernization.
Recent weeks have shown momentum building. On February 4, multiple Canadian healthcare organizations selected Oracle Health's Clinical AI Agent to reduce physician administrative burden. Days later, Transform Shared Service Organization announced improved EHR performance after migrating to OCI.
For CMS specifically, Oracle is pitching four core capabilities: FedRAMP High security compliance, dynamic scaling for large federal workloads, cost reduction through system consolidation, and integrated AI analytics for automation initiatives.
What This Means for Oracle's Government Business
Federal cloud contracts carry strategic value beyond their immediate revenue. They validate security credentials, create sticky long-term relationships, and often expand as agencies modernize additional systems. Oracle explicitly framed this as adding to its "growing portfolio of federal agency cloud migrations."
The contract terms weren't disclosed, but CMS modernization projects typically span multiple years given the complexity of healthcare data systems and compliance requirements. Implementation timelines and specific workload details remain unclear from the announcement.
Healthcare IT spending continues growing as agencies balance legacy system maintenance costs against modernization investments. Oracle's bet on combining clinical systems with cloud infrastructure appears to be gaining traction with both government and private sector healthcare organizations looking to consolidate vendors.
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