(b) On June 6, 2007, HMS Holdings Corp. (the “Company”) issued a press release announcing its Senior Vice President and Chief Financial Officer, Thomas G. Archbold, will be leaving the Company and will be replaced by Walter D. Hosp effective July 2, 2007.

In connection his agreement to remain with the Company for a period of time to ensure an orderly transition to Mr. Hosp, Mr. Archbold will continue to receive his salary and health plan benefits for 12 months following his departure. In addition, Mr. Archbold will be paid a pro-rated bonus for 2007 at such time as all other executive bonuses are paid.

(c) On and effective July 2, 2007, Walter D. Hosp will become the Company’s Senior Vice President and Chief Financial Officer.

Mr. Hosp, 49 years old, has over 15 years of experience in senior financial executive positions for large publicly-traded healthcare and insurance companies, most recently, from August 2002 through June 30, 2007, as Vice President and Treasurer of Medco Health Solutions, Inc. (NYSE:MHS). At Medco, Mr. Hosp built and managed all treasury activities related to the spin-off of Medco from Merck & Co. Prior to Medco, Mr. Hosp served as Chief Financial Officer of Ciba Specialty Chemicals Corporation, and President of their Business Support Center. Earlier, as Vice President and Treasurer of Ciba-Geigy Corporation (now Novartis), Mr. Hosp served as a principal spokesperson to analysts and investors.

There are no family relationships among Mr. Hosp and any directors or officers of the Company.

There have been no transactions nor are there any proposed transactions between the Company and Mr. Hosp that would require disclosure pursuant to Item 404(a) of Regulation S-K.

Mr. Hosp will participate in the usual compensation and benefit programs available to an executive officer of the Company. His initial base salary will be $325,000 per year, and his target payout for cash bonus as a percent of salary will be 40%, with a minimum bonus of $100,000 for the year ended December 31, 2007. In addition, Mr. Hosp will be granted options to purchase 60,000 shares of the Company’s common stock. The options will have an exercise price equal to the closing price of the Company’s common stock on the Nasdaq Global Select Market on July 2, 2007 (the “Grant Date”), will vest 25% per year commencing one year from the Grant Date, and will expire ten years from the Grant Date.

On June 6, 2007, the Company issued a press release announcing the departure of Mr. Archbold and the appointment of Mr. Hosp as Senior Vice President and Chief Financial Officer. A copy of the press release is attached hereto as Exhibit 99.1.

The information contained in this Item 7.01, including Exhibits referred to herein, is being furnished to the Securities and Exchange Commission (the "SEC") and shall not be deemed to be incorporated by reference into any of the Company's filings with the SEC under the Securities Act of 1933.

(d) Exhibits