FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * HOLSTER ROBERT M   2. Issuer Name and Ticker or Trading Symbol HMS HOLDINGS CORP [HMSY] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner __X__ Officer (give title below) _____ Other (specify below) CEO and Chairman of the Board (Last) (First) (Middle) 401 PARK AVENUE SOUTH 3. Date of Earliest Transaction (Month/Day/Year) 12/12/2006 (Street) NEW YORK, NY 10016 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 12/12/2006(1)   M   10,000 A $ 1.19 67,314 D   Common Stock 12/12/2006(1)   F   10,000 D $ 14.13 57,314 D   Common Stock               13,773 I Held in Trust for Son (2) Common Stock               14,223 I Held in Trust for Son (3) Common Stock               8,000 I Held by Spouse

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Non-Qualified Stock Option (right to buy)

$ 1.19

12/12/2006(1)

M

10,000

(4)

03/30/2011

Common Stock

10,000

$ 14.13

600,000

D

Incentive Stock Option (right to buy)

$ 2.48

(5)

12/12/2011

Common Stock

75,000

75,000

D

Incentive Stock Option (right to buy)

$ 3.41

(5)

12/19/2012

Common Stock

51,611

51,611

D

Non-Qualified Stock Option (right to buy)

$ 3.41

(5)

12/19/2012

Common Stock

73,389

73,389

D

Incentive Stock Option (right to buy)

$ 6.95

(5)

04/14/2015

Common Stock

29,159

29,159

D

Non-Qualified Stock Option (right to buy)

$ 6.95

(5)

04/14/2015

Common Stock

120,841

120,841

D

Incentive Stock Option (right to buy)

$ 2.92

11/04/2005

11/04/2013

Common Stock

33,333

33,333

D

Non-Qualified Stock Option (right to buy)

$ 2.92

11/04/2004

11/04/2013

Common Stock

66,667

66,667

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
HOLSTER ROBERT M 401 PARK AVENUE SOUTH NEW YORK, NY 10016	X		CEO and Chairman of the Board

Signatures

Robert M. Holster		12/12/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Transaction pursuant to 10b5-1 sales plan executed on December 15, 2005.
(2)	Brett Holster, son of Robert, owns these shares. The reporting person disclaims beneficial ownership.
(3)	Andrew Holster, son of Robert, owns these shares. The reporting person disclaims beneficial ownership.
(4)	Options vest as follows: 100,000 vesting on first anniversary, and 75,000 at the end of each quarterly period thereafter.
(5)	Options vest in 1/3 increments, with 1/3 vesting on grant date, and 1/3 vesting on each of the next two anniversary dates.

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