National Heritage Insurance Co., a Plano, Texas, subsidiary of Electronic Data Systems, has been chosen as the new Medicare Part B administrator in California.
NHIC will assume the contract formerly held by Blue Shield of California, which is worth about $25 million a year.
Blue Shield did not renew its contract with HCFA because the plan is entering the market with a Medicare risk product.
NHIC will take over San Francisco-based Blue Shield's offices in Chico and Marysville and retain most of the Medicare employees currently employed by the Blues plan.
In fiscal 1995, Blue Shield of California processed 23.5 million claims and paid about $1.6 billion in benefits.
The transition is expected to be complete by early 1997.