The CMS has named Wisconsin Physicians Service Health Insurance Corp. as its third new Medicare administrative contractor. The Madison-based company has been awarded a five-year contract worth $225 million to administer Part A and Part B Medicare claims payments in Iowa, Kansas, Missouri and Nebraska.
Wisconsin Physicians Service will serve as the first point of contact for the processing and payment of fee-for-service claims from hospitals, nursing facilities, physicians and practitioners in the four states. The company will have the opportunity to earn additional fees based on its ability to meet or exceed the performance requirements set by the CMS. The administrative contract was awarded in open competition under federal procurement rules.
Medicare administrative contractors are required by the Medicare Modernization Act of 2003. By 2011, 15 new Medicare contractors will cover every state and the District of Columbia. The first two contractors are processing Medicare claims in 10 Western states. -- by Jennifer Lubell