The CMS has awarded a contract worth about $176 million to administer Part A and Part B Medicare claims payment in Maine, Massachusetts, New Hampshire, Rhode Island and Vermont, according to a CMS news release.
The new contractor, National Heritage Insurance Corp., will be taking over the duties now performed by three claims processors and two carriers in these five states, serving as the first point of contact for the processing and payment of Medicare fee-for-service claims from hospitals, skilled-nursing facilities, physicians and other healthcare practitioners.
NHIC, the 10th new Part A/Part B Medicare administrative contractor to be named by the CMS, will be headquartered in Hingham, Mass., with other operational sites in Boston and Quincy, Mass., and Biddeford, Maine.
Required by the Medicare Modernization Act of 2003, the Medicare administrative contracts are part of an effort to streamline the fee-for-service payment system. The contractors are all selected in open competition under federal procurement rules.
CMS awarded the first Medicare administrative contract in July 2006 to Noridian Administrative Services, headquartered in Fargo, N.D. By 2011, a total of 15 new Part A/Part B Medicare contractors will be operating in every state and the District of Columbia. -- by Jennifer Lubell