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Contractor Transition in Regions C & D Delayed
ASHEVILLE, NORTH CAROLINA (May 11, 2006)
CMS has announced that the transition from DMERCs to Medicare Administrative Contractors (MACs) in Regions D and C will be delayed three months from July 1 to Oct. 1. The transition to MACs in Regions A and B will occur on July 1 as previously announced. The delay in Regions C and D is due to a protest filed by Cigna Government Services, the current Region D DMERC, who lost their bid in Regions C and D. The Government Accountability Office (GAO) will rule on the protest but is not expected to do so until May. Palmetto GBA won the Region C contractor bid and Noridian Administrative Services won the Region D bid. Noridian and Palmetto have stopped work on the transition until there is a ruling on the protest. The contractors are part of Medicare"s reconfiguring of the DMERCs into two specialty contractors. The MACs will oversee claims processing, customer service and other day-to-day operations. The Program Safeguard Contractors (PSA), overseen by a medical director, are responsible for program integrity duties and assumed their duties March 1. For additional information regarding the transition, please view the CMS article:
http://www.cms.hhs.gov/MedicareContractingReform/ 08_DurableMedicalEquipmentMedicareAdministrativeContractor.asp