[MMA News Now, Oct. 4, 2012] On Sept. 27, the Centers for Medicare and Medicaid Services awarded a contract to Indianapolis-based National Government Services, Inc. (NGS) for the Jurisdiction 6 A/B Medicare Administrative Contract (MAC), which administers Medicare Part A and Part B claims for covered services in Minnesota, Illinois and Wisconsin. NGS will replace Wisconsin Physicians Service (WPS), which has served as the Part B Medicare carrier for Minnesota since 2000.

NGS, a subsidiary of Wellpoint, Inc., will also administer Medicare billings from home health and hospice providers in 13 states and five U.S. territories. The current Medicare fiscal intermediaries and carriers for these Medicare workloads will continue in their responsibilities for several months while CMS and NGS implement the new contract. In addition to NGS, WPS and Noridian Administrative Services currently service some of the Medicare claims that will be transferred to the new contract.

Medicare Administrative Contracts are a result of a provision in the Medicare Modernization Act of 2003 that was designed to change the way CMS awards contracts to Medicare carriers and fiscal intermediaries—the companies hired by Medicare to process Medicare claims. The reform efforts are aimed at making Medicare contract awards more competitive and contracts more efficient. CMS will put the contracts up for bidding at least once every five years.

The MMA will provide further information on the transition to NGS as details emerge.