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New MAC Contract Announced by CMS

Posted By Administration, Wednesday, January 25, 2012

The CMS announced that it awarded a new, $304 million dollar, five-year contract to Palmetto GBA, to become the new Medicare Administrative Contractor (MAC) for the states of North Carolina, South Carolina, Virginia and West Virginia.

Palmetto had originally been awarded this contract in January 2009, but another bidder had protested the award. CMS reaffirmed its decision after review of the protest.

The MAC program, created under the Medicare Modernization Act of 2003, was designed phase out the previous system in which the Medicare Part B claims for physician services were processed by Medicare Carriers and the Medicare Part A claims for hospital services were processed by Fiscal Intermediaries. MACs, such as Palmetto will process both Part A and Part B claims in their jurisdictions.

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