Cigna Gets OK as Region C DME MAC; Effective Date in Limbo

WASHINGTON–Cigna Government Services has won a year-long
tug-of-war with Palmetto GBA to become the government’s Region C
Medicare Administrative Contractor, according to a recent ruling by
the General Accounting Office.

The claims processing contract, valued at $144 million, includes
a one-year base period and four one-year options, but the company
will not take over its duties on April 1 as originally scheduled,
officials said Friday.

“We are very excited about this opportunity to serve some new
customers in Jurisdiction C,” said Gloria Barone, public relations
director or Cigna. “But as of this date, we have not done any of
the implementation work and we don’t have a date for the
implementation. We are still speaking with CMS and going into a
review and approval process with them about the
implementation.”

Palmetto spokesman Billy Quarles said it was likely the
transition would occur between June 1 and Aug. 1. “We will work
closely with Cigna Government Services to complete the transition
as smoothly as possible and in a manner that minimizes any impact
to the people with Medicare and their suppliers,” he said.

The GAO said Friday that it is still working on the release of
public information concerning its decision.

The contract had been in question since last January when CMS
awarded the bid to Palmetto, which has been the Region C DMERC
since 1993. Cigna, which had also bid on the contract, filed a
protest, and the GAO ruled in its favor in late September. Palmetto
subsequently protested that decision, which once again placed the
contract in limbo until the GAO made its final ruling earlier this
month.

Palmetto currently operates the National Supplier Clearinghouse
and acts as the Statistical Analysis Durable Medical Equipment
Regional Contractor. Those new contacts have not yet been settled
by CMS.

But the agency has selected Columbia, S.C.-based Palmetto to
help administer its DME competitive bidding program. As a DMEPOS
Competitive Bidding Implementation Contractor, Palmetto will
prepare the request for bids, perform bid evaluations, select
qualified suppliers and set payments for all competitive bidding
areas.