GAO Suggests Do-Over for MAC Region C Contract Bid
Washington The Government Accountability Office has sided with Cigna in its claim that CMS unfairly selected the new Medicare Administrative Contractor
Washington
The Government Accountability Office has sided with Cigna in its claim that CMS unfairly selected the new Medicare Administrative Contractor for Region C and is recommending that CMS reopen discussions with potential contractors.
Cigna Government Services, the current DMERC for Region D, filed a protest earlier this year after it lost MAC contract bids on both Regions C and D. CMS instead awarded Palmetto GBA the Region C contract, and Noridian Administrative Services the Region D contract.
According to the GAO, the agency found that after the firms submitted their final proposals for Region C, CMS only communicated with Palmetto, which then revised its proposal. In a May 4 statement, the GAO recommended that before making a final decision, CMS renew discussions with potential contractors and give them the same opportunity to make proposal revisions.
The DMERC-to-MAC transition will still take place as scheduled for Regions A (National Heritage Insurance Company, replacing HealthNow) and B (AdminaStar Federal) on July 1. Contracts for the Region C and D DMERCs have been extended to Sept. 30.
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