Cigna to Become New Region C DME MAC

Washington

After nearly a year-long battle with CMS, Cigna Government Services has been named the new DME Medicare Administrative Contractor for Region C.

Beginning April 1, 2007, Cigna will be responsible for Medicare DME claims administration for Alabama, Arkansas, Colorado, Florida, Georgia, Louisiana, Mississippi, New Mexico, North Carolina, Oklahoma, Puerto Rico, South Carolina, Tennessee, Texas, U.S. Virgin Islands, Virginia and West Virginia. Approximately 13.4 million Medicare beneficiaries reside in the jurisdiction.

In January, CMS awarded the DME MAC contract to Palmetto GBA, but Cigna protested that decision, as well as CMS’ award of the Region D contract to Noridian.

In May, the Government Accountability Office denied Cigna’s protest for Region D but upheld its protest of the Region C award, requiring CMS to reopen discussions with potential contractors.

According to CMS, after evaluating the final revised proposals, it found the proposal from Cigna “offered the best overall value to the government” and ruled in its favor on Sept. 28. The contract includes a base period and four one-year options valued at approximately $144 million.

The transition from the DMERCs to the MACs took place as scheduled on July 1 for Regions A and B, awarded to The National Heritage Insurance and AdminaStar Federal, respectively. Noridian became the new Region D contractor on Oct. 1.