CMS selects new claims payment for four states

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The Centers for Medicare and Medicaid Services (CMS) has awarded a five-year contract to Wisconsin Physicians Service Health Insurance (WPS) for the combined administration of Part A and Part B Medicare claims payment in Iowa, Kansas, Missouri and Nebraska.

The Madison, Wis.-based WPS is the third new Medicare administrative contractor (MAC) named by CMS, which is required by the Medicare Modernization Act (MMA) of 2003 to open competition under federal procurement rules. By 2011, a total of 15 new Medicare contractors will cover every state and the District of Columbia.

WPS will serve as the first point of contact for the processing and payment of service claims from hospitals, nursing facilities, physicians and practitioners in the four states.

The MAC contract, which carries an approximate value of $225 million over five years, will fulfill the requirements of the MMA’s contracting reform provisions.

WPS will immediately begin implementation activities and will assume full responsibility for the claims processing work in its four-state jurisdiction no later than Sept. 9, 2008.