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Pete Harmon's HFS Blog

Health Financial Systems – Director, Government Relations

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Category: MAC News

CMS is changing the MAC bidding/award process to compress the original 15 MACs down to 10.  The current Jurisdictions 1, 9, 10, 11, and 12, will remain as is.  Jurisdictions 2 and 3; 4 and 7; 5 and 6; 8 and 15; 13 and 14; will be combined into 5 bids/awards.  For the details on this change, see the link below, or go to www.hfssoft.com, and click on the News Tab.

http://www.hfssoft.com/pdfs/MAC-Round2-Special-Notice.pdf

DME Re-compete:

In 2006, the Centers for Medicare and Medicaid Services (CMS) awarded the first MAC contracts to administer Medicare claims for DME benefits in jurisdictions A and B.  Under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) the Secretary of Health and Human Services must re-compete its Medicare Administrative Contractors contracts every five (5) years.  Therefore, on Thursday, December 30, 2009, CMS issued a solicitation for the first “second generation” MAC contractors for DME Jurisdictions A and B.  Currently, National Heritage Insurance Company (NHIC) is serving as the DME MAC in Jurisdiction A, and National Government Services (formerly doing business as AdminaStar Federal Inc.) is serving as the DME MAC in Jurisdiction B.  CMS anticipates awarding these contracts and fully transitioning the workloads to new MAC contracts by no later than December 2010.

CMS recently pulished updated info about MAC Jurisdiction J-7 (AR, LA, MS).  CMS said “In taking corrective action CMS plans to issue a new solicitation to procure the A/B Medicare Administrative Contractor Jurisdiction 7 workload previously solicited under RFP-CMS-2007-0002.  CMS anticipates initiating the new procurement action in calendar year 2010.”  In essence, CMS is re-bidding J-7, so who knows when we will see a final award!

No sooner was J-7 (Arkansas, Louisiana, Mississippi) awarded to Trailblazer Health – July 10, 2009, than it was protested (by Pinnacle, I think) – July 21, 2009. Thus, CMS issued a “stop order” for Trailblazer to cease any work on J-7 until the protest is resolved. As they say on the evening news, “more to come”!
MAC Jurisdiction 7 (AR, LA, MS) has been under protest for some time, and was recently resolved by awarding it to TrailBlazer Health Enterprises, LLC. The award was made July 9, 2009.
We were expecting to hear some results of the MAC protests, by June 30, 2009, for Jurisdictions: J-2, J-6, J-7, J-8, J-11, and J-15, but did not see any final determinations. As I see them, I will report them here. If you have any info about these protests, please let me know at pete@hfssoft.com and I will update this Blog.
On 1/7/2009, CMS announced the final Five MAC awards. Jurisdiction 6 (IL, MN, WI) was awarded to NAS, Noridian Administrative Services. Jurusdiction 8 (IN, MI) was awarded to NGS, National Government Services. Jurusdiction 10 (AL, GA, TN) was awarded to CAHABA GBA, Cahaba Government Benefit Administrators, LLC. Jurusdiction 11 (NC, SC, VA, WV) was awarded to Palmetto GBA, Palmetto Government Benefit Administrators, LLC. Jurisdiction 15 (OH, KY) was awarded to Highmark Medicare Services (HMS).

This completes all 15 MAC awards. HFS is the vendor for 11 of the 15. There are still some protests/appeals to be resolved, so the following list is subject to change.

The list is:
MAC Jurisdiction #1 (CA, HI, NV) awarded to Palmetto GBA.
MAC Jurisdiction #2 (AK, ID, OR, WA) awarded to NHIC.
MAC Jurisdiction #3 (AZ, ND, MT, SD, UT, WY) awarded to Noridian.
MAC Jurisdiction #4 (CO, NM, OK, TX) awarded to Trailblazer.
MAC Jurisdiction #5 (IA, KS, NE, MO) awarded to WPS.
MAC Jurisdiction #6 (IL, MN, WI) awarded to Noridian. Also includes HHA.
MAC Jurisdiction #7 (AR, LA, MS) awarded to Pinnacle.
MAC Jurisdiction #8 (IN, MI) awarded to NGS.
MAC Jurisdiction #9 (FL, PR) awarded to FCSO.
MAC Jurisdiction #10 (AL, GA, TN) awarded to CAHABA GBA.
MAC Jurisdiction #11 (NC, SC, VA, WV) awarded to Palmetto GBA. Also includes HHA.
MAC Jurisdiction #12 (DE, DC, MD, NJ, PA) awarded to Highmark.
MAC Jurisdiction #13 (CT, NY) awarded to NGS.
MAC Jurisdiction #14 (ME, MA, NH, RI, VT) awarded to NHIC. Also includes HHA.
MAC Jurisdiction #15 (OH, KY) awarded to Highmark. Also includes HHA.

The four DME jurisdictions (A, B, C, D) are:
A = CT, DE, DC, ME, MD, MA, NH, NJ, NY, PA, RI, VT.
B = IL, IN, KY, MI, MN, OH, WI.
C = AL, AR, CO, FL, GA, LA, MS, NM, NC, OK, PR, SC, TN, TX, U.S. Virgin Is., VA, WV.
D = AK, Amer. Samoa, AZ, CA, Guam, HI, ID, IA, KS, MO, MT, NE, NV, ND, Northern Mariana Is., OR, SD, UT, WA, WY.

As of 9/15/2008, the protest for MAC Jurisdiction 2 appears to have been upheld, and new bids are to be submitted. We will wait and see what award is issued.
On Friday, 9/12/2008, CMS awarded First Coast Service Options, Inc. (FCSO), MAC Jurisdiction 9, for FL, PR, and the Virgin Islands. The transition to MAC #9 is to be done no later than March 2009.
MAC Jurisdiction #7 has been awarded. The Centers for Medicare & Medicaid Services (CMS) today (6/11/2008) announced that Pinnacle Business Solutions, Inc. (PBSI) has been awarded a contract of up to five years for the combined administration of Part A and Part B Medicare claims payment in Arkansas, Louisiana and Mississippi. PBSI will serve as the first point of contact for the processing and payment of Medicare fee-for-service claims from hospitals, skilled nursing facilities, physicians and other health care practitioners in the three states. As the A/B MAC contractor, PBSI will immediately begin implementation activities and will assume full responsibility for the claims processing work in its three-state jurisdiction no later than February 2009. PBSI is headquartered in Little Rock, Arkansas.