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.