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.
