Date: August 8, 1995
For Release: Immediately
Contact: HCFA Press Office (202) 690-6145
HCFA Approves the Selection
of Replacement Contractors
Bruce C. Vladeck, administrator of the Health Care Financing Administration, has approved the selection of Blue Cross and Blue Shield of Texas as the subcontractor to take over the Medicare Part A workload in Colorado and New Mexico.
The Blue Cross and Blue Shield Association had previously announced its selection of Blue Cross and Blue Shield of Texas as its Part A subcontractor.
Vladeck also has announced HCFA's selection of Blue Cross and Blue Shield of South Carolina to assume the Medicare regional home health and hospice workload in Arkansas, Louisiana, New Mexico and Texas.
"Both companies have a strong record of effective customer service, reliability in bill processing and safeguarding Medicare trust funds," Vladeck said. "We are pleased that such strong companies are assuming these responsibilities."
New Mexico Blue Cross and Blue Shield, Inc., announced on June 2 its decision not to continue as the Colorado and New Mexico Part A intermediary. Blue Cross and Blue Shield of Texas will process Part A claims submitted on behalf of beneficiaries by hospitals, skilled nursing facilities and certain other providers of services.
New Mexico Blue Cross and Blue Shield, Medicare's sixth-largest intermediary, paid $3.3 billion in total benefits and processed 4.9 million bills in fiscal year 1994.
"The new Part A replacement contractors and New Mexico Blue Cross are committed to working in full cooperation with HCFA to achieve a smooth transition without any interruption of services to Medicare beneficiaries and health care providers," Vladeck said.
Vladeck said that both Blue Cross and Blue Shield of Texas and Blue Cross and Blue Shield of South Carolina "have histories of excellent performance in Medicare operations and experience with Medicare transitions."
Blue Cross and Blue Shield of Texas will establish an office in the Albuquerque, N.M., metropolitan area and will offer positions to a number of New Mexico Blue Cross employees who work in Medicare Part A. These transitions are expected to be completed by year's end.