The contract is the first of 15 in a CMS initiative to consolidate the number of contractors that process Medicare claims. Medicare Part A fiscal intermediaries currently process institutional claims and Part B carriers process professional claims.
For the next five years CMS will award new contracts to vendors that will process both sets of claims in a specific region. Noridian will be responsible for processing Part A and Part B claims in Arizona, Montana, North Dakota, South Dakota, Utah and Wyoming.
Its contract is for one base year valued at $28.9 million and four option years. The vendor is expected to assume full responsibility in these states in March 2007.
The consolidation of Medicare contractors, mandated under the Medicare Modernization Act of 2003, requires the new contracts be put up for competitive bidding at least every five years.