Noridian doubles its federal business volume with new contract

Noridian Administrative Services (Noridian), Fargo, ND has been awarded a five year Medicare claims processing contract from the U.S. Department of Health and Human Services’ Centers for Medicare & Medicaid Services (CMS), more than doubling its volume of federal business.

Noridian will be the Medicare Administrative Contractor (MAC) for Medicare Part A and Part B for California, Nevada, Hawaii, Guam, American Samoa and the Northern Mariana Islands — Jurisdiction E (JE). This area represents 9 percent of the total volume of Medicare Fee-for-Service claims administration business nationwide. Combined with its other existing Medicare claims contracts, Noridian will now administer a total of approximately 15 percent of Medicare’s national volume of business.

According to Paul O’Donnell, vice president of Medicare Operations at Noridian, the JE contract will result in staff increases of over 500 employees, many of them in North Dakota, California and throughout the country.

“We are extremely excited to receive the JE contract,” O’Donnell said. “I think by awarding us this contract, CMS is not only recognizing our past performance record as a MAC, but also acknowledging our ability to execute successful workload implementations that minimize risk to all stakeholders.”

Medicare Part A claims are submitted by health care providers, such as hospitals, skilled nursing facilities and other institutional providers. Medicare Part B claims are submitted by physicians, laboratories and other practitioners.

CMS awarded its first Part A/Part B MAC contract, Jurisdiction 3, to Noridian in July 2006. In August 2011, Noridian was awarded the Jurisdiction F contract, which encompasses benefit administration responsibilities for Medicare Part A and B in 10 western states. In addition, Noridian currently administers the Durable Medical Equipment MAC for Jurisdiction D, Medicare Part A for Minnesota, and a variety of other state and federal contracts.

“I believe our past performance record in partnering with the government and continued innovation in those contracts were undoubtedly factors in CMS’s award decision,” O’Donnell said.

The new contract will be implemented over the next several months.

About Noridian

Noridian, a wholly owned subsidiary of Noridian Mutual Insurance Company, delivers innovative business solutions for government agencies and private enterprise to reduce cost and enhance value in the health care industry. Noridian has served as a government claims contractor for Medicare since its inception and supports Medicaid programs in multiple states. The company provides business processing solutions nationwide with employees located throughout the country.

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