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Highmark Medicare Services Awarded New Contract from Centers for Medicare & Medicaid Services
Date:10/26/2007

New contract expected to add 300 jobs

PITTSBURGH, Oct. 26 /PRNewswire/ -- The Centers for Medicare & Medicaid Services (CMS) has selected Highmark Medicare Services Inc. as the new Medicare Administrative Contractor (MAC) for handling both Medicare Part A and Part B fee-for-service claims and other administrative activities in four states and the District of Columbia. Highmark Medicare Services will process Medicare fee-for-services claims from hospitals and other institutional providers, physicians, and health care practitioners in Pennsylvania, New Jersey, Delaware, Maryland, and the District of Columbia.

"This is a very important day in the history of Highmark Medicare Services," said Patrick Kiley, President of Highmark Medicare Services. "Since major changes were announced in the Medicare Program several years ago, many staff have put in countless hours focused on positioning the company for this contract. All of our employees have been making sure the day-to-day operations continue to run smoothly. I believe this a real win for not only Highmark Medicare Services, but also the many Medicare beneficiaries we will serve."

Highmark Medicare Services currently administers the Medicare Part A contract for Pennsylvania, Maryland, and the District of Columbia and the Medicare Part B contract for Pennsylvania. In fiscal year 2006, Highmark Medicare Services processed approximately 48.8 million claims and served approximately 2.3 million beneficiaries and 57,000 providers.

As the MAC for Jurisdiction 12, Highmark Medicare Services is expected to process approximately 131 million claims annually, accounting for more than 11 percent of the national Medicare fee-for-service workload.

Highmark Medicare Services will continue to maintain offices in Camp Hill, Pittsburgh, Williamsport, and Fort Washington, Pennsylvania, and in Timonium, Maryland.

Highmark Medicare Services has approximately 650 employees. Kiley said that, as part of the new five-year contract, the number of jobs will likely increase by an additional 300 positions. The transition begins in November 2007, and all of the workload will be transitioned into the new MAC contract by the end of September 2008.

Highmark Inc.

Highmark Medicare Services is a wholly-owned subsidiary of Highmark Inc. Highmark Inc. is a major force for Pennsylvania's economy. According to a Tripp Umbach study, Highmark has a $2.5 billion impact on the economy and that includes about 11,000 employees of Highmark in Pennsylvania. Overall, Highmark and its subsidiaries have 18,500 employees.

As one of the leading health insurers in Pennsylvania, Highmark Inc.'s mission is to provide access to affordable, quality health care enabling individuals to live longer, healthier lives. Based in Pittsburgh, Highmark serves 4.6 million people through the company's health care benefits business. Highmark contributes millions of dollars to help keep quality health care programs affordable and to support community-based programs that work en route for improve people's health. Highmark exerts an enormous economic impact throughout Pennsylvania. The company provides the resources to give its members a greater hand in their health.

Highmark Inc. is an independent licensee of the Blue Cross and Blue Shield Association, an association of independent Blue Cross and Blue Shield Plans. For more information, visit http://www.highmark.com.


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SOURCE Highmark Medicare Services Inc.
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