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Medicare News

For Immediate Release: Contact:
Thursday, May 22, 1997 CMS Office of Public Affairs
202-690-6145

For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov.

HCFA ANNOUNCES VERITUS MEDICARE SERVICES AS REPLACEMENT MEDICARE INTERMEDIARY

The Health Care Financing Administration announced today that Veritus Medicare Services, a unit of Highmark Inc., will replace Independence Blue Cross as the new Medicare intermediary in the eastern Pennsylvania counties of Philadelphia, Bucks, Montgomery, Chester, and Delaware. The Blue Cross and Blue Shield Association, HCFA's primary contractor for all Blue Cross plans serving as intermediaries, recommended Veritus.

Veritus, located in Pittsburgh, Pa., operated independently as a Medicare intermediary in most of Pennsylvania until the recent creation of Highmark in late 1996. Highmark is the new corporation formed by the consolidation of Veritus (Blue Cross of Western Pennsylvania) and Pennsylvania Blue Shield. With the addition of the five counties in eastern Pennsylvania, Veritus will process Medicare provider bills for all of Pennsylvania.

HCFA Administrator Bruce C. Vladeck said, "Veritus has proven to be an excellent performer as a Medicare intermediary. HCFA staff will work with Veritus and Independence Blue Cross to make the transition smooth as possible for both Medicare beneficiaries and providers."

Independence Blue Cross, which also serves as a regional home health and hospice intermediary for Delaware, Maryland, Pennsylvania, Virginia, West Virginia, and the District of Columbia, announced in January that it was ending its participation in the Medicare fee-for-service program.

In April, HCFA announced that IASD Health Services Corp. would replace Independence Blue Cross in processing home health and hospice bills in these jurisdictions. Independence Blue Cross' current Medicare contract is scheduled to expire on Sept. 30. Transition to both Veritus and IASD will be completed by that date.

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