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Medicare News

For Immediate Release: Contact:
Tuesday, March 04, 1997 CMS Office of Public Affairs
202-690-6145

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

NATIONAL HERITAGE INSURANCE COMPANY NAMED AS NEW MEDICARE PART B CARRIER

The Health Care Financing Administration today announced the selection of the National Heritage Insurance Company as the new Medicare Part B carrier for Massachusetts, Vermont, New Hampshire and Maine. Blue Cross and Blue Shield of Massachusetts, which currently processes physician and supplier claims in these states, is ending its Medicare contracts.

\National Heritage, a subsidiary of Electronic Data Systems (EDS), recently replaced Blue Shield of California as the Medicare carrier for northern California. EDS currently serves as a subcontractor to Blue Cross and Blue Shield of Massachusetts for claims processing.

"HCFA staff are working to guarantee a smooth transition to the new carrier," said HCFA Administrator Bruce C. Vladeck. "Both the incoming and outgoing carriers are cooperating fully, and Medicare beneficiaries and providers can be assured there will be no interruption of service."

National Heritage has indicated that it will hire many of the current Blue Cross and Blue Shield of Massachusetts Medicare staff, and that Medicare Part B operations will remain in Hingham, Massachusetts. The transition to the replacement carrier is due to be completed by August 1, 1997.

Blue Cross and Blue Shield of Massachusetts announced in January that it would end both its Medicare Part A and Part B contracts. HCFA will announce a replacement Medicare Part A intermediary for Massachusetts soon.

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