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Date:  August 29, 1995
For Release:  Immediately
Contact:  HCFA Press Office (202) 690-6145

Medicare's Part B program in Minnesota is currently serviced by two carriers, MetraHealth and Blue Cross and Blue Shield of Minnesota (BCBSM). Both current carriers expressed an interest in assuming the entire workload in Minnesota. As a result, HCFA received proposals from each contractor about assuming the entire workload in Minnesota to achieve greater efficiency in administration, greater uniformity and efficiency in operations, and improved control of Medicare program expenditures.

HCFA evaluated both proposals and accepted MetraHealth's as being most advantageous to the government. MetraHealth has extensive experience as a Medicare carrier. The company paid approximately $2 billion in total benefits and processed 3.8 million claims in Minnesota in fiscal year 1994.

At the same time, Vladeck said, BCBSM will remain as an intermediary in the Medicare program serving hospitals and skilled nursing facilities in the state. "BCBSM has served beneficiaries, and the physician and provider communities, well over the past 30 years and they will be considered for other Medicare work in the future," he added.

MetraHealth will maintain its office in Minnesota. HCFA expects the transition to be completed by March 31.

"Medicare beneficiaries and providers in Minnesota can be sure there will be no interruption of service," Vladeck said.