Palmetto’s Contract Challenge Fails In Court

Palmetto’s Contract Challenge Fails In Court

 

The U.S. Court of Federal Claims has tossed out a suit brought by Palmetto GBA LLC and CGS Administrators LLC who lost a $373 million Medicare administrative contract, following the U.S. Government Accountability Office (GAO) rejection of their bid protest of the award to Noridian Administrative Services LLC.

The court dismissed the case brought by the two contractors, which protested the U.S. Department of Health and Human Services’ decision to choose Noridian to provide administrative services for Medicare Part A and Medicare Part B fee-for-service benefit claims for Jurisdiction 1, which includes California.

Jurisdiction 1 will now be Jurisdiction E and administered Noridian Administrative Services LLC, which is also California’s Medicare contract administrator for durable medical equipment (DME). CMS and Noridian will now move forward with implementation of the new contract and expects the process to complete by mid-September 2013.

The California Podiatric Medical Association has and will continue to work closely with both CMS and Noridian to ensure a smooth transition. CPMA will also be monitoring the transition closely and will provide members with additional information as it becomes available.