First Coast Service Options on Winning Team for New Medicare Contract

Wednesday, November 7, 2007 General News
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JACKSONVILLE, Fla., Nov. 6 First Coast Service Options,Inc., (FCSO), the primary Medicare administrator for Florida and Connecticut,announced today that the company is on the team that was recently awarded aMedicare Administrative Contract (MAC) by the Centers for Medicare andMedicaid Services (CMS). The MAC contract is for the jurisdiction thatincludes California, Nevada, Hawaii, American Samoa, Guam and the NorthernMariana Islands. The winning team was led by Palmetto GBA, one of thenation's largest Medicare administrators, headquartered in Columbia, S.C. Asa subcontractor to Palmetto, FCSO will perform provider audit, reimbursementand enrollment functions in the jurisdiction.

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The contract awarded to Palmetto GBA is for a base period of one year withfour one-year options and will start no later than June 2008. To perform thisnew work, FCSO will add more than 100 employees. New staff will be located inthe company's existing Jacksonville and Tampa offices and in a new fieldoffice in Camarillo, Calif., about one hour north of Los Angeles.

"This is a very significant win for FCSO, and demonstrates our ability towin in an increasingly competitive market and to grow scale beyond Florida,"said Curtis Lord, CEO of FCSO. "It also underscores the strength andeffectiveness of our strategic alliance with the prime contractor, PalmettoGBA."

MACs were created as part of the Medicare Prescription Drug, Improvementand Modernization Act of 2003 (MMA). This legislation was passed by Congressto improve Medicare Part A and Part B claims processing and other services forMedicare beneficiaries and health care providers. Medicare Part A helps coverfees from hospitals, skilled nursing facilities and other institutionalproviders. Part B covers fees from physicians, laboratories and otherpractitioners. As mandated by MMA legislation, MACs will operate in 15distinct, non-overlapping geographic jurisdictions that will be competitivelyprocured by CMS and fully operational by Oct. 2011.

FCSO contracts with CMS and the Blue Cross Blue Shield Association toprovide quality Medicare administrative services to more than 3 millionbeneficiaries and the health care providers who care for them in Florida andConnecticut. Services include claims processing, customer service, educationand outreach activities and functions that help ensure the integrity ofMedicare program payments. FCSO has more than 1,200 staff members at thecompany's headquarters in Jacksonville, Fla. and field offices in Miami,Orlando, Tampa and Meriden, Conn. FCSO is a wholly owned subsidiary of BlueCross and Blue Shield of Florida, and together the two companies have servedas a Medicare administrator since the inception of the Medicare program in1966. For more information concerning FCSO, please see its Web site

SOURCE First Coast Service Options, Inc.

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