Date: Friday, Oct. 18, 1996
FOR IMMEDIATE RELEASE
Contact: HCFA Press Office (202) 690-6145

HCFA Announces Replacement Intermediaries For Aetn

The Health Care Financing Administration announced today that it has selected new Medicare Part A intermediaries to process claims for some providers now served by the Aetna Life Insurance Company.

Hospitals and skilled nursing facilities whose claims are now handled by the Aetna Life Insurance Company will have the opportunity to choose either Mutual of Omaha or a Blue Cross Plan which contracts with Medicare. In states where a local Blue Cross P lan will not be participating, providers will be offered another Blue Cross Plan. Aetna plans to leave the Medicare claims processing business by Sept. 30, 1997.

Specialty claims processing now done by Aetna will be divided among three intermediaries:

- Blue Cross and Blue Shield of South Carolina (Palmetto Government Benefits Administrators) will be responsible for home health care and hospice claims in Alabama, Florida, Georgia and Mississippi; - Blue Cross and Blue Shield of Tennessee (Riverbend Government Benefits Administrator) will handle claims from freestanding rural health clinics, Christian Science Sanitoria, organ procurement organizations, histocompatibility laboratories, and Limite d Purpose Insurance Companies; - Blue Cross and Blue Shield of Wisconsin (United Government Services) will process claims for federally qualified health centers.

HCFA Administrator Bruce C. Vladeck noted that the new contractors have strong records in customer service, internal controls, and payment safeguards. "We are pleased that Aetna is offering full cooperation to assure smooth transitions to the se new contractors. Medicare beneficiaries and providers in all the affected states can be sure there will be no interruption of service," said Vladeck.

HCFA is still reviewing options for new carriers to assume Aetna's Medicare Part B claims processing business.

Note: HHS press releases are available on the World Wide Web at: http://www.hhs.gov.