Region D DMERC adds Part A capabilities
November 22, 2004
NASHVILLE, Tenn. - Â CIGNA and BlueCross BlueShield of Tennessee last week announced the formation of a joint venture to pursue new Medicare contracting opportunities at CMS.Â Each company will hold a 50% interest in the joint venture called Capstone Government Solutions.
The venture was spurred by an MMA mandate that requires contractors to be able to offer the full suite of Part A and Part B Medicare contract services.
CIGNA HealthCare Medicare Administration and BCBS (doing business as Riverbend Government Benefits Administrator), have extensive experience each administering Medicare Part B and Part A respectively. CIGNA handles HME claims as the Region D DMERC.
“This is a very promising undertaking for both organizations, and one that will allow us to pursue new opportunities for business growth,” said David Cordani, president, health segments for CIGNA HealthCare.Â “I’m excited by the prospect of our companies pooling our respective strengths and capabilities for the benefit of people who depend on us for Medicare services.”
The two companies currently administer portions of the Medicare program in 49 states, paying over $14 billion annually from the Medicare trust fund to providers and beneficiaries.