Fargo-based Noridian Administrative Services has learned that it did not win a $150 million, five-year contract to provide Medicare administrative services in four states starting in December.
NAS submitted a bid to Washington, D.C.-based Centers for Medicare and Medicaid Services (CMS) in January 2007 to retain Medicare administrative services that it had previously provided in Washington, Oregon, Alaska and Idaho, said Jay Martinson, chief operating officer and executive vice president for Noridian.
On Tuesday, Noridian learned that the contract was awarded to National Heritage Insurance Corp., a Maine-based CMS provider with offices in 13 states. The company submitted a $148 million bid to secure the contract, Martinson said.
The contract involves work previously done by about 350 of Noridian's 1,129 employees, Martinson said.
The impact could result in layoffs. "It's too early to tell," said Martinson.
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Noridian may protest the outcome of the bid selection, he said.
"We have to get debriefed first by CMS as to why they didn't choose us," said Paul O'Donnell, NAS vice president of Medicare operations.
"If we still feel we have the best value, we will challenge it," Martinson said.
Noridian Administrative Services, a subsidiary of Noridian Mutual Insurance Co., was launched in 2002 to handle federal Medicare administration in 12 states serving more than 125,000 health care providers.
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