Cigna Government Services (CGS) has received a new jurisdiction 15 medicare parts A and B administrative contract (J15 A/B MAC) from Centers for Medicare & Medicaid Services (CMS).

Under the terms of new agreement, the company will provide administration, processing and paying of medicare physician and hospital claims for the states of Kentucky and Ohio.

In addition, the contract also includes home health and hospice claim processing services for the states of Colorado, Delaware, Iowa, Kansas, Maryland, Missouri, Montana, Nebraska, North Dakota, Pennsylvania, South Dakota, Utah, Virginia, West Virginia, Wyoming and the District of Columbia.

According to Cigna, the medicare part A is for hospitalization coverage and medicare part B is for physician and other services provided outside the hospital. The expected value of new jurisdiction 15 A/B MAC contract is around $243m.

The medicare part A work will be subcontracted to Riverbend Government Benefit Administrators,(RGBA), which will be consisting of a one year base period with four one-year optional periods.

Jean Rush, president of CGS, said: “CGS is committed to providing consistent and efficient Medicare claims administration services through our valued partnership with CMS.”