Managed Care Report

• Blue Cross of California (BCC; Thousand Oaks, CA) and its parent company, WellPoint Health Networks, have decided to discontinue BCC’s participation as a Medicare fiscal intermediary, effective Dec. 1. The company said BCC has served as the contractor for processing Medicare Part A claims in California, Hawaii, and Nevada, and home health and hospice claims for providers and Medicare beneficiaries in Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, and Washington. BCC will continue its Medicare risk HMO and Medicare supplement offerings, and this action will not affect those products in any way, the company said. United Government Services (Milwaukee), a wholly owned subsidiary of Blue Cross and Blue Shield of Wisconsin (Milwaukee), was awarded a $38.5 million contract to process the Medicare Part A claims in California, Hawaii, and Nevada, and the home health and hospice claims for providers and Medicare beneficiaries in Alaska, Arizona, California, Hawaii, Idaho, Nevada, Oregon, and Washington for BCC. United Government, which had $17 million in revenues in FY96, has grown to revenues of more than $100 million with the addition of the new contract, the company said. Under the contract, United Government will process about 8 million Medicare Part A and regional home health and hospice claims and provide customer service, medical review, fraud and abuse detection, and auditing of medical facilities that submit claims to Medicare.