CMS Awards National Supplier Clearinghouse Contract to Palmetto GBA

July 23, 2008

COLUMBIA, SC – July 21, 2008 – Palmetto GBA announced that it has been awarded a contract to continue serving as the federal Medicare program’s National Supplier Clearinghouse for companies that provide durable medical equipment, prosthetics, orthotics and supplies.

The Centers for Medicare & Medicaid Services (CMS) awarded Palmetto GBA a one-year base contract with four one-year options. If all options are exercised, the contract will have a value of approximately $76 million.

Palmetto GBA has held the National Supplier Clearinghouse (NSC) contract since 1993. Responsibilities include issuing, and recommending revocations of, Medicare billing privileges for medical equipment suppliers to ensure that only accredited, qualified suppliers are enrolled in the Medicare program. The National Supplier Clearinghouse also is required to establish and maintain programs to prevent and detect fraud.

We are extremely proud to continue the important work of the NSC, said Bruce Hughes, president of Palmetto GBA. CMS has demonstrated its confidence that Palmetto GBA will carry out the responsibilities as efficiently as possible while providing quality service to medical equipment suppliers and the Medicare program.

Our NSC employees work every day to make sure Medicare beneficiaries can obtain the medical equipment and supplies they need from suppliers that meet Medicare standards. We look forward to performing these duties for years to come.

Palmetto GBA is headquartered in Columbia, S.C., with offices in South Carolina, Georgia, Ohio and Illinois. Its principal business is providing administrative services for the Medicare health benefit program. Palmetto GBA is an independent licensee of the Blue Cross and Blue Shield Association.