Last week, we reported that the Centers for Medicare & Medicaid Services (CMS) had cleared the way for Palmetto GBA to take over as the administrator of Medicare Parts A and B in North Carolina and other southern states.  (Original post here.)  This means that Palmetto would become the new Medicare Administrative Contractor (MAC) in NC, a role currently held by CIGNA Government Services.

NCMS learned this week that CIGNA Government Services, hoping to retain its status as the current MAC, has filed a formal protest with the U.S. Government Accountability Office (GAO) over the award to Palmetto.  Until this protest is resolved, Palmetto is prohibited from working as the new MAC.  CIGNA Government Services will continue to serve as the Part B MAC during the protest period.

Palmetto anticipates a decision from the GAO concerning the protest this September.