BCBS subsidiary to lay off 264 employees after losing 3-state Medicare contract

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Birmingham, Ala.-based Cahaba Government Benefit Administrators, a wholly-owned subsidiary of Blue Cross and Blue Shield of Alabama, will lay off 264 workers after losing a Medicare administrative contract, the Birmingham Business Journal reports.

On Sept. 7, CMS selected Columbia, S.C.-based Palmetto Government Benefit Administrators as the Medicare Part A and Part B administrative contractor for Alabama, Georgia and Tennessee. Palmetto will take over the work from Cahaba GBA by Feb. 25, which includes processing Medicare claims for hospitals and physicians across the three states.

"We are disappointed with CMS' decision," David Brown, president of Cahaba GBA, told Birmingham Business Journal. "We will continue to pursue future contract opportunities with CMS and remain committed to meeting the needs of CMS, healthcare providers and the Medicare beneficiaries."

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