Medicare Administrative Contractor

A Medicare Administrative Contractor is a company that processes claims for Medicare. Medicare Contracting Reform is a major component in achieving health care security for beneficiaries. Section 911 of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 mandates that the Secretary for Health & Human Services replace the current contracting authority to administer the Medicare Part A and Part B FFS programs, with the new Medicare Administrative Contactor authority.