Back to Reimbursement & Market Access

    Medicare Administrative Contractor

    Private contractors that process Medicare Part A/B and DME claims and issue Local Coverage Determinations within their jurisdictions.

    Reviewed by Christian Espinosa, Founder, Blue Goat CyberLast reviewed May 9, 2026

    Definition

    Medicare Administrative Contractors (MACs) are private companies CMS contracts with under the Medicare Modernization Act of 2003 to process Medicare fee-for-service claims, enroll providers, conduct medical review, and issue Local Coverage Determinations (LCDs). The country is divided into A/B MAC jurisdictions and four DME MAC jurisdictions. As of 2025 the principal A/B MACs include Noridian, Palmetto, Novitas, NGS, CGS, First Coast, and WPS.
    What the regulation says
    Statutory basis: Section 911 of the MMA, codified at 42 USC 1395kk-1. LCD process: Chapter 13 of the Medicare Program Integrity Manual.

    What this means in practice

    Because each MAC issues its own LCDs, the same device can be covered in one jurisdiction and not another, a structural reality MedTech market-access teams must plan around. MolDX (run by Palmetto) is the most influential MAC sub-program for molecular diagnostics.

    Examples

    • A MedTech company developing a novel surgical tool must submit its reimbursement claims to the specific MAC responsible for the geographic region where the procedure was performed, adhering to that MAC's particular billing guidelines.
    • Before launching a new diagnostic test nationwide, a manufacturer discovered that different MACs had varying Local Coverage Determinations (LCDs), requiring a tailored market access strategy for each jurisdiction.
    • A hospital billing department received a denial for a medical device claim because the documentation submitted did not meet the specific medical necessity criteria outlined in the LCD issued by their regional Medicare Administrative Contractor.
    Common pitfalls
    • •Assuming a national LCD where only jurisdictional LCDs exist.
    • •Engaging only one MAC when a multi-MAC strategy is needed for national coverage.

    Frequently asked questions

    MACs are private contractors authorized under Section 911 of the Medicare Modernization Act of 2003, codified at 42 USC 1395kk-1, that process Medicare Part A, Part B, and DME claims within their assigned jurisdiction, enroll providers and suppliers, conduct medical review, and issue Local Coverage Determinations that govern coverage within that jurisdiction. This means a MAC's LCD can effectively decide whether a device or service is reimbursed at all in a given region, independent of FDA clearance or approval.
    Grouped by theme
    Cited by

    Where this term appears across MedTech Terms.

    Learning paths (1)

    Latest in MedTech

    Sources

    3 sources

    Every citation below opens the original document. Each is graded against our source-tier hierarchy so you can see what rests on binding law versus commentary.

    Tier 1Binding law and standards· 1Tier 2Regulator guidance and consensus· 1Tier 4Trade press and expert commentary· 1
    Link health: 3 verified· last checked 2026-06-20
    CMS·1Cornell LII·1AdvaMed·1
    1. 1
      CMS, Medicare Administrative Contractors
      Tier 2 Verified
      CMScms.gov
    2. 2
      42 USC 1395kk-1, Medicare Administrative Contractors
      Tier 1 Verified
      Cornell LIIlaw.cornell.edu
    3. 3
      AdvaMed - Payment & Coverage
      Tier 4 Verified
      AdvaMedadvamed.org

    Inline markers like [1] jump to the matching reference above.