Medicare Administrative Contractor Statement of Work

Medicare is a government-funded healthcare program that serves millions of Americans who are 65 years old and above. And just like any other federal program, it needs to be properly administered, managed, and regulated. This is where the Medicare Administrative Contractor (MAC) comes in.

What is MAC?

A Medicare Administrative Contractor is a private entity that is contracted by the Centers for Medicare and Medicaid Services (CMS) to carry out various administrative functions on behalf of the Medicare program. MACs are responsible for tasks such as processing claims, answering inquiries from beneficiaries, and ensuring that healthcare providers comply with Medicare rules and regulations.

MACs are independent organizations that are contracted by CMS to carry out specific tasks. They can be divided into two categories: A/B MACs and DME MACs. A/B MACs are responsible for processing claims for all Medicare Part A and Part B services, while DME MACs process claims for durable medical equipment, prosthetics, orthotics, and supplies.

The Statement of Work (SOW)

The Statement of Work (SOW) is a document that outlines the specific tasks and responsibilities that a contractor (in this case, the MAC) is expected to perform. The SOW serves as a guide to the contractor, detailing the scope of work, the deliverables, and the expected outcomes. It also outlines the performance standards that the contractor must meet to ensure that Medicare beneficiaries receive high-quality services.

The SOW is a crucial document because it sets the expectations for the MAC`s performance. It outlines the specific tasks that the MAC must perform, the quality standards that it must meet, and the metrics that it must report on. The SOW also includes information on how the MAC will be paid, how often it will be audited, and what penalties will be imposed if it fails to meet the performance standards.


The Medicare program is essential to millions of Americans, and it is crucial that the MACs who administer the program perform their duties effectively and efficiently. The Statement of Work is a critical document that outlines the expectations for the MAC`s performance, and it is essential that the MACs meet these expectations to ensure that Medicare beneficiaries receive high-quality services. As such, it is crucial that CMS works closely with MACs to ensure that they are properly managed and regulated to provide the best possible service to beneficiaries.