A Pennsylvania company will be creating 480 jobs to handle a new assignment to process 78 million Medicare fee-for-service claims per year for the Centers for Medicare and Medicaid Services.

Highmark Medicare Services, Camp Hill, Pa., a unit of Highmark Inc., Pittsburgh, has won the CMS Medicare FFS claims processing contract for Kentucky and Ohio.

Highmark will handle FFS claims from physicians, hospitals and other health care providers, Highmark says.

The contract also includes the processing of home health and hospice Medicare FFS claims for Colorado, Delaware, District of Columbia, Iowa, Kansas, Maryland, Missouri, Montana, Nebraska, North Dakota, Pennsylvania, South Dakota, Utah, Virginia, West Virginia, and Wyoming.

In October 2007, Highmark won a contract to handle Medicare Part A and Part B claims for Delaware, the District of Columbia, Maryland, New Jersey, Pennsylvania and parts of Virginia.

Highmark Medicare Services now has 950 employees in Maryland and Pennsylvania.