1. Organ- ization under contract to the state to process claims for a state Medicaid program. Also see A/B jurisdictions . 2. Insurance carrier that enters into an agreement with the Centers for Medicare and Medicaid Services (CMS). It receives and processes claims from physicians, hospital facilities, other suppliers of service, and durable medical equipment (DME) for Parts A and B of Medicare. Medicare contractors must have the provider customer service program (PCSP) in place to assist physicians and their staff in understanding and complying with Medicare’s operational processes, policies, and billing procedures. Formerly referred to as fiscal intermediary , Medicare carrier, fiscal agent, Medicare Part B carrier , or contractor . Also see Medicare Contracting Reform (MCR) and A/B jurisdiction .