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Medicare Contracting Reform

Vision of Future Fee-for-Service Medicare Environment

In December 2003, Congress passed the Medicare Prescription Drug, Improvement, and Modernization Act (MMA) of 2003.  Under section 911 of the MMA, Congress requires that CMS replace the current fiscal intermediary (FI) and carrier contracts with competitively procured contracts that conform to the Federal Acquisition Regulation (FAR). Under the new Medicare Administrative Contractor (MAC) contracting authority, CMS has 6 years-between 2005 and 2011-to complete the transition of Medicare Fee-for-Service (FFS) claims processing activities from the FIs and carriers to the MACs. The provisions contained under section 911 are collectively referred to as Medicare Contracting Reform.

The full FFS program functional environment vision includes functional contractors working with the MACs.  A view of that functional environment can be found below.  

This page links to the Report to Congress on Medicare Contracting Reform which details CMS’ plans for implementing the section 911 provisions contained under the MMA.

Subsequent to the release of the Report to Congress, CMS has held meetings with representatives of provider and beneficiary groups to discuss topics related to Medicare Contracting Reform.  Two of these meetings were held on June 15, 2005 in Washington D.C.  In one meeting, we met with representatives from nine provider organizations.  In the other, we met with representatives from two beneficiary organizations.  Summaries of those discussions are available below.  

Downloads

Legislative Timeline (PDF, 40KB)
Contractor Suggestions (PDF, 40KB)
Report to Congress (PDF, 786KB)
Report to Congress Fact Sheet (PDF, 19KB)
Medicare FFS Functional Environment (PDF, 24KB)
Provider Consultations (PDF, 24KB)
Beneficiary Consultations (PDF, 21KB)
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Page Last Modified: 03/16/2006 10:35:00 AM
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