NOMINEE FOR ADMINISTRATOR FOR THE CENTERS FOR MEDICARE & MEDICAID SERVICES, KERRY N. WEEMS
BEFORE THE SENATE COMMITTEE ON FINANCE

Chairman Baucus, Senator Grassley, thank you for holding this hearing today, and for the Committee�s consideration of my nomination to be Administrator of the Centers for Medicare & Medicaid Services. I am Kerry Weems, a twenty-four year employee of the Department of Health and Human Services. Almost three weeks ago, my wife Jean and I celebrated our twenty-third wedding anniversary. Over those twenty-three years, she has stood by me and my Federal service � even after the thousandth repetition of that phrase heard too often in Washington: �I�ll be leaving in another 15 minutes.� Her sacrifices have been tremendous, and my service to this country would not have been possible without her steadfast commitment to that service. I would also like to introduce the rest of my family to the Committee. Peter is a senior at James Madison University and will receive his degree in Philosophy next May. Claire is a sophomore and a student-athlete at George Mason University, majoring in Spanish. Anna will commence her senior year in high school this August. When I began my civil service career as a junior budget analyst for the Social Security Administration in 1983, I did not dream that I would one day sit before this Committee as a Presidential nominee to be CMS Administrator. Throughout more than two decades of public service at HHS, I have witnessed tremendous talent and dedication at the helm of CMS and throughout HHS. It is a high honor and privilege for the President to have nominated me to this position. I submit my credentials and experience to this Committee with gratitude and humility. Those who have worked with me, including some Members and staff of this Committee, know that I have served both Republican and Democratic Administrations. I have always tried to approach my responsibilities with leadership, vision, balance and a commitment to make bureaucracy work for the people, not for special interests or partisan politics. I was first hired into the Civil Service under President Reagan in 1983, and I became a manager during President George H.W. Bush�s Administration. Former HHS Secretary Donna Shalala signed my appointment to the Senior Executive Service, and President Clinton awarded me the Presidential Rank Award. Former Secretary Thompson promoted me to Deputy Assistant Secretary for Budget, and from January 2003 to July 2005, I served as Acting Assistant Secretary for Budget, Technology and Finance and Chief Financial Officer for HHS. Most recently, I have served as Deputy Chief of Staff to HHS Secretary Mike Leavitt. I have served four Presidents and six HHS Secretaries. Much attention has been devoted to the baby-boom generation and its imminent retirement. However, before they can retire, the boomers still have a great task ahead of them�caring for the generation which preceded them. My vision for the future of CMS is bound tightly with my responsibilities and the responsibilities of my generation. My father is on the Medicare prescription drug program and fell into the coverage gap late last year. He and I worked together to get him in the coverage that is best for him, and we worked with his doctors to provide less costly medications. My vision for the prescription drug program is that every beneficiary and their caregivers have the information they need to choose the best plan and get the best care they need. My mother may soon be faced with the need for a particular surgery. My vision for our health system is that she has the right information to choose the care she would like to receive: care that is accessible, coordinated, and effective; care that occurs in the most effective and appropriate setting from initial examination to rehabilitation; and, finally, care that is paperless. My mother will rely on me and my siblings to help her choose her best path to good care. Good health and good care is a family matter and one the generations share. My wife and her sister are the care-takers of their mother who resides in a nursing home. Recently my mother-in-law was injured in the nursing home. To date, my wife has not received a satisfactory explanation of the incident, despite a request for a detailed incident report. My vision for Medicare, Medicaid, and children�s health insurance is one in which our beneficiaries are protected. Whether it is from unsafe nursing homes, unscrupulous insurance salespeople, fraudulent equipment providers or bad medicine, CMS must exercise its oversight responsibilities to protect the beneficiaries. If confirmed, I will intensify CMS oversight activities, and I expect this Committee to hold me responsible for acting on abuse or inefficiencies discovered in the course of program oversight. CMS needs to be a reliable and trusted partner to the beneficiaries we serve. I am aware that this Committee and others have been frustrated with the lack of resolution and lack of consistent information regarding premium withhold issues for Medicare Part D enrollees. Let me now commit to you Mr. Chairman and Senator Grassley that, if confirmed, you will have the same information that I do on problems like these, and I will make it a top priority to fix these problems. I fully appreciate that Medicare, Medicaid, and SCHIP account for not just a significant percentage of the Federal budget, but also a considerable portion of the gross domestic product. The regulatory power of CMS is enormous. Small changes in payment rates, conditions of participation, or allowable expenses can have large consequences to individual providers. As CMS flexes its regulatory muscle, we need to be cognizant of these consequences. Indeed, many on this Committee have urged me to be sensitive to the consequences of CMS regulations on pharmacists, ambulatory surgical centers, durable medical equipment providers, and rural providers to name a few. Our beneficiaries depend on these providers every day � the corner pharmacy, the home health agency, the community health center. As we work to make our payment systems and these providers more efficient, CMS needs to ensure that these businesses have a good understanding of what CMS is trying to achieve and what it means for them and the beneficiaries they serve. All of things I have discussed are on the immediate horizon. CMS is working to improve quality and to find an evidence-based method of paying for quality. On July 1, CMS began the Physicians Quality Reporting Initiative to reward physicians for reporting on quality care. I hope to be able to send this Committee CMS plans for Value Based Purchasing in the hospital setting. Investments in coordinated care are beginning to pay dividends. Recently, CMS announced preliminary results from a coordinated care demonstration which shows promise in reducing costs and improving health among the chronically ill. Secretary Leavitt is making great progress with electronic health records, having accomplished a number of breakthroughs in standards and certifications. Value based purchasing, coordinated and better care, and a paperless health system are within our grasp. I have devoted my entire professional career to public service and rather than listing my accomplishments for you, let me tell you what I have learned. I have learned to seek out experts and listen to them, to seek all those with equities in the issue and listen to them, to follow the law; to weigh the evidence and the facts, and render a decision. My pledge to you today is that I will pursue the facts and the law to guide my decisions and leadership. Thank you, Mr. Chairman, for holding this hearing today. I would be pleased to answer any questions you or other members of the Committee may have.