U.S. Department of Health & Human Services |
|
Improving the health, safety, and well-being of America |
Font Size Print Download Reader
This is an archive page. The links are no longer being updated.
FOR IMMEDIATE RELEASE Thursday, June 28, 2001 |
Contact: | CMS Press Office (202) 690-6145 |
"Reforming the processes that are used to select Medicare contractors will help us to serve our beneficiaries more efficiently," Secretary Thompson said. Changing the law will allow us to better meet the needs of beneficiaries, physicians and healthcare providers, now and in the future."
Since Medicare was created in 1965, the Centers for Medicare & Medicaid Services (formerly the Health Care Financing Administration) has used private health insurance companies to process Medicare claims and perform related administrative services for beneficiaries and health care providers. Today, CMS uses 49 contractors, located all across the country, to process nearly a billion Medicare claims every year, from more than 1 million doctors and other health care providers.
"The current arrangement is one of the worst remnants of Medicare's original design," CMS Administrator Tom Scully said. "To move Medicare into the 21st century successfully, we must take aggressive action to reform the current contracting system."
The legislative proposal, unveiled at a hearing of the House Energy and Commerce Committee's subcommittees on Health and Oversight and Investigations, would allow the HHS Secretary more flexibility in contracting with the private companies that process Medicare claims under the Federal Acquisition Rules. The legislation would also increase CMS' ability to reward well-performing contractors.
Through this legislation, CMS hopes to accomplish the following:
"We must improve efficiency and the level of service to our beneficiaries and providers," Secretary Thompson said. "We would like to work cooperatively with our existing contractors to get to this goal - but the changes will require legislative action."