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The Healthcare Integrated General Ledger Accounting System (HIGLAS) is a new dual-entry accounting system that replaces and modernizes 52 Medicare Contractor accounting systems with a single standardized system. In addition to processing Medicare claims, HIGLAS will replace the legacy Financial Accounting and Control System (FACS), which accumulates CMS' financial activities, both programmatic and administrative, in its general ledger. HIGLAS, a component of the Department of Health and Human Services (DHHS) Unified Financial Management System (UFMS), will: - Improve accountability for Medicare's payments to physicians, hospitals, and other providers servicing Medicare beneficiaries.
- Eliminate redundant accounting systems
- Allow more timely and effective collection activities on outstanding debts
- Pay nearly 3 Million healthcare claims a day
- Result in estimated annual cost savings of approximately $121 Million
- Meet government financial regulations including the Joint Financial Management Improvement Program (JFMIP) and the Federal Financial Management Improvement Act of 1996 (FFMIA)
Background: Most Medicare Contractors, which are mainly private insurance companies, do not all use double entry accounting methods for Medicare claims accounting. As a result, financial data has to be entered and verified manually, which increases the risk of administrative and operational errors and misstatements. Weaknesses such as these in Medicare claims accounting, which were documented in the General Accounting Office (GAO) and other independent audit findings, signaled the need for a new approach. A single integrated general ledger accounting system for use across CMS and its Medicare Contractors was needed; one that would eliminate inefficient, labor intensive manual processes and provide timely and accurate financial data. After analyzing and evaluating potential solutions, CMS determined that HIGLAS was an optimal system for meeting Medicare's financial management needs. HIGLAS Architecture: To view an explanation of the HIGLAS Medicare contractor architecture, click on the "HIGLAS Architecture" download link below. Medicare Contractors: For information on how HIGLAS will communicate with the Medicare contracts' shared systems, and the role of the shared systems, click on the "Medicare Contractors" download link below Medicaid/CHIP: Click on the "Medicaid/CHIP" download link below. News and Highlights: For information on HIGLAS statistics, roadmap, and timeline, click on the "News and Highlights" download link below. Governance: Information about the governing entities of HIGLAS can be obtained by clicking on the "Governance" download link below. Frequently Asked Questions (FAQs): Click on the FAQs download link below.
Page Last Modified: 04/09/2009 8:36:10 AM
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