Medicare: Comments on HHS' Claims Administration Contracting Reform Proposal

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Correspondence issued by the General Accounting Office with an abstract that begins "The Department of Health and Human Services (HHS) submitted a legislative proposal that would modify Medicare's contracting authority. This report examines (1) the current law and practice in Medicare claims administration contracting, (2) provisions in the proposal that would increase HHS Centers for Medicare and Medicaid Services' (CMS) contracting flexibility, and (3) the provisions that deviate from standard federal contracting requirements for full and open competition and indemnification of contractors. Because of statutes and long-standing practices, Medicare claims administration contracting does not follow standard federal contracting rules in ... continued below

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United States. General Accounting Office. August 17, 2001.

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Description

Correspondence issued by the General Accounting Office with an abstract that begins "The Department of Health and Human Services (HHS) submitted a legislative proposal that would modify Medicare's contracting authority. This report examines (1) the current law and practice in Medicare claims administration contracting, (2) provisions in the proposal that would increase HHS Centers for Medicare and Medicaid Services' (CMS) contracting flexibility, and (3) the provisions that deviate from standard federal contracting requirements for full and open competition and indemnification of contractors. Because of statutes and long-standing practices, Medicare claims administration contracting does not follow standard federal contracting rules in several ways. For example, federal agencies can generally terminate a contract at any time, but CMS cannot terminate contracts with Medicare claims administration contractors at the federal government's convenience. The proposed legislation would give CMS the same authority as other federal agencies to retain or terminate contractors. These provisions would increase the agency's flexibility to promote the contractor's performance and accountability. GAO is concerned, however, that the provisions would also allow CMS to bypass federal contracting rules for full and open competition. In addition, the proposal includes a provision that would require CMS to indemnify claims administration contractors from certain liabilities in a way that creates a potential open-ended liability for the government while reducing contractor accountability."

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Government Accountability Office Reports

The U.S. Government Accountability Office (GAO) is an independent, nonpartisan agency that works for the U.S. Congress investigating how the federal government spends taxpayers' money. Its goal is to increase accountability and improve the performance of the federal government. The Government Accountability Office Reports Collection consists of over 13,000 documents on a variety of topics ranging from fiscal issues to international affairs.

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  • August 17, 2001

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  • June 12, 2014, 7:50 p.m.

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United States. General Accounting Office. Medicare: Comments on HHS' Claims Administration Contracting Reform Proposal, text, August 17, 2001; Washington D.C.. (digital.library.unt.edu/ark:/67531/metadc299416/: accessed October 19, 2017), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.