[Federal Register Volume 63, Number 45 (Monday, March 9, 1998)]
[Notices]
[Pages 11448-11449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-5874]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration


Statement of Organization, Functions, and Delegations of 
Authority; Office of the Actuary

    Part F of the Statement of Organization, Functions, and Delegations 
of Authority for the Department of Health and Human Services, Health 
Care Financing Administration (HCFA), (Federal Register, Vol. 62, No. 
85, pp. 24121-24122, dated Friday, May 2, 1997, and Federal Register, 
Vol. 62, No. 129, pg. 36294, dated Monday, July 7, 1997) is amended as 
a result of the Balanced Budget Act of 1997 to reflect a change to the 
Actuarial and Health Cost Analysis Group in the Office of Strategic 
Planning (OSP). Specifically, the Actuarial and Health Cost Analysis 
Group (FAKC) and its subordinate divisions are abolished and replaced 
by the Office of the Actuary (OACT) which will now report directly to 
the Administrator. The functional responsibilities of the remaining 
components in OSP are not affected. OACT's administrative code is 
changed from FAKC to FAN.
    The specific amendments to Part F are described below:
     Section F.10. (Organization) is amended to read as 
follows:

4. Office of Strategic Planning (FAK)
a. Research and Evaluation Group (FAKA)
b. Planning and Policy Analysis Group (FAKB)
c. Systems, Technical and Analytic Resources Group (FAKD)
d. Information and Methods Group (FAKE)
18. Office of the Actuary (FAN)
a. Medicare and Medicaid Cost Estimates Group (FAN1)
b. National Health Statistics Group (FAN2)

     Section F.20. (Functions) is amended to read as follows:

4. Office of Strategic Planning (FAK)
     Develops and manages the long-term strategic planning 
process for the Agency; responsible for the Agency's conformance with 
the requirements of the Government Performance and Results Act (GPRA).
     Provides analytic support and information to the 
Administrator and the Executive Council needed to establish Agency 
goals and directions.
     Performs environmental scanning, identifying, evaluating, 
and reporting emerging trends in health care delivery and financing and 
their interactions with Agency programs.
     Manages strategic, crosscutting initiatives.
     Designs and conducts research and evaluations of health 
care programs, studying their impacts on beneficiaries, providers, 
plans, States and other partners and customers, designing and assessing 
potential improvements, and developing new measurement tools.
     Coordinates all Agency demonstration activities, including 
development of the research and demonstration annual plan, evaluation 
of all Agency demonstrations, and assistance to other components in the 
design of demonstrations and studies.
     Manages assigned demonstrations, including Federal review, 
approval, and oversight; coordinates and participates with departmental 
components in experimental health care delivery projects.
     Develops research, demonstration, and other publications 
and papers related to health care issues.
18. Office of the Actuary (FAN)
     Conducts and directs the actuarial program for HCFA and 
directs the development of and methodologies for macroeconomic analysis 
of health care financing issues.
     Performs actuarial, economic and demographic studies to 
estimate HCFA program expenditures under current law and under proposed 
modifications to current law.
     Provides program estimates for use in the President's 
budget and for reports required by Congress.
     Studies questions concerned with financing present and 
future health programs, evaluates operations of the Federal Hospital 
Insurance Trust Fund and Supplementary Medical Insurance Trust Fund and 
performs microanalyses for the purpose of assessing the impact of 
various health care financing factors upon the costs of Federal 
programs.
     Estimates the financial effects of proposals to create 
national health insurance systems or other national or incremental 
health insurance reform.
     Develops and conducts studies to estimate and project 
national and area health expenditures.
     Develops, maintains, and updates provider market basket 
input price indexes and the Medicare Economic Index.
     Analyzes data on physicians' costs and charges to develop 
payment indices and monitors expansion of service and inflation of 
costs in the health care sector.
     Performs actuarial reviews and audits of employee benefit 
expenses charged to Medicare by fiscal intermediaries and carriers.
     Publishes cost projections and economic analyses, and 
provides actuarial, technical advice and consultation to HCFA 
components, governmental components, Congress, and outside 
organizations.
a. Medicare and Medicaid Cost Estimates Group (FAN1)
     Evaluates the financial status of the Hospital Insurance 
(HI) and Supplementary Medical Insurance (SMI) Trust Funds and prepares 
the annual report to Congress for the Medicare Board of Trustees.
     Prepares cost estimates for the HI program, the SMI 
program, and the Medicaid program for use in the President's budget.
     Estimates the financial effects of proposed Medicare and 
Medicaid legislation.
     Determines key Medicare program amounts, including the 
Part B premium rates, the inpatient hospital deductible, the Part A 
premium rate for voluntary enrolles, and the physicians' economic index 
applicable to prevailing fees.
     Develops the payment rates for the annual update of the 
Medicare+Choice capitation rate book, which is used to pay managed care 
organizations that enter into a risk contract with HCFA to provide 
benefits to Medicare enrolles.
     Serves as technical consultant throughout the Government 
on Medicare and Medicaid cost estimate issues.
     Provides actuarial consultation to other organizations in 
the research of managed care payment methodology.
b. National Health Statistics Group (FAN2)
     Develops, maintains and makes analytical use of the 
National Health Accounts (NHA) which include annual estimates and 
publication of National Health Expenditures (NHE) and periodic 
estimates and publication of NHE by age groupings or by region and 
state.

[[Page 11449]]

     Tracks and publishes quarterly health care indicators to 
identify emerging health sector trends, including data on health care 
utilization and costs; health sector employment, wages, and prices; and 
economy-wide economic conditions.
     Prepares estimates of NHE for future years by type of 
service and source of financing.
     Develops, analyzes and publishes results from health 
sector models which allow evaluation of the impact of proposed changes 
to the current health system on the overall economy.
     Develops, maintains, and updates provider market basket 
input price indexes, including the Hospital Input Price Index, the 
Medicare Economic Index, and the other price indexes mandated for use 
in setting Medicare payments to providers.
     Provides technical support for HCFA regulatory processes, 
especially those related to payment systems or reform.

    Dated: February 8, 1998.
Nancy-Ann Min DeParle,
Administrator, Health Care Financing Administration.
[FR Doc. 98-5874 Filed 3-6-98; 8:45 am]
BILLING CODE 4120-01-P