[Federal Register Volume 64, Number 149 (Wednesday, August 4, 1999)]
[Notices]
[Pages 42403-42406]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-19940]


-----------------------------------------------------------------------

DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration
[HCFA-0002-N]


Medicare Program; Year 2000 Readiness Letters

AGENCY: Health Care Financing Administration (HCFA), HHS.

ACTION: Notice.

-----------------------------------------------------------------------

    On May 24, 1999 the Health Care Financing Administration (HCFA) 
sent the following letters regarding Y2K readiness to physicians, 
hospitals, managed care organizations and other health care partners 
that provide services to Medicare beneficiaries. The letters are a 
follow-up to a January 1999 letter published in the Federal Register 
(64 FR 5667) that had been sent to the over one million providers of 
Medicare services.
    The recent letters include several very important messages 
regarding Y2K and health care providers. First, HCFA's internal systems 
and the 75 mission-critical claims processing systems operated by the 
Medicare carriers and fiscal intermediaries are fully ready to handle 
all appropriately formatted claims and other data exchanges on January 
1, 2000. Second, providers need to be aware that the Y2K computer 
problem goes beyond the matter of billing and can have a serious impact 
on the quality of patient care. Finally, the letters provide a list of 
steps and a number of web site resources that

[[Page 42404]]

providers can use to help them get ready for the Year 2000, including 
the preparation of contingency plans.
    These letters from the Administrator are part of an extensive 
outreach effort that the agency has undertaken to keep health care 
providers informed about the status of HCFA's Y2K readiness and to 
encourage providers to take all steps necessary to become Y2K ready. We 
have received many questions from concerned providers and others during 
the last year about the status of agency's Y2K readiness. Our claims 
processing systems have been fully renovated, implemented and tested 
and are paying claims today. We will continue to retest systems through 
the end of the year. However, it should be recognized that HCFA 
readiness is not enough. In addition, providers must be ready and able 
to submit claims that can be processed in a Y2K environment. Medicare's 
fiscal intermediaries and carriers make Y2K compliant billing software 
available to all providers and claims submitters for free or at a 
minimal cost.
    The best method for providers to be assured that they are Y2K ready 
and that we are able to process their claims is to test their systems 
with their Medicare contractor using test claims with future dates. 
Medicare contractors are prepared to conduct ``front end'' testing with 
providers and in some instances ``end to end'' testing may also be 
available. We recommend that providers test with as many of their 
payers as possible.
    Many providers that use billing vendors to submit claims to HCFA 
and other payers appear to be under the incorrect impression that the 
Y2K transition does not affect them. Providers need to assure that they 
are able to interface with their bill submitters and that submitters 
are ready to submit bills and exchange data with Medicare contractors 
and other payers in a Y2K ready environment. In addition, providers 
should be aware that any system or equipment with an embedded chip can 
be affected by Y2K including patient management systems, medical 
devices, payroll systems, security and fire systems, telephones and 
other systems that are integral to providing quality patient care and 
supporting provider business operations.
    We have developed very specific contingency plans to assure that we 
will be able to process claims and make payments to providers in the 
event of an unforseen failure of Medicare hardware, software or 
networks due to the Y2K transition. These contingency plans do not 
include estimated payments to providers who cannot submit a bill that 
can be processed. Being able to submit a valid bill is the minimal 
requirement that HCFA believes is necessary to assure that the provider 
is able to operate in a Year 2000 environment and is actually 
furnishing covered services. HCFA's accountability to taxpayers 
requires that payment be made only when a provider can document that a 
covered service has been delivered through submission of a proper 
claim. HCFA has always been able to receive paper claims, but this is 
not a preferred option. Processing paper claims requires additional 
human resources. Any significant increase in submission of paper claims 
could slow down the payment process. Payments will be processed more 
quickly and accurately if claims can be submitted electronically.
    Health care providers must have business continuity and contingency 
plans in place in case of unanticipated problems. Contingency plans 
help ensure that providers can submit accurate and timely claims to 
Medicare, and continue to furnish safe and quality care to their 
patients. HCFA makes a variety of contingency planning resources 
available to providers, including the HCFA Year 2000 Business 
Continuity Plan Handbook published on HCFA's web site.
    In addition to these letters to providers and the resource 
information on its web site, www.hcfa.gov, HCFA has established a Y2K 
Speakers Bureau and is prepared to make speakers available to health 
care provider meetings and conferences on request. In addition HCFA is 
holding a series of Y2K provider readiness conferences and public 
learning sessions in locations across the country. (See web site for 
locations). Also, a toll-free number is available specifically for 
providers with questions and concerns about Y2K. That number is 1-800-
958-HCFA and is available Monday through Friday, 8:00 a.m. to 8:00 p.m. 
Eastern time.

FOR FURTHER INFORMATION CONTACT: Joe Broseker 410-786-1950 or Anita 
Shalit 202-690-7179.

(Catalog of Federal Domestic Assistance Program No. 93.778, Medical 
Assistance Program)
(Catalog of Federal Domestic Assistance Program No. 93.773, 
Medicare--Hospital Insurance; and Program No. 93.774, Medicare--
Supplementary Medical Insurance Program)

    Dated: July 28, 1999.
Michael M. Hash,
Deputy Administrator, Health Care Financing Administration.
Dear Doctor:

    In January, the Health Care Financing Administration (HCFA) 
wrote to you about the progress it had made in correcting problems 
in Medicare computer systems caused by the Year 2000 or ``Y2K'' 
problem. Many of you responded with letters and further questions. 
The two most frequently asked questions were: ``When will HCFA be 
fully ready to process our claims?'' and ``What do we as physicians 
need to be doing to be ready for the Year 2000?'
    We are pleased to tell you that HCFA and its Medicare 
contractors are fully ready to handle all appropriately formatted 
claims and other data exchanges on January 1, 2000. All of HCFA's 
internal systems have been renovated, tested, certified; and 
necessary changes were implemented by the government-wide Year 2000 
deadline of March 31, 1999. Among other things, these internal 
systems operate HCFA's accounts receivable and payable operations; 
manage the eligibility, enrollment, and premium status of our 39 
million Medicare beneficiaries; and make payments to more than 400 
managed care plans on behalf of over 6 million beneficiaries. All 75 
mission-critical claims processing systems operated by our Medicare 
contractors are also certified as compliant, including end-to-end 
and future-date testing. We continue to test and retest our 
renovated systems. We want to be sure that you get paid for the 
valuable work you do.
    The Y2K computer problem is far more than a billing problem. We 
are pleased so many of you are asking the second question about what 
you need to do. This is a patient care and quality of care issue as 
well as a technical one. Our expectation is that you will continue 
to provide the quality of care your patients depend upon. As 
physicians, you will need to prepare your internal office systems to 
communicate with HCFA systems and prepare other aspects of your 
practice to continue to function reliably after January 2000. We 
urge you to take the following steps toward Y2K readiness: (Please 
see the enclosed attachments for more details.)
     Understand the issue so that you can assure your 
patients of continued quality care.
     Access the numerous public and private websites 
offering Y2K guidance.
     Inventory your practice for other Y2K problems with the 
attached checklist.
     Contact your Medicare carrier now for testing of your 
billing submissions.
     Contact your other major third party payers and your 
State Medicaid Agency.
     Develop business contingency plans in the event 
something might go wrong.
    More detail on each of these steps is attached. This is not an 
exhaustive list but is meant to guide you in your Y2K readiness 
efforts. I have also attached a Sample Provider Y2K Readiness 
Checklist for your information. Many of you have taken steps to 
prepare for Y2K and have helped us get ready for January 1, 2000, 
and we thank you. Please continue to let us know, through our 
Medicare contractors, our toll-free Y2K provider line (1-800-958-
HCFA [4232]), and our website (www.hcfa.gov/y2k), what further HCFA 
activities would help you to get ready.


[[Page 42405]]


    Sincerely,

Michael M. Hash,
Deputy Administrator.

Robert A. Berenson,
Director, Center for Health Plans and Providers.

Enclosures

Dear Health Care Partner:

    I wrote to you in January about the substantial progress that 
the Health Care Financing Administration ((HCFA) had made in 
eliminating the Y2K bug from Medicare computer systems and about 
your part in assuring the continued quality of the health care 
system. Many of you responded with letters and further questions. 
The two most frequently asked questions were: ``When will HCFA be 
fully ready to process our claims?'' and ``What do we as providers 
need to be doing to be ready for the Year 2000?'
    We are pleased to inform you that HCFA and its Medicare 
contractors are fully ready to handle all appropriately formatted 
claims and information exchanges on January 1, 2000. All of HCFA's 
mission critical internal systems were renovated, tested, certified, 
and implemented by the government-wide Year 2000 deadline of March 
31, 1999. Among other things, these internal systems manage the 
eligibility, enrollment, and premium status of our 39 million 
Medicare beneficiaries; make payments to more than 400 managed care 
plans on behalf of over 6 million beneficiaries; and operate HCFA's 
accounts receivable and payable operations. All 75 mission-critical 
claims processing systems operated by our Medicare contractors are 
also certified as compliant, including end-to-end and future-date 
testing. We continue to test and retest our renovated systems. We 
want to be sure that you get paid for the valuable work you do.
    The available surveys indicate that health care providers, 
particularly physicians, clinics, and skilled nursing facilities, 
have not resolved the problems that may occur on January 1, 2000. 
This so-called ``Y2K Bug'' is far more than a billing problem. We 
are pleased so many of you are asking the second question about what 
you need to do. This is a patient care and quality of care issue as 
well as a technical one. Our expectation is that you will continue 
to provide the quality of care your patients depend upon. We urge 
you to take the following steps toward Y2K readiness:
     Understand the issue so that you can assure your 
patients of continued quality care.
     Access the numerous public and private websites 
offering Y2K guidance.
     Inventory your business for other Y2K problems with the 
attached checklist.
     Contact your Medicare contractor now for testing of 
your billing submissions.
     Contact your other major third party payers and your 
State Medicaid Agency.
     Develop business contingency plans in the event 
something might go wrong.
    More detailed information on each of these steps is attached as 
well as a Sample Provider Y2K Readiness Checklist. This is not an 
exhaustive list but is meant to guide you in your Y2K readiness 
efforts. Also, we want to thank the many of you who have already 
taken steps to prepare for the millennium and have helped us get 
ready for January 1, 2000. Please continue to let us know, through 
your Medicare contractors, our toll-free Y2K provider line (1-800-
958-HCFA [4232]), and our website (www.hcfa.gov/y2k) what further 
HCFA activities would help you to get ready.

    Sincerely,

Michael M. Hash,
Deputy Administrator.

Enclosures

Attachment A--Suggested Steps Toward Y2K Readiness

Understand the issue so that you can assure your patients of 
continued quality care.

    Become informed about your office's readiness for the Year 2000. 
If any patients develop concerns in the upcoming months about how 
Y2K may affect the continuity of their health care, they will be 
greatly reassured by informed responses from you and your staff.

Access the numerous public and private websites offering Y2K 
guidance.

     The Food & Drug Administration (FDA) website, 
www.fda.gov/cdrh/yr2000/year2000.html, offers an extensive listing 
of the status of medical equipment readiness, by manufacturer.
     The General Services Administration (GSA) website, 
www.itpolicy.gsa.gov/mks/yr2000/y2khome.htm, offers valuable 
information to assess your building and infrastructure.
     The Small Business Administration (SBA) website, 
www.sba.gov/financing/fry2k.html, offers information on how to 
obtain SBA-guaranteed bank loans that may help small, for profit 
providers pay for a variety of Y2K-generated needs, including: Y2K 
adjustments, repair, and acquisition of hardware, software, and 
consultants.
     Professional organizations such as your state, national 
and specialty medical societies and associations, and your 
professional liability carrier offer additional specialized Y2K 
information.
     Attend programs that will be provided throughout this 
year from HCFA, continuing medical education providers and 
professional organizations. HCFA sponsored programs are listed on 
our website, www.hcfa.gov/y2k.

Inventory your practice for other Y2K problems.

    Anything that depends on a microchip or date entry could be 
affected, whether it belongs to you or to an organization you depend 
upon. The attached checklist, which can also be found on the HCFA 
website (www.hcfa.gov/y2k), will help you in this inventory. Don't 
forget to:
     Identify your mission critical items, that is, those 
items without which you cannot run your practice, and focus on those 
first.
     Contact the vendors and service contractors for your 
computer hardware and software, service companies such as your 
security company or paging system, and your medical equipment 
suppliers (EKG machines, for example, may actually give inaccurate 
diagnostic results) to obtain information regarding the Y2K status 
or impact on their products.
     Update or replace systems, software programs, and 
devices that are not Y2K ready and that you decide are critical for 
your business continuity. There is no time to lose on this activity 
as the replacement systems you need may be back-ordered.
    Keep notes on all your communications and testing information 
for possible use later and do not assume that a system or a program 
is Y2K ready just because someone said it is. For critical items, 
get assurance in writing and/or attempt to have them tested.
     The original manufacturer of a product knows the 
product best and is in the best position to assess the Y2K status of 
it and provide advice. Industry experts recommend that you not test 
biomedical devices until you have checked with the supplier or 
manufacturer to determine the advisability of such testing. 
Particular attention should be given to interconnected devices or 
systems whose components share or communicate data and that are not 
from a single manufacturer or source.

Contact your Medicare contractor now for testing of your billing 
submissions.

     Medicare carrier and fiscal intermediary Y2K 
information numbers can be found on HCFA's website, www.hcfa.gov/
y2k, or can be obtained from our toll free provider information line 
at 1-800-958-HCFA [4232].
     HCFA is now requiring all Medicare contractors to 
establish a test environment that will allow Medicare claim formats 
from providers/submitters to be validated. In some instances, you 
may be able to arrange with your contractor to have ``end to end'' 
testing done, whereby your billing submissions are tested into their 
system and back again to your system. This latter form of test is 
only available on a limited basis, provided time and resources are 
available at the contractor.
     HCFA has dedicated software that will give you a way to 
submit electronic claims in a compliant format in the event your 
system is not fully compliant. This software is available from your 
Medicare contractor.

Contact other major third party payers.

     The above considerations are equally applicable for 
transactions with your other payers. Contact them directly to 
arrange Y2K testing.

Develop business contingency plans in the event something goes 
wrong. Focus on the things that would be most problematic for you 
and your patients.

     While storing claims information on paper may be a part 
of your contingency, actually submitting them for payment is ill 
advised, as an enormous increase in paper claims cannot be 
accommodated by payor systems, and this could significantly delay 
your payments. We recommend that your billing office work with your 
carrier to create the appropriate electronic contingency, as noted 
above.
    The Health Care Financing Administration does not assume any 
responsibility for your Y2K compliance.

[[Page 42406]]

Attachment B--Sample Provider Y2K Readiness Checklist

    This checklist is intended as a supplemental guide to help you 
determine your Y2K readiness. Consider using this, along with other 
diagnostic and reference tools you have obtained for this venture. 
The purpose of this checklist is to aid you in determining your Y2K 
readiness. This information is not intended to be all inclusive. The 
Health Care Financing Administration does not assume any 
responsibility for your Y2K compliance.

------------------------------------------------------------------------
            Item                    Y2K Ready           Not Y2K Ready
------------------------------------------------------------------------
Appointment scheduling
 system.
Answering machines..........
Bank debit/credit card
 expiration dates.
Banking interface...........
Billing system..............
Building access cards.......
Clocks......................
Computer hardware (list)....
Computer software (list)....
Custom applications (list)..
Diagnostic equipment (list).
Elevators...................
Fire/smoke alarm............
Indoor lighting.............
Insurance/pharmacy coverage
 dates.
Medical devices (list)......
Membership cards............
Monitoring equipment (list).
Office forms (claims, order,
 referral).
Outdoor lighting............
Paging system...............
Payroll system..............
Physician referral forms....
Security system.............
Telephone system............
Television/VCR..............
Sprinkler system............
Treatment equipment (list)..
Safety vaults...............
------------------------------------------------------------------------

[FR Doc. 99-19940 Filed 8-3-99; 8:45 am]
BILLING CODE 4120-01-P