[Federal Register Volume 66, Number 204 (Monday, October 22, 2001)]
[Notices]
[Pages 53427-53428]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-26490]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


Privacy Act of 1974; Computer Matching Program (Match No. 2001-
03)

AGENCY: Department of Health and Human Services (HHS), Centers for 
Medicare & Medicaid Services (CMS).

ACTION: Notice of Computer Matching Program (CMP).

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, this notice proposes to establish a CMP that CMS 
plans to conduct with the Social Security Administration (SSA), and the 
Internal Revenue Service (IRS). We have provided background information 
about the proposed matching program in the Supplementary Information 
section below. Although the Privacy Act requires only that CMS provide 
an opportunity for interested persons to comment on the proposed 
matching program, CMS invites comments on all portions of this notice. 
See Effective Dates section below for comment period.

EFFECTIVE DATES: CMS filed a report of the Computer Matching Program 
with the Chair of the House Committee on Government Reform and 
Oversight, the Chair of the Senate Committee on Governmental Affairs, 
and the Administrator, Office of Information and Regulatory Affairs, 
Office of Management and Budget (OMB) on October 16, 2001. We will not 
disclose any information under a matching agreement until 40 days after 
filing a report to OMB and Congress or 30 days after publication. We 
may defer implementation of this matching program if we receive 
comments that persuade us to defer implementation.

ADDRESS: The public should address comments to: Director, Division of 
Data Liaison and Distribution (DDLD), CMS, Room N2-04-27, 7500 Security 
Boulevard, Baltimore, Maryland 21244-1850. Comments received will be 
available for review at this location, by appointment, during regular 
business hours, Monday through Friday from 9 a.m.-3 p.m., eastern 
daylight time.

FOR FURTHER INFORMATION CONTACT: John A. Albert, Health Insurance 
Specialist, Division of Benefits Coordination, Benefits Operations 
Group, Center for Medicare Management, CMS, 7500 Security Boulevard, 
Baltimore, Maryland 21244-1850. The telephone number is (410) 786-7457.

SUPPLEMENTARY INFORMATION:

I. Description of the Matching Program

A. General

    The Computer Matching and Privacy Protection Act of 1988 (Public 
Law (Pub. L.) 100-503), amended the Privacy Act (Title 5 United States 
Code (U.S.C.) 552a) by describing the manner in which computer matching 
involving Federal agencies could be performed and adding certain 
protections for individuals applying for and receiving Federal 
benefits. Section 7201 of the Omnibus Budget Reconciliation Act of 1990 
(Pub. L. 100-508) further amended the Privacy Act regarding protections 
for such individuals. The Privacy Act, as amended, regulates the use of 
computer matching by Federal agencies when records in a system of 
records are matched with other Federal, state, or local government 
records. It requires Federal agencies involved in computer matching 
programs to:
    1. Negotiate written agreements with the other agencies 
participating in matching programs;
    2. Obtain the Data Integrity Boards approval of the match 
agreement;
    3. Furnish detailed reports about matching programs to Congress and 
OMB;
    4. Notify applicants and beneficiaries that the records are subject 
to matching; and,
    5. Verify match findings before reducing, suspending, terminating, 
or denying an individual's benefits or payments.

B. CMS Computer Matches Subject to the Privacy Act

    CMS has taken action to ensure that all of the computer matches 
programs that this Agency participates in comply with the requirements 
of the Privacy Act of 1974, as amended.

    Dated: October 11, 2001.
Thomas A. Scully,
Administrator, Centers for Medicare & Medicaid Services.

Computer Match No. 2001-03

Name:

    Medicare Secondary Payer Program.

Security Classification

    Level Three Privacy Act Sensitive.

Participating Agencies:

    Centers for Medicare & Medicaid Services; Internal Revenue Service; 
and Social Security Administration.

Authority for Conducting Matching Program:

    This Matching Program is executed pursuant to the Privacy Act of 
1974 (Title 5 United States Code (U.S.C.) 552a), as amended, and OMB 
Appendix I, A-130, titled: Management of Federal Information Resources. 
In addition, this program implements the information matching 
provisions of section 6103 (1)(12) of the Internal Revenue Code 
(IRC)(26 U.S.C. 6103(1)(12)) and section 1862 (b)(5) of the Social 
Security Act (the Act) (42 U.S.C. 1395y (b) (5)).
    Section 6103 (1) (12) of the IRC provides for disclosure by IRS of 
return information relating to taxpayer identity, filing status of the 
individual for any specified tax year after 1986; and if married, the 
identity of the spouse of the individual. Section 1862 (b)(5) of the 
Act provides for disclosure of the name and social security number 
(SSN) of each Medicare beneficiary and Medicare-eligible spouse who are 
identified as having received wages above the minimum level. It also 
provides for disclosure of the name, address, and identification number 
of each employer identified as providing wages above the minimum level. 
The minimum wage level used in this match shall be established by the 
Secretary of HHS prior to the match and pertains to amounts received 
from a qualified employer in a previous year.

Purpose(s) of the Matching Program:

    The primary purpose for this matching program is to establish the 
conditions, safeguards, and procedures for the disclosure of 
information used to identify coverage in the Medicare Secondary Payer 
Program. CMS does not have accurate information on all Medicare 
beneficiaries and Medicare-eligible spouses who have medical insurance 
coverage that may be primary to Medicare. SSA, through information 
collected from employers of working-aged beneficiaries and Medicare-
eligible spouses, is able to identify Medicare-eligible individuals who 
have primary coverage through a group health plan.

Categories of Records and Individuals Covered by the Match:

    Under the terms of this matching program, the SSA will transmit to 
the IRS, a list of names and tax identification numbers of Medicare 
beneficiaries. This information is maintained in SSA's Master 
Beneficiary Record (MBR) System. The IRS agrees to

[[Page 53428]]

match MBR data against taxpayer identity information collected from 
individual tax returns and maintained in the IRS Individual Master File 
(IMF). IRS established Project 241, IMF/Medicare Beneficiary Match, to 
facilitate this matching program.
    SSA will validate the taxpayer identity disclosed from the IMF by 
matching that information against the Master Files of SSN Holders 
(NUMIDENT). The NUMIDENT file contains records of SSNs issued to 
individuals by SSA. SSA will then extract employer identity information 
from the Earnings Recording and Self-employment Income System, referred 
to as the Master Earnings File. This file contains information on the 
starting date of employment for Medicare beneficiaries and Medicare-
eligible spouses.
    CMS and its agent will mail a data match questionnaire to the 
employers of Medicare beneficiaries or eligible spouses to verify 
periods of health insurance coverage and periods of employment. 
Instances of mistaken payments are referred to the appropriate Medicare 
contractor and become a part of its ongoing recovery process.

Inclusive Dates of the Match:

    The Matching Program shall become effective no sooner than 40 days 
after the report of the Matching Program is sent to OMB and Congress, 
or 30 days after publication in the Federal Register, which ever is 
later. The matching program will continue for 18 months from the 
effective date and may be extended for an additional 12 months 
thereafter, if certain conditions are met.

[FR Doc. 01-26490 Filed 10-19-01; 8:45 am]
BILLING CODE 4120-03-P