[Federal Register Volume 67, Number 115 (Friday, June 14, 2002)]
[Notices]
[Pages 40933-40937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-15004]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services


Privacy Act of 1974; Report of Modified or Altered System

AGENCY: Department of Health and Human Services (HHS) Centers for 
Medicare & Medicaid Services (CMS) (formerly the Health Care Financing 
Administration).

ACTION: Notice of modified or altered system of records (SOR).

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, we are proposing to modify or alter an SOR, ``Supplemental 
Medical Insurance (SMI) and Hospital Insurance (HI) Premium Accounting 
Collection and Enrollment (SPACE) System.'' We propose to delete 
published routine uses number 1, authorizing disclosure to state 
Medicaid agencies, number 4, authorizing disclosure to the United 
States Office of Personnel Management (OPM), number 6, authorizing 
disclosure to a contractor for the purpose of processing records in 
this system, and an unnumbered routine use authorizing disclosure to 
the Social Security Administration (SSA). Disclosures allowed by 
routine uses number 1, 4, and to the SSA will be covered by proposed 
routine use number 2 to permit release of information to ``another 
Federal and/or state agency, agency of a state government, an agency 
established by state law, or its fiscal agent.'' Disclosures previously 
allowed by routine use number 6 will now be covered by proposed routine 
use number 3.
    The security classification previously reported as ``None'' will be 
modified to reflect that the data in this system is considered to be 
``Level Three Privacy Act Sensitive.'' We are modifying the language in 
the remaining routine uses to provide clarity to CMS's intention to 
disclose individual-specific information contained in this system. The 
routine uses will then be prioritized and reordered according to their 
usage. We will also take the opportunity to update any sections of the 
system that were affected by the recent reorganization and to update 
language in the administrative sections to correspond with language 
used in other CMS SORs.
    The primary purpose of this SOR is to process beneficiary premium 
billing accretions and deletions to third party premium payer accounts 
(state Medicaid agencies, OPM, and formal third party groups (latter as 
defined in 42 Code of Federal Regulations (CFR) Secs. 408.80 through 
408.92)) for the payment of Part B (SMI) and/or Part A (HI) premiums on 
behalf of Medicare beneficiaries and for enrolling individuals for HI 
or SMI coverage under state buy-in agreements. Information in this 
system may be used: by formal third party groups pursuant to agreements 
with CMS, by another Federal or state agency, agency of a state 
government, an agency established by state law, or its fiscal agent, to 
support regulatory and policy functions performed within the agency or 
by a contractor or consultant, to an individual or organization for a 
research, evaluation, or epidemiological project, to support 
constituent requests made to a congressional representative, to support 
litigation involving the Agency related to this SOR, and to combat 
fraud and abuse in certain Federally funded health care programs. We 
have provided background information about the modified system 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 routine uses, CMS invites comments on all 
portions of this notice. See EFFECTIVE DATES section for comment 
period.

EFFECTIVE DATES: CMS filed a modified or altered system report 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 May 22, 2002. To ensure that all parties 
have adequate time in which to comment, the modified or altered SOR, 
including routine uses, will become effective 40 days from the 
publication of the notice, or from the date it was submitted to OMB and 
the congress, whichever is later, unless CMS receives comments that 
require alterations to this notice.

ADDRESSES: The public should address comments to: Director, Division of 
Data Liaison and Distribution, 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: Jackie Fromm, Director, Division of 
Premium Billing, Benefits Operations Group, Center for Medicare 
Management, CMS, 7500 Security Boulevard, S1-06-03, Baltimore, Maryland 
21244-1850. The telephone number is (410) 786-5885.

SUPPLEMENTARY INFORMATION:

I. Description of the Modified SOR

A. Statutory and Regulatory Basis for SOR

    In 1982, CMS established a SOR under the authority of sections 
1818, 1818A, (42 United States Code (USC) Secs. 1395i-2 and 2a), 
Secs. 1818(e) and (g) (42 USC 1395i-2(e) and (g)), 1840 (d) and (e) (42 
USC 1395s (d) and (e)), and 1843 (42 USC 1395v) of Title XVIII of the 
Social Security Act (the Act). Notice of the modification to this 
system, ``Supplemental Medical Insurance (SMI) Premium Accounting 
Collection and Enrollment (SPACE) System, System No. 09-70-0505'' was 
published in the Federal Register (FR) at 47 FR 45693 (Oct. 23, 1982) 
(original publication with 3 routine uses), 51 FR 33134 (Sept. 18, 
1986) (replaced litigation routine use), 60 FR 4176 (Jan. 20, 1995) 
(added 4 new routines uses), 61 FR 6645 (Feb. 21, 1996) (added 
unnumbered SSA use), 63 FR 38414 (July 16, 1998) (added three fraud and 
abuse uses), and 65 FR 50552 (Aug. 18, 2000) (deleted one and modified 
two fraud and abuse uses).

II. Collection and Maintenance of Data in the System

A. Scope of the Data Collected

    The system contains information on Medicare beneficiaries whose HI 
benefit and/or SMI Medicare premiums are paid by a state Medicaid 
agency, OPM, or a formal third party group. Information consists of the 
beneficiary's name, social security number (SSN), health insurance 
claims number (HICN), date of birth, sex, amount of premium liability, 
date agency first became liable for HI or SMI premiums, last month of 
agency premium liability, agency identification number, and an OPM 
annuity number.

B. Agency Policies, Procedures, and Restrictions on the Routine Use

    The Privacy Act permits us to disclose information without an 
individual's consent if the information is to be used for a purpose 
that is compatible with the purpose(s) for which the information was 
collected. Any such disclosure of data is known as a ``routine use.'' 
The government will only release SPACE

[[Page 40934]]

information that can be associated with an individual as provided for 
under ``Section III. Proposed Routine Use Disclosures of Data in the 
System.'' Both identifiable and non-identifiable data may be disclosed 
under a routine use.
    We will only collect the minimum personal data necessary to protect 
the integrity of the records maintained by SPACE. CMS has the following 
policies and procedures concerning disclosures of information that will 
be maintained in the system. Disclosure of information from the SOR 
will be approved only for the minimum information necessary to 
accomplish the purpose of the disclosure only after CMS:
    1. Determines that the use or disclosure is consistent with the 
reason that the data is being collected, e.g., process beneficiary 
premium accretions and deletions to third party payer accounts (state 
Medicaid agencies, OPM, and formal third party groups) for the payment 
of Part B (SMI) and/or Part A (HI) premiums on behalf of Medicare 
beneficiaries and for enrolling individuals for HI or SMI coverage 
under state buy-in agreements.
    2. Determines that:
    a. The purpose for which the disclosure is to be made can only be 
accomplished if the record is provided in individually identifiable 
form;
    b. The purpose for which the disclosure is to be made is of 
sufficient importance to warrant the effect and/or risk on the privacy 
of the individual that additional exposure of the record might bring; 
and
    c. There is a strong probability that the proposed use of the data 
would in fact accomplish the stated purpose(s).
    3. Requires the information recipient to:
    a. Establish administrative, technical, and physical safeguards to 
prevent unauthorized use or disclosure of the record;
    b. Remove or destroy at the earliest time all individually-
identifiable information; and
    c. Agree to not use or disclose the information for any purpose 
other than the stated purpose under which the information was 
disclosed.
    4. Determines that the data are valid and reliable.

III. Proposed Routine Use Disclosures of Data in the System

A. Entities Who May Receive Disclosures Under Routine Use

    These routine uses specify circumstances, in addition to those 
provided by statute in the Privacy Act of 1974, under which CMS may 
release information from the SPACE without the consent of the 
individual to whom such information pertains. Each proposed disclosure 
of information under these routine uses will be evaluated to ensure 
that the disclosure is legally permissible, including but not limited 
to ensuring that the purpose of the disclosure is compatible with the 
purpose for which the information was collected. We are proposing to 
establish or modify the following routine use disclosures of 
information maintained in the system:
    1. To formal third party groups pursuant to agreements with the CMS 
to pay the Medicare premiums on behalf of their members and who need to 
have access to the records in order to perform the activity.
    We contemplate disclosing information under this routine use only 
in situations in which CMS has entered into a contractual or similar 
agreement with a formal third party group to assist in a CMS function 
relating to the payment on behalf of their members.
    2. To another Federal or state agency, agency of a state 
government, an agency established by state law, or its fiscal agent 
pursuant to agreements with CMS to:
    a. Contribute to the accuracy of CMS's proper payment of Medicare 
benefits,
    b. Enable such agency to administer a Federal health benefits 
program, or as necessary to enable such agency to fulfill a requirement 
of a Federal statute or regulation that implements a health benefits 
program funded in whole or in part with Federal funds, and/or
    c. Assist Federal/state Medicaid programs within the state.
    Other Federal or state agencies in their administration of a 
Federal health program may require SPACE information in order to 
support monitoring of Medicare premium billing information.
    In addition, state Medicaid agencies may require SPACE data, 
pursuant to agreements with HHS, for enrollment of dually eligible 
beneficiaries for medical insurance under section 1843 of the Act.
    SSA requires SPACE data to enable them to assist in the 
implementation and maintenance of the Medicare program.
    RRB requires SPACE information to enable them to assist in the 
implementation and maintenance of the Medicare program.
    OPM requires SPACE information in order to perform monthly premium 
billing functions to identify annuitants for whom premium collections 
must be initiated, and to periodically reconcile third party master 
records.
    3. To Agency contractors or consultants who have been engaged by 
the Agency to assist in accomplishment of a CMS function relating to 
the purposes for this SOR and who need to have access to the records in 
order to assist CMS.
    We contemplate disclosing information under this routine use only 
in situations in which CMS may enter into a contractual or similar 
agreement with a third party to assist in accomplishing a CMS function 
relating to purposes for this SOR.
    CMS occasionally contracts out certain of its functions when doing 
so would contribute to effective and efficient operations. CMS must be 
able to give a contractor or consultant whatever information is 
necessary for the contractor or consultant to fulfill its duties. In 
these situations, safeguards are provided in the contract prohibiting 
the contractor or consultant from using or disclosing the information 
for any purpose other than that described in the contract, and requires 
the contractor or consultant to return or destroy all information at 
the completion of the contract.
    4. To an individual or organization for research, evaluation, or 
epidemiological projects related to the prevention of disease or 
disability, the restoration or maintenance of health, or payment 
related projects.
    SPACE data will provide for the research, evaluation, and 
epidemiological projects, a broader, longitudinal, national perspective 
of the status of Medicare beneficiaries. CMS anticipates that many 
researchers will have legitimate requests to use these data in projects 
that could ultimately improve the care provided to Medicare 
beneficiaries and the policy that governs the care.
    5. To a Member of Congress or a congressional staff member in 
response to an inquiry of the congressional office made at the written 
request of the constituent about whom the record is maintained.
    Beneficiaries and other individuals often request the help of a 
Member of Congress in resolving some issue relating to a matter before 
CMS. The Member of Congress then writes CMS, and CMS must be able to 
give sufficient information in response to the inquiry.
    6.To the Department of Justice (DOJ), court or adjudicatory body 
when:
    a. The Agency or any component thereof, or
    b. Any employee of the Agency in his or her official capacity, or
    c. Any employee of the Agency in his or her individual capacity 
where the DOJ has agreed to represent the employee, or

[[Page 40935]]

    d. The United States Government is a party to litigation or has an 
interest in such litigation, and by careful review, CMS determines that 
the records are both relevant and necessary to the litigation.
    Whenever CMS is involved in litigation, or occasionally when 
another party is involved in litigation and CMS's policies or 
operations could be affected by the outcome of the litigation, CMS 
would be able to disclose information to the DOJ, court or adjudicatory 
body involved.
    7. To a CMS contractor (including, but not limited to fiscal 
intermediaries and carriers) that assists in the administration of a 
CMS-administered health benefits program, or to a grantee of a CMS-
administered grant program, when disclosure is deemed reasonably 
necessary by CMS to prevent, deter, discover, detect, investigate, 
examine, prosecute, sue with respect to, defend against, correct, 
remedy, or otherwise combat fraud or abuse in such program.
    We contemplate disclosing information under this routine use only 
in situations in which CMS has entered into a contract or grant with a 
third party to assist in accomplishing CMS functions relating to the 
purpose of combating fraud and abuse.
    CMS occasionally contracts out certain of its functions when doing 
so would contribute to effective and efficient operations. CMS must be 
able to give a contractor or grantee whatever information is necessary 
for the contractor or grantee to fulfill its duties. In these 
situations, safeguards are provided in the contract prohibiting the 
contractor or grantee from using or disclosing the information for any 
purpose other than that described in the contract and requiring the 
contractor or grantee to return or destroy all information.
    8. To another Federal agency or to an instrumentality of any 
governmental jurisdiction within or under the control of the United 
States (including any state or local governmental agency), that 
administers, or that has the authority to investigate potential fraud 
or abuse in, a health benefits program funded in whole or in part by 
Federal funds, when disclosure is deemed reasonably necessary by CMS to 
prevent, deter, discover, detect, investigate, examine, prosecute, sue 
with respect to, defend against, correct, remedy, or otherwise combat 
fraud or abuse in such programs.
    Other agencies may require SPACE information for the purpose of 
combating fraud and abuse in such Federally funded programs.

B. Additional Circumstances Affecting Routine Use Disclosures

    This SOR contains Protected Health Information as defined by HHS 
regulation ``Standards for Privacy of Individually Identifiable Health 
Information'' (45 CFR parts 160 and 164, 65 FR 82462 (Dec. 28, 00), as 
amended by 66 FR 12434 (Feb. 26, 01)). Disclosures of Protected Health 
Information authorized by these routine uses may only be made if, and 
as, permitted or required by the ``Standards for Privacy of 
Individually Identifiable Health Information.''
    In addition, our policy will be to prohibit release even of non-
identifiable data, except pursuant to one of the routine uses, if there 
is a possibility that an individual can be identified through implicit 
deduction based on small cell sizes (instances where the patient 
population is so small that individuals who are familiar with the 
enrollees could, because of the small size, use this information to 
deduce the identity of the beneficiary).

IV. Safeguards

A. Administrative Safeguards

    The SPACE system will conform to applicable law and policy 
governing the privacy and security of Federal automated information 
systems. These include but are not limited to: the Privacy Act of 1974, 
Computer Security Act of 1987, the Paperwork Reduction Act (PRA) of 
1995, the Clinger-Cohen Act of 1996, and OMB Circular A-130, Appendix 
III, ``Security of Federal Automated Information Resources.'' CMS has 
prepared a comprehensive system security plan as required by the Office 
and Management and Budget (OMB) Circular A-130, Appendix III. This plan 
conforms fully to guidance issued by the National Institute for 
Standards and Technology (NIST) in NIST Special Publication 800-18, 
``Guide for Developing Security Plans for Information Technology 
Systems.'' Paragraphs A-C of this section highlight some of the 
specific methods that CMS is using to ensure the security of this 
system and the information within it.
    Authorized users: Personnel having access to the system have been 
trained in Privacy Act and systems security requirements. Employees and 
contractors who maintain records in the system are instructed not to 
release any data until the intended recipient agrees to implement 
appropriate administrative, technical, procedural, and physical 
safeguards sufficient to protect the confidentiality of the data and to 
prevent unauthorized access to the data. In addition, CMS will monitor 
the authorized users to ensure against excessive or unauthorized use. 
Records are used in a designated work area or workstation and the 
system location is attended at all times during working hours.
    To assure security of the data, the proper level of class user is 
assigned for each individual user as determined at the Agency level. 
This prevents unauthorized users from accessing and modifying critical 
data. The system database configuration includes five classes of 
database users:
     Database Administrator class owns the database objects; 
e.g., tables, triggers, indexes, stored procedures, packages, and has 
database administration privileges to these objects;
     Quality Control Administrator class has read and write 
access to key fields in the database;
     Quality Indicator (QI) Report Generator class has read-
only access to all fields and tables;
     Policy Research class has query access to tables, but are 
not allowed to access confidential individual identification 
information; and
     Submitter class has read and write access to database 
objects, but no database administration privileges.

B. Physical Safeguards

    All server sites have implemented the following minimum 
requirements to assist in reducing the exposure of computer equipment 
and thus achieve an optimum level of protection and security for the 
SPACE system:
    Access to all servers is controlled, with access limited to only 
those support personnel with a demonstrated need for access. Servers 
are to be kept in a locked room accessible only by specified management 
and system support personnel. Each server requires a specific log-on 
process. All entrance doors are identified and marked. A log is kept of 
all personnel who were issued a security card key and/or combination 
which grants access to the room housing the server, and all visitors 
are escorted while in this room. All servers are housed in an area 
where appropriate environmental security controls are implemented, 
which include measures implemented to mitigate damage to Automated 
Information System (AIS) resources caused by fire, electricity, water 
and inadequate climate controls.
    Protection applied to the workstations, servers and databases 
include:
     User Log-ons--Authentication is performed by the Primary 
Domain Controller/Backup Domain Controller of the log-on domain.

[[Page 40936]]

     Workstation Names--Workstation naming conventions may be 
defined and implemented at the Agency level.
     Hours of Operation--May be restricted by Windows NT. When 
activated all applicable processes will automatically shut down at a 
specific time and not be permitted to resume until the predetermined 
time. The appropriate hours of operation are determined and implemented 
at the Agency level.
     Inactivity Log-out--Access to the NT workstation is 
automatically logged out after a specified period of inactivity.
     Warnings--Legal notices and security warnings display on 
all servers and workstations.
     Remote Access Services (RAS)--Windows NT RAS security 
handles resource access control. Access to NT resources is controlled 
for remote users in the same manner as local users, by utilizing 
Windows NT file and sharing permissions. Dial-in access can be granted 
or restricted on a user-by-user basis through the Windows NT RAS 
administration tool.

C. Procedural Safeguards

    All automated systems must comply with Federal laws, guidance, and 
policies for information systems security as stated previously in this 
section. Each automated information system should ensure a level of 
security commensurate with the level of sensitivity of the data, risk, 
and magnitude of the harm that may result from the loss, misuse, 
disclosure, or modification of the information contained in the system.

V. Effect of the Modified SOR on Individual Rights

    CMS proposes to establish this system in accordance with the 
principles and requirements of the Privacy Act and will collect, use, 
and disseminate information only as prescribed therein. Data in this 
system will be subject to the authorized releases in accordance with 
the routine uses identified in this SOR.
    CMS will monitor the collection and reporting of SPACE data. SPACE 
information on individuals is completed by contractor personnel and 
submitted to CMS through standard systems located at different 
locations. CMS will utilize a variety of onsite and offsite edits and 
audits to increase the accuracy of SPACE data.
    CMS will take precautionary measures (see item IV. above) to 
minimize the risks of unauthorized access to the records and the 
potential harm to individual privacy or other personal or property 
rights. CMS will collect only that information necessary to perform the 
system's functions. In addition, CMS will make disclosure of 
identifiable data from the modified system only with consent of the 
subject individual, or his/her legal representative, or in accordance 
with an applicable exception provision of the Privacy Act.
    CMS, therefore, does not anticipate an unfavorable effect on 
individual privacy as a result of the disclosure of information 
relating to individuals.

    Dated: May 22, 2002.
Thomas A. Scully,
Administrator, Centers for Medicare & Medicaid Services.
09-70-0505

System Name:
    Supplemental Medical Insurance (SMI) and Hospital Insurance (HI) 
Premium Accounting Collection and Enrollment (SPACE) System, HHS/CMS/
CMM

Security Classification:
    Level Three Privacy Act Sensitive.

System Location:
    CMS Data Center, 7500 Security Boulevard, North Building, First 
Floor, Baltimore, Maryland 21244-1850.

Categories of Individuals Covered by the System:
    The system contains information on Medicare beneficiaries whose 
Part A HI and/or Part B SMI premiums are paid by a state Medicaid 
agency, OPM, or a formal third party group (latter as defined in 42 
Code of Federal Regulations (CFR) Secs. 408.80 through 408.92).

Categories of Records in the System:
    Information contained in this SOR consist of the beneficiary's 
name, health insurance claims number (HICN), date of birth, sex, amount 
of premium liability, date agency first became liable for HI or SMI 
premiums, last month of agency premium liability, agency identification 
number, and an United States Office of Personnel Management (OPM) 
annuity number.

Authority for Maintenance of the System:
    Authority for the maintenance of this SOR is given under the 
authority of secs. 1818, 1818A, (42 USC 1395i-2 and 2a), 1818(e) and 
(g) (42 USC 1395i-2(e) and (g), 1840 (d) and (e) (42 USC 1395s (d) and 
(e), and 1843 (42 USC 1395v) of Title XVIII of the Social Security Act 
(the Act).

Purpose(s):
    The primary purpose of this SOR is to process beneficiary premium 
billing accretions and deletions to third party premium payer accounts 
(state Medicaid agencies, OPM, and formal third party groups (latter as 
defined in 42 Code of Federal Regulations (CFR) Secs. 408.80 through 
408.92)) for the payment of Part B (SMI) and/or Part A (HI) premiums on 
behalf of Medicare beneficiaries and for enrolling individuals for HI 
or SMI coverage under state buy-in agreements. Information in this 
system may be used: by formal third party groups pursuant to agreements 
with CMS, by another Federal or state agency, agency of a state 
government, an agency established by state law, or its fiscal agent, to 
support regulatory and policy functions performed within the Agency or 
by a contractor or consultant, to an individual or organization for a 
research, evaluation, or epidemiological project, to support 
constituent requests made to a congressional representative, to support 
litigation involving the Agency related to this SOR, and to combat 
fraud and abuse in certain Federally funded health care programs.

Routine Uses of Records Maintained in the System, Including Categories 
or Users and the Purposes of Such Uses:
    The Privacy Act allows us to disclose information without an 
individual's consent if the information is to be used for a purpose 
that is compatible with the purpose(s) for which the information was 
collected. Any such compatible use of data is known as a ``routine 
use.'' The proposed routine use in this system meets the compatibility 
requirement of the Privacy Act. This SOR contains Protected Health 
Information as defined by HHS regulation ``Standards for Privacy of 
Individually Identifiable Health Information'' (45 CFR parts 160 and 
164, 65 FR 82462 (Dec. 28, 00), as amended by 66 FR 12434 (Feb. 26, 
01)). Disclosures of Protected Health Information authorized by these 
routine uses may only be made if, and as, permitted or required by the 
``Standards for Privacy of Individually Identifiable Health 
Information.''
    In addition, our policy will be to prohibit release even of non-
identifiable data, except pursuant to one of the routine uses, if there 
is a possibility that an individual can be identified through implicit 
deduction based on small cell sizes (instances where the patient 
population is so small that individuals who are familiar with the 
enrollees could, because of the small size, use this information to 
deduce the identity of the beneficiary). We are proposing to establish 
the following routine use disclosures of information that will be 
maintained in the system:

[[Page 40937]]

    1. To formal third party groups pursuant to agreements with the CMS 
to pay Medicare premiums on behalf of their members and who need to 
have access to the records in order to perform the activity.
    2. To another Federal or state agency, agency of a state 
government, an agency established by state law, or its fiscal agent 
pursuant to agreements with CMS to:
    a. Contribute to the accuracy of CMS's proper payment of Medicare 
benefits,
    b. Enable such agency to administer a Federal health benefits 
program, or as necessary to enable such agency to fulfill a requirement 
of a Federal statute or regulation that implements a health benefits 
program funded in whole or in part with Federal funds, and/or
    c. Assist Federal/state Medicaid programs within the state.
    3. To Agency contractors or consultants who have been engaged by 
the Agency to assist in accomplishment of an CMS function relating to 
the purposes for this SOR and who have need to have access to the 
records in order to assist CMS.
    4. To an individual or organization for research, evaluation, or 
epidemiological projects related to the prevention of disease or 
disability, the restoration or maintenance of health, or payment 
related projects.
    5. To a Member of Congress or congressional staff member in 
response to an inquiry of the congressional office made at the written 
request of the constituent about whom the record is maintained.
    6. To the Department of Justice (DOJ), court or adjudicatory body 
when:
    a. The Agency or any component thereof, or
    b. Any employee of the Agency in his or her official capacity, or
    c. Any employee of the Agency in his or her individual capacity 
where the DOJ has agreed to represent the employee, or
    d. The United States Government is a party to litigation or has an 
interest in such litigation, and by careful review, CMS determines that 
the records are both relevant and necessary to the litigation.
    7. To a CMS contractor (including, but not limited to fiscal 
intermediaries and carriers) that assists in the administration of a 
CMS-administered health benefits program, or to a grantee of a CMS-
administered grant program, when disclosure is deemed reasonably 
necessary by CMS to prevent, deter, discover, detect, investigate, 
examine, prosecute, sue with respect to, defend against, correct, 
remedy, or otherwise combat fraud or abuse in such program.
    8. To another Federal agency or to an instrumentality of any 
governmental jurisdiction within or under the control of the United 
States (including any state or local governmental agency), that 
administers, or that has the authority to investigate potential fraud 
or abuse in, a health benefits program funded in whole or in part by 
Federal funds, when disclosure is deemed reasonably necessary by CMS to 
prevent, deter, discover, detect, investigate, examine, prosecute, sue 
with respect to, defend against, correct, remedy, or otherwise combat 
fraud or abuse in such programs.

Policies and Practices for Storing, Retrieving, Accessing, Retaining, 
and Disposing of Records in the System:
Storage:
    Computer diskette and on magnetic storage media.

Retrievability:
    Information can be retrieved by name, HICN, and assigned agency 
identification number.

Safeguards:
    CMS has safeguards for authorized users and monitors such users to 
ensure against excessive or unauthorized use. Personnel having access 
to the system have been trained in the Privacy Act and systems security 
requirements. Employees who maintain records in the system are 
instructed not to release any data until the intended recipient agrees 
to implement appropriate administrative, technical, procedural, and 
physical safeguards sufficient to protect the confidentiality of the 
data and to prevent unauthorized access to the data.
    In addition, CMS has physical safeguards in place to reduce the 
exposure of computer equipment and thus achieve an optimum level of 
protection and security for the SPACE system. For computerized records, 
safeguards have been established in accordance with the Department of 
Health and Human Services (HHS) standards and National Institute of 
Standards and Technology guidelines, e.g., security codes will be used, 
limiting access to authorized personnel. System securities are 
established in accordance with HHS, Information Resource Management 
Circular 10, Automated Information Systems Security Program; 
CMS Automated Information Systems Guide, Systems Securities Policies, 
and OMB Circular No. A-130 (revised), Appendix III.

Retention and Disposal:
    Records are maintained in a secure storage area with identifiers 
for six years three months after final action of the case is completed.

System Manager(s) and Address:
    Director, Division of Premium Billing, Benefits Operations Group, 
Center for Medicare Management, CMS, 7500 Security Boulevard, S1-06-03, 
Baltimore, Maryland 21244-1850.

Notification Procedure:
    For purpose of access, the subject individual should write to the 
system manager who will require the system name, HIC, date of birth, 
and sex, and for verification purposes, the subject individual's name 
(woman's maiden name, if applicable), and social security number (SSN). 
Furnishing the SSN is voluntary, but it may make searching for a record 
easier and prevent delay.

Record Access Procedure:
    For purpose of access, use the same procedures outlined in 
Notification Procedures above. Requestors should also reasonably 
specify the record contents being sought. (These procedures are in 
accordance with Department regulation 45 CFR 5b.5(a)(2)).

Contesting Record Procedures:
    The subject individual should contact the system manager named 
above, and reasonably identify the record and specify the information 
to be contested. State the corrective action sought and the reasons for 
the correction with supporting justification. (These procedures are in 
accordance with Department regulation 45 CFR 5b.7).

Record Source Categories:
    Information contained in this records system is obtained from third 
party agencies, Social Security Administration's Master Beneficiary 
Record, and CMS' Enrollment Database.

Systems Exempted from Certain Provisions of the Act:
    None.

[FR Doc. 02-15004 Filed 6-13-02; 8:45 am]
BILLING CODE 4120-03-P