[Federal Register Volume 67, Number 144 (Friday, July 26, 2002)]
[Notices]
[Pages 48906-48911]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-18170]


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

ACTION: Notice of modified or altered system of records.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, we are proposing to modify or alter a system of records, 
``Medicaid Statistical Information System (MSIS), System No. 09-70-
6001.'' We propose to delete published routine use number 1 pertaining 
to a contractor, number 5 pertaining to employees of a state 
government, number 6 pertaining to another Federal agency, and an 
unnumbered routine use authorizing disclosure to the Social Security 
Administration (SSA). Disclosures previously covered by routine uses 
number 5, 6, and to the SSA will be accomplished by adding a new 
routine use number 2 which authorizes release of information in this 
system to ``another Federal and/or state agency, agency of a state 
government, an agency established by state law, or its fiscal agent.'' 
We propose to modify the language of routine use number 1 to clarify 
the circumstances for disclosure under this routine use and retain the 
proposed placement of this routine use as number 1.
    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 
proposed 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 the system of records is to establish an 
accurate, current, and comprehensive database containing standardized 
enrollment, eligibility, and paid claims of Medicaid beneficiaries to 
be used for the administration of Medicaid at the Federal level, 
produce statistical reports, support Medicaid related research, and 
assist in the detection of fraud and abuse in the Medicare and Medicaid 
programs. Information in this system will also be used to: Support 
regulatory and policy functions performed within the Agency or by a 
contractor or consultant, another Federal or state agency, agency of a 
state government, an agency established by state law, or its fiscal 
agent, support research of policy issues, quality and effectiveness of 
care, and of epidemiological projects, support constituent requests 
made to a congressional representative, support litigation involving 
the Agency related to this system of records, and combat fraud and 
abuse in certain Federally funded health benefits 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 July 5, 2002. To ensure that all parties 
have adequate time in which to comment, the modified or altered system 
of records, 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: Ron North, Technical Advisor, Division 
of Informational Analysis and Technical Assistance, Center for Medicaid 
and State Operations, CMS, Room S3-17-26, 7500 Security Boulevard, 
Baltimore, Maryland 21244-1850. The telephone number is 410-786-5651.

[[Page 48907]]


SUPPLEMENTARY INFORMATION:   

I. Description of the Modified System of Records

Statutory and Regulatory Basis For System of Records

    In 1994, CMS established a system of records under the authority of 
Sec. 1902 (a)(6) of the Social Security Act (the Act)(42 Code of 
Federal Regulations (CFR) 1396a(a)(6)), and the Balanced Budget Act 
(Public Law 105-33). Notice of this system, MSIS, System No. 09-70-
6001,'' was published in the Federal Register at 59 FR 41327 (Aug. 11, 
1994), an unnumbered routine use was added for SSA at 61 FR 6645 (Feb. 
21, 1996), three new fraud and abuse routine uses were added at 63 FR 
38414 (July 16, 1998), and then at 65 FR 50552 (Aug. 18, 2000), two of 
the fraud and abuse routine uses were revised and a third deleted.

II. Collection and Maintenance of Data in the System

A. Scope of the Data Collected

    The system contains information concerning Medicaid beneficiaries, 
physicians, and other providers of services to Medicaid beneficiaries. 
Information on beneficiaries consist of an assigned Medicaid 
identification number, social security number (SSN), health insurance 
claims number (HICN), date of birth, sex, ethnicity and race, medical 
services, equipment, and supplies for which Medicaid reimbursement is 
requested, and materials used to determine amount of benefits allowable 
under Medicaid. Information on physicians and other providers of 
services to the beneficiary consist of an assigned provider 
identification number, and information used to determine whether a 
sanction or suspension is warranted.

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 MSIS 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 disclose the minimum personal data necessary to 
achieve the purpose of MSIS. CMS has the following policies and 
procedures concerning disclosures of information that will be 
maintained in the system. Disclosure of information from the system of 
records 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., establish an accurate, 
current, and comprehensive database for administration of the Medicaid 
program at the Federal level, produce statistical reports, support 
Medicaid related research, and assist in the detection of fraud and 
abuse in the Medicaid program.
    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 of 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 MSIS 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 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 system of records 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 system of records.
    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.
    2. To another Federal or state agency, agency of a state 
government, an agency established by state law, or its fiscal agent to:
    a. Contribute to the accuracy of CMS's proper management of 
Medicare/Medicaid benefits; and/or
    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. To assist Federal/state Medicaid programs within the state.
    Other Federal or state agencies in their administration of a 
Federal health program may require MSIS information for the purposes of 
determining, evaluating and/or assessing cost, effectiveness, and /or 
the quality of health care services provided in the state.
    SSA may require MSIS data to enable them to assist in the 
implementation and maintenance of the Medicare/Medicaid program.
    Disclosure under this routine use shall be used by state Medicaid 
agencies pursuant to agreements with HHS for determining Medicaid and 
Medicare eligibility, for quality control studies, for determining 
eligibility of recipients of assistance under Titles IV, XVIII, XIX and 
XXI of the Act, and for the administration of the Medicaid program.

[[Page 48908]]

Data will be released to the state only on those individuals who are 
eligibly enrollees, and beneficiaries under the services of a Medicaid 
program within the state or who are residents of that state.
    We also contemplate disclosing information under this routine use 
in situations in which state auditing agencies require MSIS information 
for auditing state Medicaid eligibility considerations. CMS may enter 
into an agreement with state auditing agencies to assist in 
accomplishing functions relating to purposes for this system of 
records.
    3. To an individual or organization for a research, evaluation, or 
epidemiological project related to the prevention of disease or 
disability, the restoration or maintenance of health, or payment 
related projects.
    MSIS data will provide for the research, evaluations, and 
epidemiological projects, a broader, longitudinal, national perspective 
of the status of Medicaid 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/Medicaid 
beneficiaries and the policy that governs the care.
    4. To a Member of Congress or to 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.
    Individuals sometimes request the help of a Member of Congress in 
resolving an issue relating to a matter before CMS. The Member of 
Congress then writes CMS, and CMS must be able to give sufficient 
information to be responsive to the inquiry.
    5. 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.
    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.
    6. 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 may enter 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.
    7. 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 MSIS 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 MSIS 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 is monitoring 
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

[[Page 48909]]

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 
MSIS 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 
that 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.
     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 System of Records 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 system of records.
    CMS will monitor the collection and reporting of MSIS data. MSIS 
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 MSIS 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: July 5, 2002.
Thomas A. Scully,
Administrator, Centers for Medicare & Medicaid Services.
System No. 09-70-6001

System Name:
    Medicaid Statistical Information System (MSIS), HHS/CMS/CMSO.

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 Medicaid beneficiaries, and 
physicians and other providers involved in furnishing services to 
Medicaid beneficiaries.

Categories of Records in the System:
    Information contained in this system include an assigned Medicaid 
identification number, social security number (SSN), health insurance 
claims number (HIC), date of birth, sex, ethnicity and race, medical 
services, equipment, and supplies for which Medicaid reimbursement is 
requested, and materials used to determine amount of benefits allowable 
under Medicaid. Information on physicians and other providers of 
services to the beneficiary consist of an assigned provider 
identification number, and information used to determine whether a 
sanction or suspension is warranted.

Authority for Maintenance of the System:
    Authority for the maintenance of this system of records is given 
under Sec. 1902 (a)(6) of the Social Security Act (42 United States 
Code (U.S.C.) Sec. 1396a (a)(6), and the Balanced Budget Act (Public 
Law 105-33).

Purpose(s) of the System:
    The primary purpose of the system of records is to establish an 
accurate, current, and comprehensive database containing standardized 
enrollment, eligibility, and paid claims of Medicaid beneficiaries to 
be used for the administration of Medicaid at the Federal level, 
produce statistical reports, support Medicaid related research, and 
assist in the detection of fraud and abuse in the Medicaid program. 
Information in this system will also be used to: support regulatory and 
policy functions performed within the

[[Page 48910]]

Agency or by a contractor or consultant, another Federal or state 
agency, agency of a state government, an agency established by state 
law, or its fiscal agent, support research of policy issues, quality 
and effectiveness of care, and of epidemiological projects, support 
constituent requests made to a congressional representative, support 
litigation involving the Agency related to this system of records, and 
combat fraud and abuse in certain Federally funded health benefits 
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:
    1. 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 system of records and who need to have access to 
the records in order to assist CMS.
    2. To another Federal or state agency, agency of a state 
government, an agency established by state law, or its fiscal agent to:
    a. Contribute to the accuracy of CMS's proper management of 
Medicare/Medicaid benefits; and/or
    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 an individual or organization for a research, evaluation, or 
epidemiological project related to the prevention of disease or 
disability, the restoration or maintenance of health, or payment 
related projects.
    4. To a Member of Congress or to 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.
    5. 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.
    6. To 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.
    7. 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 the assigned beneficiary 
identification number, SSN, HICN, and the assigned physician or other 
providers of services 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 MSIS 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. 
Disposal occurs ten years after the final determination of the case is 
completed.

System Manager and Address:
    Director, Division of Informational Analysis and Technical 
Assistance, Center for Medicaid and State Operations, CMS, Room S3-18-
17, 7500 Security Boulevard, Baltimore, Maryland 21244-1850.

Notification Procedure:
    For purpose of access, the subject individual should write to the 
system

[[Page 48911]]

manager who will require the system name, identification number, date 
of birth, and sex, and for verification purposes, the subject 
individual's name (woman's maiden name, if applicable), and 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:
    CMS obtains the identifying information contained in this system 
from state Medicaid agencies, or Medicaid Management Information 
Systems maintained by the individual states, and information contained 
on CMS Form 2082.

Systems Exempted From Certain Provisions of the Act:
    None.

[FR Doc. 02-18170 Filed 7-25-02; 8:45 am]
BILLING CODE 4120-03-P