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 <subject>Health care programs</subject>
 <subject>Health insurance</subject>
 <subject>Health insurance cost control</subject>
 <subject>Internal controls</subject>
 <subject>Program management</subject>
 <subject>DOD TRICARE Program</subject>
 <subject>Hospital Insurance Trust Fund</subject>
 <subject>Medicare Choice Program</subject>
 <subject>Medicare Program</subject>
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 <title>Medicare: Successful Reform Requires Meeting Key Management Challenges</title>
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<abstract>Management of Medicare has come under increasing scrutiny. The
Health Care Financing Administration (HCFA) has had mixed success
running the program. The agency has developed payment methods	 
that have contained cost growth, and HCFA has paid		 
fee-for-service claims quickly and at low administrative cost.	 
However, HCFA has had difficulty ensuring that it paid claims	 
appropriately. In addition, Medicare claims administration	 
contractors have done a poor job of communicating with Medicare  
providers. HCFA has taken important steps to address some of	 
these shortcomings, including strengthening payment safeguards,  
but several factors have hampered its efforts. Despite its	 
growing responsibilities, HCFA suffers from staffing shortages.  
The agency also continues to rely on archaic computer systems. At
the same time, HCFA has faltered in its attempts to adopt a	 
results-based approach to agency management. Constraints on the  
agency&apos;s contracting authority have limited its use of full and  
open competition to select claims administration contractors and 
assign administrative tasks. Rising expectations among Medicare  
beneficiaries and providers are putting pressure on the Centers  
for Medicare and Medicaid Services to modernize and improve	 
agency operations. Such improvements will require HCFA to begin a
performance-based management approach that holds managers	 
accountable for achieving program goals. Congressional attention 
also appears warranted if Medicare is to meet the challenges of  
the 21st century.</abstract>
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<note>Testimony</note>
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 <topic>Health insurance cost control</topic>
 <topic>Internal controls</topic>
 <topic>Program management</topic>
 <topic>DOD TRICARE Program</topic>
 <topic>Hospital Insurance Trust Fund</topic>
 <topic>Medicare Choice Program</topic>
 <topic>Medicare Program</topic>
 <topic>National Medicare Education Program</topic>
 <topic>State Children&apos;s Health Insurance</topic>
 <topic>Program</topic>
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