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<classification authority="sudocs">GA 1.13:GAO-01-1141T</classification>
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 <subject>Billing procedures</subject>
 <subject>Health care programs</subject>
 <subject>Managed health care</subject>
 <subject>Claims processing</subject>
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 <title>Medicare: Improvements Needed in Provider Communications and Contracting Procedures</title>
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<abstract>Complete, accurate, and timely communication of program 	 
information is necessary to help Medicare providers comply with  
program requirements and appropriately bill for their services.  
Information provided to physicians about billing and payment	 
policies is often incomplete, confusing, out of date, or even	 
incorrect. GAO found that the rules governing Centers for	 
Medicare and Medicaid Services (CMS) contracts with its claims	 
processors lack incentives for efficient operations. Medicare	 
contractors are chosen without full and open competition from	 
among health insurance companies, rather from a broad universe of
potential qualified entities, and CMS almost always uses	 
cost-only contracts, which pay contractors for costs incurred but
generally do not offer any type of performance incentives. To	 
improve Medicare contractors&apos; provider communications, CMS must  
develop a more centralized and coordinated approach consistent	 
with the provisions of the Medicare Regulatory and Contracting	 
Reform Act (MRCRA) of 2001. MRCRA would require that CMS (1)	 
centrally coordinate contractors&apos; provider education activities, 
(2) establish communications performance standards, (3) appoint a
Medicare Provider Ombudsman, and (4) create a demonstration	 
program to offer technical assistance to small providers. MRCRA  
would also broaden CMS authority so that various types of	 
contractors would be able to compete for claims administration	 
contracts and their payment would reflect the quality of the	 
services they provide.</abstract>
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<note>Testimony</note>
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<subject>
 <topic>Billing procedures</topic>
 <topic>Health care programs</topic>
 <topic>Managed health care</topic>
 <topic>Claims processing</topic>
 <topic>Medicare Program</topic>
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