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<classification authority="sudocs">GA 1.13:HEHS/AIMD-94-79</classification>
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 <subject>Concurrency</subject>
 <subject>Medicare programs</subject>
 <subject>Computerized information systems</subject>
 <subject>Strategic information systems planning</subject>
 <subject>Health insurance cost control</subject>
 <subject>Administrative costs</subject>
 <subject>Requirements definition</subject>
 <subject>Risk management</subject>
 <subject>Claims processing</subject>
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 <title>Medicare: New Claims Processing System Benefits and Acquisition Risks</title>
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<abstract>A new system for processing Medicare claims offers considerable
opportunities to improve Medicare operations and safeguard program
dollars.  As such, the Medicare Transaction System--a new automated
system for processing claims--could strengthen the Health Care Financing
Administration&apos;s (HCFA) ability to manage contractor performance.
Although HCFA projects that the new system should yield administrative
cost savings, the exact amount of these is uncertain.  HCFA&apos;s planning
and acquisition strategy for the system is fraught with risks that could
prevent the new system from achieving its intended benefits and could
produce cost increases and schedule delays.  GAO supports HCFA&apos;s
planning and acquisition strategy changes to address these concerns.
Because of the size, complexity, and importance of the system to the
Medicare program, however, oversight by top management and Congress is
essential.</abstract>
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 <topic>Concurrency</topic>
 <topic>Medicare programs</topic>
 <topic>Computerized information systems</topic>
 <topic>Strategic information systems planning</topic>
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 <topic>Administrative costs</topic>
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