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<classification authority="sudocs">GA 1.13:T-HEHS-00-74</classification>
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 <subject>Health care programs</subject>
 <subject>Health insurance</subject>
 <subject>Erroneous payments</subject>
 <subject>Internal controls</subject>
 <subject>Medical information systems</subject>
 <subject>Health services administration</subject>
 <subject>Program abuses</subject>
 <subject>Fraud</subject>
 <subject>Managed health care</subject>
 <subject>Contract oversight</subject>
 <identifier>Medicare Choice Program</identifier>
 <identifier>Medicare Program</identifier>
 <identifier>HCFA Medicare Transaction System</identifier>
 <identifier>Supplementary Medical Insurance Trust Fund</identifier>
 <identifier>Hospital Insurance Trust Fund</identifier>
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 <title>Medicare: HCFA Faces Challenges to Control Improper</title>
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<abstract>Pursuant to a congressional request, GAO discussed the Health Care
Financing Administration&apos;s (HCFA) efforts to control improper payments
in the Medicare program, focusing on the ongoing and emerging challenges
HCFA faces in safeguarding Medicare payments.&lt;p/&gt;GAO noted that: (1) major information gaps exist in the Medicare
program--in both traditional Medicare and Medicare Choice--that impede
HCFA&apos;s ability to minimize program losses attributable to improper
payments; (2) in traditional Medicare, HCFA does not have a clear
picture of the individual or relative performance of Medicare&apos;s claims
administration contractors, which are responsible for safeguarding the
program&apos;s fee-for-service payments that totalled about $171 billion in
fiscal year 1999; (3) HCFA also lacks sufficient information on newly
designed payment systems to determine whether providers have delivered
excessive services or stinted on patient care to inappropriately
maximize payments; (4) as for Medicare Choice, HCFA similarly lacks the
data needed to monitor the appropriateness of payments made to health
plans and the services Medicare enrollees receive; (5) owing to a failed
attempt in the 1990s to modernize Medicare&apos;s multiple information
systems, HCFA&apos;s current systems remain seriously outmoded; and (6)
without effective systems, the agency is not well-positioned to collect
and analyze data regarding beneficiaries&apos; use of services--information
that is essential to managing the program effectively and safeguarding
program payments.</abstract>
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<identifier type="preferred citation">GAO/T-HEHS-00-74</identifier>
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<note>Testimony</note>
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 <searchTitle>GAO/T-HEHS-00-74; Medicare: HCFA Faces Challenges to Control Improper;
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<subject>
 <topic>Health care programs</topic>
 <topic>Health insurance</topic>
 <topic>Erroneous payments</topic>
 <topic>Internal controls</topic>
 <topic>Medical information systems</topic>
 <topic>Health services administration</topic>
 <topic>Program abuses</topic>
 <topic>Fraud</topic>
 <topic>Managed health care</topic>
 <topic>Contract oversight</topic>
 <topic>Medicare Choice Program</topic>
 <topic>Medicare Program</topic>
 <topic>HCFA Medicare Transaction System</topic>
 <topic>Supplementary Medical Insurance Trust Fund</topic>
 <topic>Hospital Insurance Trust Fund</topic>
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