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HRD-77-93 1 (1977-06-08)

handle is hein.gao/gaobaacjf0001 and id is 1 raw text is: 



                                                       RELEASED












RIORI'T (OF IlE
  Y)JITIK)LLER?

             ~ ux~ ED S TA TvL

                                                         LM102511






Anaiysis Of Variations In

Claims Processing Costs Of

Fiscal Agents For The Civilian

Health And Medical Program

Of The Uniformed Services

Department of Defense



Wde variations exist in claims processing
costs undder cost -reimbursable contracts be-
Cause. of ditt.e-ncles in administrative costs
charged to the p~ogtarn0 pruductivwty and
waqes of claim processors, claim volumes, and
othei factors. Claims proces' ,g costs are
higher than for Medicare and Medicaid partly
because of smaller claim volumes, a complex
claim form, and frequent program changes.

Corrective action is in process for the Civilian
Health and Medical Program of the Uni-
formed Sarvices. such as consolidation of
fiscal aqgnt operations to obtain benefits of
large volume operations and use of corn-
petitively bid f ied price contracts. These and
additional actor.c thould be rL-uied under
any new federally b,'rcd health insurance
program to maxirnize pvtrtorrniice and min-
imizc claims prcessinq costs of fisczl agents.

HRO-7793                                   JUNE 8, 1977

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