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089405 1 (1972-03-26)

handle is hein.gao/gaobacvjs0001 and id is 1 raw text is: 

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CIVIL DIVISION


UJN'TiE) S*'.etAT.  Gtir4! ACCOUwrmMf, 0H-FiCE


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     The General Accocunting Office has reviaged the procedures used
by Wasbingtor. 1PIyicians 1. Serv~ice (wUS) for proce~ssing and payIng
claimis for physiciasns! servicso pyovi~ed 'unr~ t ±s Supplamantary !{eical
Insurance prograi--ax't B  cae      IAS is th  h~dicare carrier for the-
State of Wasiington and uwas a system of 20 separate and autonomous
corporation s--nmodica3. sarv ice hoesn~-to process Vidicare claJIMIs.

     Our review, !shich waE dir~cted- toward an analysis of the effciency
and effectiveness of this dcentra-4ed. qproach  showed tat  the IRPS
system nay not be the nont a   iiot and effective method of processing
claims.  W~e believe that 03 systax could be iproved by either con-
solidating~ the activities TT the wqarb  buroaus ox by using an alternate
systemn for processing~ cairs.

CARRBES'  I  E IN ?R-OCES$IN CDA__1

     In February 1966, the Scotary  of HLET entered into a contract
wiith WPS to serve as the hiara   arier  Rox' th State of Tishington.
I'bst ofr the claims pracess~g fanation wns ths WPS contrart was in.
turn ssubcontracted to medical s2. riic brns Screams)  Ahch  act as
Midicare oarriers in thsir ~eToosos  eog raphical ares.   W)PS serves
as the eentkal coordinating body for' thet Bureauts and does not prpcess
any NEdicare part B claimus.

     At tha time of our rte'jw, the Burnaue v~ere uaing four different
systams for processing part B claims in the Stato of Washington. Three
of the Buraaus, including t>.e two largest which in fiscal years 1970 and
1971 proceseed about 52 percent of tha 0~dicare part B claims in the
State, did  Mhir claims processing in-houe.  The other 17, H~ich. processed
about 45 percent of the clais, had further suboontrictai with Computer
Services, Inc., (GSi) to do Part of thiell claimns processi~ng.

IRTMEMS  WIh  fl DCNRALIZEDSS-M

     The d&centralized o z-LiationaJ struoturs) usEd 'jr ITS iLs not,
in our opinion the' most efficint and efoctLva aylprach two doing
a job which appears to havo a  i  potentlia2 a! or u'sin g ci ntralized
automated pvccedares.  Gar ravion of Social Snauxity ANinstration
(SSA) records andi d inussiora Nrth SaL) &RU    6h~ awnd that Sah had
recognized for scoie tina tht mioot of thai Bureaus were not processing

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