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GAO-01-458R 1 (2001-02-27)

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       Accountability * Integrity * Reliability
United States General Accounting Office
Washington, DC 20548

          B-287290



          February 27, 2001

          The Honorable Chuck Grassley
          Chairman
          The Honorable Max Baucus
          Ranking Member
          Committee on Finance
          United States Senate

          The Honorable W. J. (Billy) Tauzin
          Chairman
          The Honorable John D. Dingell
          Ranking Minority Member
          Committee on Energy and Commerce
          House of Representatives

          Subject: Department of Health and Human Services, Health Care Financing
                  Administration: Medicaid Program Medicaid Managed Care

          Pursuant to section 801(a) (2) (A) of title 5, United States Code, this is our report on a
          major rule promulgated by the Department of Health and Human Services, Health
          Care Financing Administration (HCFA), entitled Medicaid Program; Medicaid
          Managed Care (RIN: 0938-AI70). We received the rule on February 13, 2001. It was
          published in the Federal Register as a final rule with comment period on January 19,
          2001. 66 Fed. Reg. 6228.

          The final rule implements provisions of the Balanced Budget Act of 1997 that, among
          other changes, allow states greater flexibility by permitting them to amend their state
          plan to require certain categories of Medicaid beneficiaries to enroll in managed care
          entities without obtaining waivers, if beneficiary choice is provided.

          Enclosed is our assessment of the HCFA's compliance with the procedural steps
          required by section 801(a)(1)(B)(i) through (iv) of title 5 with respect to the rule.
          Our review indicates that HCFA complied with the applicable requirements.

          If you have any questions about this report, please contact James W. Vickers,
          Assistant General Counsel, at (202) 512-8210. The official responsible for GAO


GAO-01-458R

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