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102852 1 (1977-07-21)

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DOCUMENT RESUME


02852 - [A20932071

Development and Organization of the Health Care Financing
Administration. Jujy 21, 1977. 29 pp.

Testimony before thc Senate Committee on Finance: Health
Subcomwittee; by Gregory J. Ahart, Director, HUmar Resources
Div.

Issue Area: Personnel Management and Compensation (300); Health
    Programs (1200).
Contact: Human Resources Div.
Budget Function: Health: General Health Financing Assistance
    (555) ; General Government: Central Personnel Management
    (805).
Organization Concerned: Health Care Financing Administration.
Congressional Relevance: Senate Committee on Finance: Health
    Subcommittee.
Authority: Social Security Act, sec. 1817. Social Security Act,
    sec. 1841.

         The reoLjanization cf the Health Care FiPanc'ng
Administration (14CFA) within the Depart-,ent of Health,
Education, and Welfare (HEW), which hss resulted in the
placement of redicaid, Medicare, and quality and standards
primarily under the direction cf one agency head, should result
in imprcved management of the pr',grams through better
coordination c- efforts and exchange of infoiwation. The
organizational structure, including the authorization of
staiIfic supergrade positions, is stil3 dev2loping. HCFA
req;uets ir supergrade ard executive level staff have been cut
in half zdncs the initial proposal, ard some reductions have
occurred sin'.e the Subcommittee on Health questioned the aatter.
The continued zplit betwzeen the Public Health Service and HCFA
can ba expected to result i f.iroblems with respect to the
administration and manag-;ment of the health financing program,.
authorized by the Social Security Act. TLere is evidence of
duplication and overlapping of staff activities in functional
ste tements issued by HCFA and other elements of HEW. However,
most of these duplications were in the area of planninq or
carrying out evaluations, studies, and research where the
identification of precise duplication based on broad functional
statements is difficult. The primary areas where real
consolidation has occurred are in program integrity and the
administration of standards and provider certifications. Little
aas occurred in other consolidation oL Medicaid and Hedi,:are
functions presumably because of the major differences in the
legislation for the two programs. (SC)

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