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HEHS-95-101R 1 (1995-03-06)

handle is hein.gao/gaobacktt0001 and id is 1 raw text is: United States GAO General Accounting Office Washington, D.C. 20548 Health, Education and Human Services Division B-260636 March 6, 1995 The Honorable William M. Thomas Chairman, Subcommittee on Health Committee on Ways and Means House of Representatives Dear Mr. Chairman: On February 23, in testimony before your Subcommittee, we called attention to certain actions needed to realize savings under the Medicare Secondary Payer (MSP) program.' A specific problem that we identified dealt with a recent court ruling that invalidated Medicare procedures for recovering costs from insurers that are responsible for paying claims before Medicare. We agreed to provide suggested legislative language to resolve the problem. The enclosure to this letter contains the suggested language together with a technical explanation. In effect, the suggested language is designed to provide a clearer statutory basis for existing Medicare regulations. These regulations are critical to the effective recovery of Medicare funds, but were recently invalidated by the courts. While time did not permit us to submit the proposed language for formal review by the Department of Health and Human Services (HHS), we did discuss the proposed language with HHS legal staff, and the court ruling and its impact on the MSP program with Health Care Financing Administration program officials. They agreed that a legislative remedy is necessary and expressed their support of our efforts to assist your Subcommittee. We understand from them that HHS is preparing a legislative proposal to address this issue, possibly in conjunction with other Medicare issues. 'Medicare Secondary Payer Program: Actions Needed to Realize Savings (GAO/T-HEHS-95-92). GAO/HEHS-95-101R Medicare Secondary Payer Program

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