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GAO-03-151R 1 (2002-10-31)

handle is hein.gao/gaocrptapcb0001 and id is 1 raw text is: G AO Accountability * Integrity * Reliability United States General Accounting Office Washington, D.C. 20548 October 31, 2002 The Honorable Stephen Horn Chairman, Subcommittee on Government Efficiency, Financial Management and Intergovernmental Relations Committee on Government Reform House of Representatives Subject: Medicare Financial Management: Significant Progress Made to Enhance Financial Accountability Dear Mr. Chairman: Medicare provided health care coverage to 40 million people age 65 and over and to qualifying disabled persons at a cost of about $240 billion in fiscal year 2001. In 1990, GAO designated the program as high risk for fraud and abuse because of its vast size, complex structure, and program management weaknesses.' In March and September 2000, we issued two reports, one on Medicare financial management and the other on Medicare improper payments.2 These reports discussed weaknesses in the Centers for Medicare and Medicaid Services' (CMS) oversight of Medicare contractors' financial operations and the guidance it provides contractors in carrying out Medicare financial activities. We also cited CMS for deficiencies in its accounting procedures and improper payment measurement projects. We made eight recommendations for CMS to improve its performance in these areas and establish better financial control over the Medicare program. At your request, we assessed CMS's progress in addressing these recommendations. This letter summarizes the information provided during our briefing to your staff on September 6, 2002. The enclosed briefing slides highlight the results of our work and the information provided at the briefing. 1U.S. General Accounting Office, High-Risk Series: An Update, GAO-01-261 (Washington, D.C: January 2001). 2U.S. General Accounting Office, Medicare Financial Management: Further Improvements Needed to Establish Adequate Financial Control and Accountability, (GA -A [) -00-6i6 (Washington, D.C.: Mar. 15, 2000) and Medicare Improper Payments: While Enhancements Hold Promise for Measuring Potential Fraud and Abuse, Challenges Remain, G A() AiMI)/OS1 -O0 -28 1. (Washington, D.C.: Sept. 15, 2000). GAO-03-151R Medicare Financial Management Page 1

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