Medicare’s MTS system on hold
Responding to a critical General Accounting Office (GAO) report, Health Care Financing Administration (HCFA) has put final development and implementation of its new computerized billing system on hold.
The aim of the new system is to simplify Medicare billing and payment systems by consolidating its present 72 different contractor payment systems into one central program. The new system will also be able to better prevent fraud and abuse by combining Part A and Part B information, while simplifying billing procedures.
The GAO study felt HCFA had not properly planned the transition to the new claims processing system, recommending more development and testing to ensure it could handle the anticipated additional workload. In turn, HCFA has placed the outside procurement process on hold until it can further study the problem.
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