HCFA Becomes CMS - Health Care Financing Administration renamed Centers for Medicare and Medicaid Services - Brief Article

Healthcare Financial Management, August, 2001

HCFA has been renamed the Centers for Medicare and Medicaid Services (CMS), HHS Secretary Tommy Thompson announced on June 14, 2001. Thompson explained that the new name reflects the agency's increased emphasis on responsiveness to beneficiaries and providers, and on improving the quality of care that Medicaid and Medicare beneficiaries receive. To that end, Thompson also announced the following reform efforts:

* Launching a media campaign to give senior citizens more information about their healthcare choices;

* Enhancing the 1-800-MEDICARE information line to a daily, 24-hour-a-day service;

* Reforming the contractor process to improve the quality and efficiency of the claims-processing services; and

* Instilling a new culture of responsiveness.

CMS will be restructured around the following three centers to reflect the agency's major lines of business:

* The Center for Medicare Management will manage the traditional fee-for-service Medicare program, developing payment policy and overseeing Medicare fee-for-service contractors.

* The Center for Beneficiary Choices will manage Medicare Choice plans, consumer research and demonstrations, and grievance and appeals functions, and disseminate information on Medicare, Medicare Select, Medicare Choice, and Medigap options.

* The Center for Medicaid and State Operations will deal with insurance-regulation functions and state-administered programs, including Medicaid, the State Children's Health Insurance Program (SCHIP), and the Clinical Laboratory Improvements Act (CLIA).

Thompson noted that the name change and restructuring are only preliminary steps and that additional changes are being considered. To read more about these initiatives, go to http://www.hhs.gov/news/press/2001.html, and scroll down to the June 14, 2001, listings.