Medicare News
| For Immediate Release: | Contact: |
| Wednesday, April 09, 1997 | CMS Office of Public Affairs 202-690-6145 |
For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov. |
|
AWARD OF CONTRACTS FOR SYSTEMS TO PAY MEDICARE CLAIMS
The Health Care Financing Administration announced today the award of a $20.1 million contract to Electronic Data System, Inc. (EDS) of Plano, Texas, to provide a standard system for the payment of Medicare physician, laboratory, and other outpatient bills. HCFA also announced that VIPS, Inc. of Towson, Md., was awarded a $24.1 million contract to provide a standard system for the payment of durable medical equipment claims.
HCFA Administrator Bruce C. Vladeck said, "The award of these contracts will allow HCFA to take an important step toward consolidating and updating the way it pays Medicare bills." Currently, bills for outpatient care and medical equipment are paid by six different claims processing systems. Today's contract awards will establish standard systems nationwide for the payment of these claims, improving the reliability and accountability of Medicare's payment systems.
"This action continues HCFA's progress toward developing a payment and information system to take Medicare into the 21st century," said Vladeck. "We need to reduce the disparity in Medicare payment system operations, maintenance, and capabilities to increase our ability to respond to changes in the health care system and improve service to beneficiaries and providers of care."
The selection of standard systems for outpatient and medical equipment follows a similar course now underway for hospitals and nursing homes. HCFA is converting all payment systems for bills from these facilities to a standard system.
Over the next two years, HCFA will transition to payment using the EDS and VIPS systems. HCFA officials emphasized that conversion to these systems would not adversely affect the agency's relationship with beneficiaries and health care providers. The contracts awarded today are a key part of the ongoing implementation of HCFA's Medicare Transaction System.
