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Date: Thursday, April 25, 1996 FOR IMMEDIATE RELEASE Contact: HCFA Press Office(202) 690-6145
The Health Care Financing Administration announced today a request for bids on three new computer operating sites that will be the foundation for a new information management system for a changing Medicare program.
The sites will house the Medicare Transaction System (MTS), HCFA's new computer system currently under development.
Bids must be submitted by July 22 and HCFA expects to award the contracts in the spring 1997.
HCFA expects the number of Medicare beneficiaries to grow from about 40 million at the turn of the century to about 48 million by 2011 when the first baby boomers turn 65.
"MTS is an indispensable tool for meeting the future needs of Medicare beneficiaries and it will save taxpayers $200 million a year in administrative costs alone when it's fully implemented," said HCFA Administrator Bruce C. Vladeck, who oversees the Medicare program.
With MTS, the various payment and data systems currently in use will be replaced by one standard Medicare network. MTS will integrate Medicare fee-for-service and managed care data, standardize formats, enhance the coordination of insurance benefits, improve detection of program fraud and increase access to electronic data.
Data are currently processed at approximately 40 processing sites around the country. This request for bids will reduce that number to only three operating sites. If all factors are equal, special consideration will be given to contracts that locate operating sites in Empowerment and Enterprise Zones.
"Medicare contractors who currently process claims will continue to play a vital role in Medicare," Vladeck said. "These contractors will use the new system to provide enhanced customer service and to help prevent fraud."
The new system will be far more adaptable to the rapidly changing health care environment.
"In addition to improving claims processing, MTS will improve access to information," Vladeck said. "This will help Medicare beneficiaries use the different Medicare delivery choices we expect will be available to them, and enable us to provide world-class service and assure that Medicare dollars are spent appropriately."