Oversight of Contract Management at the Centers for Medicare and Medicaid Services

The purpose of the hearing was to examine the management and oversight of contracts awarded by the Centers for Medicare and Medicaid Services (CMS). CMS, an agency of the U.S. Department of Health & Human Services, relies heavily on contractors to administer Medicare & Medicaid. The hearing focused on problems identified in a report recently issued by GAO entitled, Centers for Medicare and Medicaid Services: Deficiencies in Contract Management Internal Control Are Pervasive (GAO-10-60). The hearing also examined the findings of the Subcommittee’s investigation of the management and oversight of the Medicare Secondary Payer Recovery Contractor (MSPRC). Although Medicare generally serves as the primary payer of healthcare costs for its consumers, the Medicare Secondary Payer (MSP) statute provided for situations in which Medicare only serves as the secondary health insurance, or secondary payer for certain medical claims. In 2006, the Center for Medicare and Medicaid Services (CMS) awarded a $200 million cost-plus contract to Chickasaw Nation Industries, Inc. (CNI) to perform MSP recovery services. The Subcommittee initiated an investigation of the MSPRC contract in September 2009. Additional information and materials relating to this hearing are available at http://mccaskill.senate.gov/issues/soco/docs.cfm