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TIM HUTCHINSON
UNITED STATES SENATOR      ARKANSAS


Contact: D.J. O'Brien (202) 224-2353

November 28, 2001

Hutchinson Joins Bipartisan Effort to Streamline Medicare Bureaucracy

Senator Tim Hutchinson today joined a bipartisan group of senators in introducing Medicare reform legislation that would provide new protections for seniors and improve the ability of providers to offer quality health care.

"Overly complicated regulations and cumbersome appeals processes inhibit the ability of Medicare beneficiaries to receive the medical care they need," said Hutchinson. "The bill I am cosponsoring today offers commonsense reforms to streamline procedures and make the system more accountable. I hope it will help lay the groundwork for broader Medicare reforms next year, including enactment of a prescription drug benefit."

The "Medicare Appeals, Regulatory, and Contracting Improvements Act," as it is called, would make several changes to help seniors and health care professionals navigate the myriad of Medicare regulations. The bill requires new rules and policies to be published on a regular time line and requires 30 days notice before a new rule or policy is implemented. Currently, no standard exists to communicate new Medicare requirements clearly and consistently to providers and beneficiaries.

The legislation seeks to clarify the Medicare appeals processes to settle billing, payment, and enforcement disputes in a more timely manner by increasing resources for Medicare-only administrative law judges. It would require the appeals process to be completed in no more than 180 days. The average adjudication time now for a Medicare appeal before an administrative law judge is 382 days. Additionally, Medicare could not recover overpayments until the second level of appeal is exhausted.

The bill increases competition in Medicare contracting by allowing the Centers for Medicare and Medicaid Services to select the best available administrative contractors to serve beneficiaries and providers. Current restrictions impose burdens and inefficiencies on contractors, health care professionals, seniors, and taxpayers.

Hutchinson joined Senators John Kerry (D-MA), Frank Murkowski (R-AK), Max Baucus (D-MT), and Charles Grassley (R-IA) in sponsoring the bill.

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