98-30661. Emergency Clearance: Public Information Collection Requirements Submitted to the Office of Management and Budget (OMB)

[Federal Register Volume 63, Number 221 (Tuesday, November 17, 1998)]
[Notices]
[Pages 63936-63937]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-30661]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Health Care Financing Administration
[Form #HCFA-R-0264-a,b,c,d,e]


Emergency Clearance: Public Information Collection Requirements 
Submitted to the Office of Management and Budget (OMB)

    In compliance with the requirement of section 3506(c)(2)(A) of the 
Paperwork Reduction Act of 1995, the Health Care Financing 
Administration (HCFA), Department of Health and Human Services (DHHS), 
is publishing the following summary of a proposed collection for public 
comment. Interested persons are invited to send comments regarding this 
burden estimate or any other aspect of this collection of information, 
including any of the following subjects: (1) The necessity and utility 
of the proposed information collection for the proper performance of 
the agency's functions; (2) the accuracy of the estimated burden; (3) 
ways to enhance the quality, utility, and clarity of the information to 
be collected; and (4) the use of automated collection techniques or 
other forms of information technology to minimize the information 
collection burden.
    We are, however, requesting an emergency review of the information 
collections referenced below. In compliance with the requirement of 
section 3506(c)(2)(A) of the Paperwork Reduction Act of 1995, we have 
submitted to the Office of Management and Budget (OMB) the following 
requirements for emergency review. We are requesting an emergency 
review because the collection of this information is needed prior to 
the expiration of the normal time limits under OMB's regulations at 5 
CFR, part 1320 and is essential to the mission of the Agency. The 
Agency cannot reasonably comply with the normal clearance procedures 
because of a statutory deadline imposed by section 4319 of the Balanced 
Budget Act of 1997. Without this information, HCFA would not be able to 
properly implement all of the requirements set forth in the statute 
prior to the statute's sunset provision, causing a statutorily ordered 
deadline to be missed. Also, an unanticipated event has occurred, which 
may contribute to the missing of the statutory deadline. In particular, 
HCFA inadvertently referenced the incorrect statutory section in the 
location of the previous notice justifying the need for emergency 
clearance, published in the Federal Register on October 16, 1998, at 63 
FR 55631. While the correct section of statute mandating the collection 
was denoted elsewhere in the notice, a commentor pointed out that the 
statutory citation specifically justifying the need for emergency 
clearance was incorrect. Therefore, HCFA is correcting its oversight by 
republishing its request for OMB review and approval of this 
collection. Lastly, emergency clearance is requested because public 
harm will likely result if the normal clearance procedures are 
followed. Studies by the Government Accounting Office and the Office of 
the Inspector General have found that Medicare payments for items of 
durable medical equipment are far greater than prices paid by other 
insurers and are sometimes greater than prices available to the general 
public at retail outlets. And, the payments provided under Medicare fee 
schedules often represent unreasonably high markups from actual prices 
paid by suppliers. The use of the standard OMB approval process will 
cause the nonfulfillment the statutory requirements set forth in 
section 4319 of the Balanced Budget Act of 1997 that seek to address 
these issues, resulting in public harm by allowing the unnecessary loss 
of public Medicare trust fund dollars.
    HCFA is requesting OMB review and approval of this collection 
within six working days, with a 180-day approval period. Written 
comments and recommendations will be accepted from the public if 
received by the individual designated below within five working days.
    During this 180-day period, we will publish a separate Federal 
Register notice announcing the initiation of an extensive 60-day agency 
review and public comment period on these requirements. We will submit 
the requirements for OMB review and an extension of this emergency 
approval.
    Type of Information Collection Request: New collection;
    Title of Information Collection: Collection of DMEPOS Supplier Data 
in Support of the Medicare DMEPOS Competitive Bidding Demonstration 
using form (HCFA-R-0264) and Supporting Statute Section 4319 of the 
Balanced Budget Act of 1997;
    Form No.: HCFA-R-0264;
    Use: Section 4319 of the Balanced Budget Act (BBA) mandates HCFA to 
implement demonstration projects under which competitive acquisition 
areas are established for contract award purposes for the furnishing of 
Part B items and services, except for physician's services. The first 
of these demonstration projects implements competitive bidding of 
categories of

[[Page 63937]]

durable medical equipment, prosthetics, orthotics, and supplies 
(DMEPOS). Under the law, suppliers can receive payments from Medicare 
for items and services covered by the demonstration only if their bids 
are competitive in terms of quality and price. Each demonstration 
project may be conducted in up to three metropolitan areas for a three 
year period. Authority for the demonstration expires on December 31, 
2002. The schedule for the demonstration anticipates about a six month 
period required between mailing the bidding forms to potential bidders 
and the start of payments for DMEPOS under the demonstration. HCFA 
intends to operate the demonstration in two rounds, the first of two 
years, and the second of one year. HCFA has announced that it intends 
to operate its first demonstration in Polk County, Florida, which is 
the Lakeland-Winter Haven Metropolitan Area.
    There are five forms that are required for the demonstration. The 
first, HCFA-R-0264A, will be filled out by suppliers to describe the 
attributes of their organization, including quality of services and 
financial data. Form HCFA-R-0264B will be filled out by suppliers for 
each of the categories of DMEPOS for which they bid, and includes 
information about their supply of that category of equipment or 
supplies, and the prices that they bid for each item in that category. 
Form HCFA-R-0264C will be used by site inspectors who gather 
information at the facilities of bidders. Form HCFA-R-0264D is used to 
gather data by telephone from referral sources of business for the 
bidding suppliers, and form HCFA-R-0264E is used to gather data by 
telephone from banks and other financial institutions for financial and 
business references.
    The competitive bidding demonstration for DMEPOS has the following 
objectives:
     Test the policies and implementation methods of 
competitive bidding to determine whether or not it should be expanded 
as a Medicare Program.
     Reduce the price that Medicare pays for medical equipment 
and supplies.
     Limit beneficiary out-of-pocket expenditures for 
copayments.
     Improve beneficiary access to high quality medical 
equipment and supplies.
     Prevent business transactions with suppliers who engage in 
fraudulent practices.
    HCFA plans to mail the bidding package, including the referenced 
forms A and B, to potential bidders at the first demonstration sites in 
Polk County, Florida on November 16, 1998, and to request bidder 
submissions by December 16, 1998. The remaining forms C, D and E will 
be used for inspections and reference checking in the three months 
following the bid submissions. These forms will be used by HCFA or its 
agents to gather information regarding bidders who have made 
financially attractive bids and are being evaluated for quality, 
financial stability, and other attributes for consideration as 
demonstration suppliers.
    Frequency: Two times at each demonstration site;
    Affected Public: Business or other for-profit, and not-for-profit 
institutions;
    Number of Respondents: 2,040;
    Total Annual Responses: 2,040;
    Total Annual Hours: 25,260
    To obtain copies of the supporting statement and any related forms 
for the proposed paperwork collections referenced above, access HCFA's 
Web Site address at http://www.hcfa.gov/regs/prdact95.htm, OR E-mail 
your request, including your address, phone number, and HCFA form 
number(s) referenced above, to [e-mail], or call the Reports 
Clearance Office on [phone].
    Interested persons are invited to send comments regarding the 
burden or any other aspect of these collections of information 
requirements. However, as noted above, comments on these information 
collection and recordkeeping requirements must be mailed and/or faxed 
to the designee referenced below, within five working days:

Health Care Financing Administration, Office of Information Services, 
Security and Standards Group, Division of HCFA Enterprise Standards, 
Room: N2-14-26, 7500 Security Boulevard, Baltimore, Maryland 21244-
1850, Fax Number: [phone], Attn: John Burke
      or
Office of Information and Regulatory Affairs, Office of Management and 
Budget, Room 10235, New Executive Office Building, Washington, DC 
20503, Fax Number: [phone] or [phone], Attn: Allison 
Herron Eydt, HCFA Desk Officer.

    Dated: November 10, 1998.
John P. Burke III,
HCFA Reports Clearance Officer, HCFA, Office of Information Services, 
Security and Standards Group, Division of HCFA Enterprise Standards.
[FR Doc. 98-30661 Filed 11-16-98; 8:45 am]
BILLING CODE 4120-03-P