[Federal Register Volume 64, Number 23 (Thursday, February 4, 1999)]
[Notices]
[Pages 5667-5668]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-2632]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Health Care Financing Administration
[HCFA-0001-N]
Medicare Program; Year 2000 Readiness Letter
AGENCY: Health Care Financing Administration (HCFA), HHS.
ACTION: Notice.
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The Health Care Financing Administration (HCFA) recently mailed the
following letter to over a million of its health care partners and
provider related associations regarding the Y2K issue. The message is
that HCFA will be ready to process and pay all acceptable claims by
January 1, 2000 and that providers must take steps to ensure their own
readiness in order to be paid promptly. Further, the Y2K problem has
implications for patient care. Providers should take steps to assure
that beneficiaries receive the same quality of care that is provided to
them today. The letter includes a checklist that providers can use as a
tool to assess their Y2K readiness.
Medicare providers were to begin submitting claims with 8-digit
date formats no later than January 1, 1999. However, it was recognized
that many providers needed additional time to modify and test their own
billing systems and, therefore, claims without 8-digit date formats
would continue to be accepted until further notice by HCFA. On January
13, 1999, we notified Medicare contractors that, beginning April 5,
1999, claims will be returned to providers if they are not submitted in
the Y2K format. To assist providers with Y2K readiness efforts,
Medicare contractors offer free or minimal cost Y2K compliant billing
software. Changing formats and using appropriately modified billing
software are just two of the important steps that providers must take
to assure that they are ready for the Year 2000.
The letter to health care partners is part of an extensive outreach
effort being conducted by HCFA to promote Y2K self-assessment and
readiness among all providers engaged in delivering health care
services to beneficiaries of Medicare, Medicaid and the Children's
Health Insurance Programs. HCFA has assumed a lead role in addressing
Y2K readiness in the health care sector and holds regular meetings and
discussions with a variety of industry groups. HCFA has strongly
encouraged health care industry associations to accelerate efforts to
assess the readiness of their provider members and to foster
remediation initiatives.
In addition to this letter to providers and the resource
information on its web site, www.hcfa.gov, HCFA has established a Y2K
Speakers Bureau and is prepared to make speakers available to health
care provider organizations that wish more detailed information about
Y2K readiness and the implications of the millennium change for the
industry.
FOR FURTHER INFORMATION CONTACT: Joe Broseker 410-786-1950 or Anita
Shalit 202-690-7179.
(Catalog of Federal Domestic Assistance Program No. 93.778, Medical
Assistance Program)
(Catalog of Federal Domestic Assistance Program No. 93.773,
Medicare--Hospital Insurance; and Program No. 93.774, Medicare--
Supplementary Medical Insurance Program)
Dated: January 28, 1999.
Nancy-Ann Min DeParle,
Administrator, Health Care Financing Administration.
January 12, 1999.
Dear Health Care Partner:
You have probably heard about the Year 2000 computer problem, or
the ``Y2K bug.'' As a health care practitioner or institution, you
need to be aware of how Y2K affects you and your patients. We all
must do our part so that Medicare and Medicaid beneficiaries
continue to receive high quality care, and you or your institution
continue to be paid accurately and promptly.
The Year 2000 problem appears simple on the surface. Many
computers and devices use only six digits to record dates. They may
read 01-01-00 as January 1, 1900, rather than January 1, 2000.
Patient care services, systems, and devices that rely on dates, the
age of the patient, and other calculations could be severely
affected if corrections are not made in time.
Every business and organization that relies on computer systems
or devices must address Y2K. For all of us in the health care
industry, it is a patient care issue as well as a business and
technical problem. As Administrator of the Health Care Financing
Administration (HCFA), I need to make sure you are aware of some key
points:
HCFA will be ready to process acceptable claims. We
have made substantial progress in correcting our own systems in
recent months and, despite earlier concerns, we will be ready on
time. We are confident that all Medicare claims processes will be
ready and able to function come January 1, 2000, so that you can be
paid promptly.
You must also be ready if you wish to be paid
promptly. We can process your claims only if your systems are also
able to function in the Year 2000. It is URGENT that you act NOW so
your systems will be ready. Otherwise, you may not be able to
receive prompt payment from Medicare, Medicaid, and virtually any
other payer.
Your entire practice and facility must be ready. The
Y2K problem could impact quality of care and patient safety. Patient
management systems, clinical information systems, defibrillators and
infusion pumps and other medical devices, even elevators and
security systems all must be ready.
We want to help you prepare for the Year 2000. Enclosed is a
``Sample Provider Y2K Readiness Checklist'' which you can use to
assess what you need to do. You can find additional useful
information at our www.hcfa.gov/Y2K web site. Information on medical
devices is available on the Food and Drug Administration's
www.fda.gov/cdrh/yr2000/year2000.html web site.
We are confident that HCFA will be ready, but we are also making
contingency plans so we can continue operations if unexpected
problems occur. For those of you that rely on computer systems, we
believe the greatest risk is that your systems will not be able to
bill for services.
You need to make sure you will be ready for the Year 2000. And,
like us, you need to make contingency plans for your critical
operations. These should focus especially on assuring safety for
your patients who are reliant on equipment and devices containing
embedded chips. In addition, you need to assure your ability to
generate bills and manage accounts receivables, and assure essential
services and supplies are maintained. Your patients and your
business may depend on this.
[[Page 5668]]
What can you do to avoid potential Y2K pitfalls? There are key
steps you can take to become Y2K ready:
Become aware of how the Year 2000 can affect your systems.
Anything that depends on a microchip or date entry could be
affected. Don't forget to identify those organizations that you
depend on or who depend on you. List everything and identify your
mission critical items, namely, those you cannot live without.
Assess the readiness of everything on your list. You can do this
by contacting your hardware or software vendors or accessing key
information from various web sites. Don't forget your maintenance
and service contractors. If your particular software program or form
is not Y2K ready, you need to decide whether you should invest in an
upgrade or replacement.
Update or replace systems, software programs, and devices you
decide are critical for your business continuity.
Test your existing and newly purchased systems and software. Do
not assume that a system or a program is Y2K ready just because
someone said it is. Test to make sure. During this process, keep
track of your test plans and outputs in case a problem surfaces
later. If you are not already using compliant electronic claim
formats, consider testing your electronic data interchanges (EDI)
with one or more of your payers, including Medicare. This will
ensure that your payer can accept your EDI transactions, especially
claims. Medicare can now accept claims with eight digit date
formats.
Develop business contingency (continuity) plans in the event
something goes wrong. Focus on the things that would be most
problematic for you and your patients.
The enclosed checklist may also be helpful. It is only meant to
be a guide and should not be considered all-inclusive.
Medicare beneficiaries are counting on all of us to meet the
Year 2000 challenge. We will be ready. Now you need to do your part
to be sure that you will continue to be paid as beneficiaries are
assured that they will continue to receive the health care they have
come to depend on.
Sincerely,
Nancy-Ann Min DeParle
Enclosure
Enclosure
Sample Provider Y2K Readiness Checklist
Please note: This checklist is intended as a supplemental guide
in helping you determine your Y2K readiness. Consider using this
along with other diagnostic and reference tools you have obtained
for this venture. The purpose of this checklist is to aid you in
determining your Y2K readiness. This information is not intended to
be all inclusive. The Health Care Financing Administration will not
assume any responsibility for your Y2K compliance.
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Item Y2K ready Not Y2K ready
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Bank debit/credit card
expiration dates.
Banking interface...........
Building access cards.......
Claim forms and other forms.
Clocks......................
Computer hardware (list)....
Computer software (list)....
Custom applications (list)..
Diagnostic equipment (list).
Elevators...................
Fire alarm..................
Insurance/pharmacy coverage
dates.
Membership cards............
Medical Devices (list)......
Monitoring equipment (list).
Smoke alarm.................
Telephone system............
Spreadsheets................
Treatment equipment (list)..
Safety vaults...............
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[FR Doc. 99-2632 Filed 2-3-99; 8:45 am]
BILLING CODE 4120-01-P
