[Federal Register: July 13, 2006 (Volume 71, Number 134)]
[Notices]
[Page 39683-39684]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr13jy06-81]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
[CMS-4123-N]
Medicare Program; Solicitation for Proposals for Medical Savings
Account Demonstration Project
AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.
ACTION: Notice.
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SUMMARY: This notice is to inform interested parties of an opportunity
to apply to participate in the Medicare Advantage (MA) Medical Savings
Account (MSA) demonstration project. The MA MSA demonstration design
waives certain MA MSA plan requirements under sections 1859(b)(3),
1853(e), and 1854(c) of the Social Security Act. This waiver will allow
entities to offer products that more closely resemble high deductible
health plans (HDHPs) that are offered with Health Savings Accounts to
the non-Medicare population. This demonstration will be conducted in
accordance with the Secretary's demonstration authority under section
402(a)(1)(A) of the Social Security Amendments of 1967, 42 U.S.C.
1395b-1(a)(1)(A).
DATES: Applications will be considered timely if we receive them by
July 21, 2006.
FOR FURTHER INFORMATION CONTACT: Yolanda Robinson at (410) 786-7627.
Interested parties can obtain a complete solicitation, application, and
supporting information on the following CMS Web site at http://www.cms.hhs.gov/MedicareAdvantageApps/ .
ADDRESSES: Mail or deliver applications and NOIs to the following
address: Centers for Medicare and Medicaid Services, Attn: Yolanda
Robinson CBC/MAG/DQPM, Mail Stop C4-23-07, 7500 Security Blvd.,
Baltimore, MD 21244.
Because of staff and resource limitations, we cannot accept
applications by facsimile (FAX) transmission or by e-mail.
SUPPLEMENTARY INFORMATION:
I. Background
Sections 1851(a)(2)(C) and 1859(b)(3) of the Social Security Act
(the Act) authorize Medicare Advantage plans to offer Medical Savings
Accounts (MSAs) to beneficiaries. However, the required benefit
structure is not perceived by insurance organizations as easily
marketable. Similar to Health Savings Accounts (HSAs) accounts
currently
[[Page 39684]]
available in the commercial market, the MSA demonstration allows more
flexible benefits that will allow beneficiaries the freedom to exercise
control over their health care spending while providing important
protection against catastrophic health care costs. CMS is providing
flexibility with this MSA demonstration project to make the
increasingly popular consumer-directed plans available to Medicare
beneficiaries. The demonstration framework includes the flexibility we
are allowed under our demo authority.
The goal of the demonstration is to test whether the consumer
directed health plans in Medicare will help lower health care cost for
enrollees without adversely affecting the quality of health care
services. We expect that this demonstration will make ``HSA like'' MSAs
available to Medicare beneficiaries beginning January 1, 2007.
We are establishing this demonstration under section 402(a)(1)(A)
of the Social Security Amendments of 1967, 42 U.S.C. Sec. 1395b-
1(a)(1)(A), which authorizes the Secretary to conduct demonstrations
designed to test whether changes in methods of payment under Medicare
would have the effect of increasing the efficiency and economy of
Medicare services without adversely affecting the quality of services.
II. Provisions of the Notice
The purpose of this notice is to inform Medicare Advantage
organizations of an opportunity to apply to participate in the Medicare
Advantage (MA) Medical Savings Account (MSA) demonstration project. To
assist in the planning process, we have posted the MA MSA plan
demonstration framework as well as the MA MSA application on our Web
site at http://www.cms.hhs.gov/MedicareAdvantageApps/ . The framework
outlines specific parameters for design flexibilities. The MA MSA
application must be completed and the benefit design must stay within
the boundaries of the MA MSA plan demonstration framework. The
applicant must provide an operational discussion of the following:
Product offering;
Deposit calculations;
Recovery policy for the current-year deposit, and
procedures for members who are disenrolled from the plan before the end
of the contract year. (Note that disenrollment may occur only for the
reasons such as death or moving out of the service area as specified in
section 1851(e)(5)(B) of the Act);
Items and services to be counted toward the member's
deductible;
Whether a Prescription Drug Plan will be offered by your
organization and marketed to potential MSA enrollees;
Policy and procedures on portability of the member's
account;
Use of networks and whether/how cost sharing and the
member out-of-pocket maximum will vary in-network versus out-of-
network;
Service area for product offering and whether it is
individual and/or employer group; and
Any other aspects making the product offering different
from the statutory requirements of an MSA plan and as allowed under the
framework.
Medicare Advantage organizations interested in participating in
2007 must submit a complete MA MSA application, which is available on
the CMS Web site at http://www.cms.hhs.gov/MedicareAdvantageApps/ , no
later than July 21, 2006. Your organization's bid and benefit
submission is due no later than August 10, 2006. Organizations
interested in participating for 2008 are requested to submit an NOI to
CMS as soon as possible for us to understand the level of future
interest in the product. Submitting an NOI does not require your
organization to apply, nor is it required to apply. The NOI form is
posted at the above Web site.
III. Collection of Information Requirements
This information collection requirement is subject to the Paperwork
Reduction Act of 1995 (PRA); however, the collection is currently
approved under OMB control number 0938-0935 entitled ``Medicare
Advantage Applications'' with a current expiration date of July 31,
2006.
Authority: Section 402(a)(1)(A) of the Social Security Act, 42
U.S.C. 1395b-1.
(Catalog of Federal Domestic Assistance Program No. 93.778, Medical
Assistance Program; No. 93.773 Medicare--Hospital Insurance Program;
and No. 93.774, Medicare--Supplementary Medical Insurance Program)
Dated: May 30, 2006.
Mark B. McClellan,
Administrator, Centers for Medicare & Medicaid Services.
[FR Doc. 06-6192 Filed 7-10-06; 4:07 pm]
BILLING CODE 4120-01-P