[Comments on HCFA Medicare Integrity Program Operating Plans]

GAO commented on the Health Care Financing Administration's (HCFA) plans for operating the Medicare Integrity Program (MIP), focusing on whether: (1) the law authorizing the MIP permits HCFA to assign responsibility for local Medicare coverage policy to the payment safeguard contractors (PSC) who will run the MIP under contract to HCFA; and (2) HCFA's proposed MIP regulations would provide an adequate legal basis for HCFA to conduct local policy-making through PSCs. GAO noted that HCFA reasonably interpreted the law to mean that its PSCs could set local Medicare coverage policy. GAO also noted that the proposed MIP regulations provide an adequate basis for HCFA's action.