Pursuant to a congressional request, GAO analyzed the Health Care Financing Administration's (HCFA): (1) fiscal year (FY) 1990 budget request for its information technology systems and data processing needs; and (2) efforts to reduce Medicare contractors' automatic data processing (ADP) costs.
Recommendations for Executive Action
|Department of Health and Human Services||1. The Secretary of Health and Human Services should direct the Administrator, HCFA, to report all ADP costs, including Medicare contractor and Medicaid state operations, in the information technology system's budget.|
|Department of Health and Human Services||2. The Secretary of Health and Human Services should direct the Administrator, HCFA, to consider pursuing a more direct approach to cut Medicare contractor ADP system costs through shared processing and shared maintenance. This should include preparing a well-supported analysis of the benefits of sharing and an analysis of available approaches to implementing systems standardization and consolidation, including a determination of whether specific legislative authority is necessary.|