The Association represents 45 independent Blue Cross and Blue Shield Plans throughout the nation. I appreciate the opportunity to testify before this joint Subcommittee hearing on how Medicare contractors communicate new rules and regulations to providers. Since 1965, Blue Cross and Blue Shield Plans have played a leading role in administering the program. Medicare Part A claims and about 60 percent of all Part B claims. In fiscal year 2000, it is estimated that contractors processed over 900 million claims, more than 3.5 million every working day.
Contractors also process the initial appeals of adverse claim decisions.
Most relevant to the purpose of this hearing, contractors are the main points of routine contact with the Medicare program for both beneficiaries and providers. Contractors educate providers and beneficiaries about Medicare and respond to about 40 million inquiries annually. The plan is reviewed with a PET advisory committee consisting of representatives from state and local medical societies, providers, and other entities that submit Medicare claims. Contractor communications with providers throughout the year take the form of quarterly newsletters, special bulletins, desk manuals, training seminars and publication of new instructions on contractor Internet websites. PET advisory committees are often used to review written communications and website changes for clarity.