Many computers currently use two digits to record the year.
The Year 2000 or Y2K conversion presents on the greatest information systems challenges since the inception of the Medicare and Medicaid programs and is critical to smooth processing of health care claims for the 70 million beneficiaries enrolled in thee programs. While there are a number of ways to accomplish this, one extremely reliable method is to expand the way a year is stored within a computer from two to four digits. HCFA has a Y2K readiness plan and has completed much of the systems renovation phase. Testing is already in progress for many systems. Y2K Impact on Providers Financially, providers' transfer of claims processing information and cash flow could be compromised if their systems and those with which they interface are not Y2K ready.