162
‘‘(3) MEDICARE
ADMINISTRATIVE
CON-
TRACTOR
DEFINED.—For purposes of this 
title and title XI—
‘‘(A) IN GENERAL.—The term ‘medi-
care 
administrative 
contractor’ 
means an agency, organization, or 
other person with a contract under 
this section. 
‘‘(B) APPROPRIATE
MEDICARE
AD-
MINISTRATIVE
CONTRACTOR.—With re-
spect to the performance of a par-
ticular function in relation to an indi-
vidual entitled to benefits under part 
A or enrolled under part B, or both, a 
specific provider of services or sup-
plier (or class of such providers of 
services or suppliers), the ‘appro-
priate’ medicare administrative con-
tractor is the medicare administra-
tive contractor that has a contract 
under this section with respect to the 
performance of that function in rela-
tion to that individual, provider of 
services or supplier or class of pro-
vider of services or supplier.
163
‘‘(4) FUNCTIONS DESCRIBED.—The func-
tions referred to in paragraphs (1) and (2) 
are payment functions, provider services 
functions, and functions relating to serv-
ices furnished to individuals entitled to 
benefits under part A or enrolled under 
part B, or both, as follows: 
‘‘(A) DETERMINATION
OF
PAYMENT 
AMOUNTS.—Determining 
(subject 
to 
the provisions of section 1878 and to 
such review by the Secretary as may 
be provided for by the contracts) the 
amount of the payments required 
pursuant to this title to be made to 
providers of services, suppliers and 
individuals. 
‘‘(B) MAKING
PAYMENTS.—Making 
payments described in subparagraph 
(A) (including receipt, disbursement, 
and accounting for funds in making 
such payments). 
‘‘(C) BENEFICIARY
EDUCATION
AND 
ASSISTANCE.—Providing education and 
outreach to individuals entitled to 
benefits under part A or enrolled
164
under part B, or both, and providing 
assistance to those individuals with 
specific issues, concerns or problems. 
‘‘(D) PROVIDER CONSULTATIVE SERV-
ICES.—Providing consultative services 
to institutions, agencies, and other 
persons to enable them to establish 
and maintain fiscal records necessary 
for purposes of this title and other-
wise to qualify as providers of serv-
ices or suppliers. 
‘‘(E) COMMUNICATION
WITH
PRO-
VIDERS.—Communicating to providers 
of services and suppliers any infor-
mation or instructions furnished to 
the 
medicare 
administrative 
con-
tractor by the Secretary, and facili-
tating communication between such 
providers and suppliers and the Sec-
retary. 
‘‘(F) 
PROVIDER
EDUCATION
AND 
TECHNICAL
ASSISTANCE.—Performing 
the functions relating to provider 
education, training, and technical as-
sistance.
165
‘‘(G) ADDITIONAL FUNCTIONS.—Per-
forming such other functions as are 
necessary to carry out the purposes 
of this title. 
‘‘(5) 
RELATIONSHIP
TO
MIP
CON-
TRACTS.—
‘‘(A) NONDUPLICATION OF DUTIES.—
In entering into contracts under this 
section, the Secretary shall assure 
that functions of medicare adminis-
trative contractors in carrying out ac-
tivities under parts A and B do not 
duplicate activities carried out under 
the 
Medicare 
Integrity 
Program 
under section 1893. The previous sen-
tence shall not apply with respect to 
the 
activity 
described 
in 
section 
1893(b)(5) (relating to prior author-
ization of certain items of durable 
medical 
equipment 
under 
section 
1834(a)(15)). 
‘‘(B) 
CONSTRUCTION.—An 
entity 
shall not be treated as a medicare ad-
ministrative contractor merely by 
reason of having entered into a con-
166
tract with the Secretary under sec-
tion 1893. 
‘‘(6) APPLICATION OF FEDERAL ACQUISI-
TION
REGULATION.—Except to the extent 
inconsistent with a specific requirement 
of this title, the Federal Acquisition Reg-
ulation applies to contracts under this 
title. 
‘‘(b) CONTRACTING REQUIREMENTS.—
‘‘(1) 
USE
OF
COMPETITIVE
PROCE-
DURES.—
‘‘(A) IN GENERAL.—Except as pro-
vided in laws with general applica-
bility to Federal acquisition and pro-
curement or in subparagraph (B), the 
Secretary shall use competitive pro-
cedures when entering into contracts 
with medicare administrative con-
tractors under this section, taking 
into account performance quality as 
well as price and other factors. 
‘‘(B) RENEWAL OF CONTRACTS.—The 
Secretary may renew a contract with 
a medicare administrative contractor 
under this section from term to term
167
without regard to section 5 of title 41, 
United States Code, or any other pro-
vision of law requiring competition, if 
the 
medicare 
administrative 
con-
tractor has met or exceeded the per-
formance 
requirements 
applicable 
with respect to the contract and con-
tractor, except that the Secretary 
shall provide for the application of 
competitive procedures under such a 
contract not less frequently than once 
every five years. 
‘‘(C) TRANSFER OF FUNCTIONS.—The 
Secretary 
may 
transfer 
functions 
among medicare administrative con-
tractors consistent with the provi-
sions of this paragraph. The Sec-
retary shall ensure that performance 
quality is considered in such trans-
fers. The Secretary shall provide pub-
lic notice (whether in the Federal 
Register or otherwise) of any such 
transfer (including a description of 
the functions so transferred, a de-
scription of the providers of services