[Federal Register: April 9, 2004 (Volume 69, Number 69)]
[Notices]               
[Page 18912-18913]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr09ap04-70]                         

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

 
Privacy Act of 1974; Computer Matching Program (CMS Match No. 
2004-03)

AGENCY: Department of Health and Human Services (HHS), Centers for 
Medicare & Medicaid Services (CMS).

ACTION: Notice of computer matching program.

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SUMMARY: In accordance with the requirements of the Privacy Act of 
1974, as amended, this notice announces a computer matching agreement 
between CMS and the Department of the Treasury, Internal Revenue 
Service (IRS). We have provided background information about the 
proposed matching program in the ``Supplementary Information'' section 
below. Although the Privacy Act requires only that CMS provide an 
opportunity for interested persons to comment on the proposed matching 
program, CMS invites comments on all portions of this notice. See 
``Effective Dates'' section below for comment period.

EFFECTIVE DATES: CMS filed a report of the Computer Matching Program 
with the Chair of the House Committee on Government Reform and 
Oversight, the Chair of the Senate Committee on Governmental Affairs, 
and the Administrator, Office of Information and Regulatory Affairs, 
Office of Management and Budget (OMB) on April 6, 2004. We will not 
disclose any information under a matching agreement until the later of 
40 days after filing a report to OMB and Congress or 30 days after 
publication in the Federal Register. We may defer implementation of 
this matching program if we receive comments that persuade us to defer 
implementation.

ADDRESSES: The public should address comments to: Director, Division of 
Privacy Compliance Data Development (DPCDD), Enterprise Databases 
Group, Office of Information Services, CMS, Mail stop N2-04-27, 7500 
Security

[[Page 18913]]

Boulevard, Baltimore, Maryland 21244-1850. Comments received will be 
available for review at this location, by appointment, during regular 
business hours, Monday through Friday from 9 a.m.-3 p.m., eastern 
daylight time.

FOR FURTHER INFORMATION CONTACT: Walter Stone, Senior Paralegal 
Specialist, Division of Data Liaison and Distribution, Enterprise 
Databases Group, Office of Information Services, CMS, Mail Stop N2-04-
27, 7500 Security Boulevard, Baltimore, Maryland 21244-1850. The 
telephone number is (410) 786-5357, or e-mail wstone@cms.hhs.gov.

SUPPLEMENTARY INFORMATION:

I. Description of the Matching Program

A. General

    The Computer Matching and Privacy Protection Act (CMPPA) of 1988 
(Public Law (Pub. L.) 100-503), amended the Privacy Act (5 U.S.C. 552a) 
by describing the manner in which computer matching involving Federal 
agencies could be performed and adding certain protections for 
individuals applying for and receiving Federal benefits. Section 7201 
of the Omnibus Budget Reconciliation Act of 1990 (Pub. L.100-508) 
further amended the Privacy Act regarding protections for such 
individuals. The Privacy Act, as amended, regulates the use of computer 
matching by Federal agencies when records in a system of records are 
matched with other Federal, state, or local government records. It 
requires Federal agencies involved in computer matching programs to:
    1. Negotiate written agreements with the other agencies 
participating in the matching programs;
    2. Obtain the Data Integrity Boards' (DIB) approval of the match 
agreements;
    3. Furnish detailed reports about matching programs to Congress and 
OMB;
    4. Notify applicants and beneficiaries that the records are subject 
to matching; and,
    5. Verify match findings before reducing, suspending, terminating, 
or denying an individual's benefits or payments.

B. CMS Computer Matches Subject to the Privacy Act

    CMS has taken action to ensure that all of the computer-matching 
programs that this agency participates in comply with the requirements 
of the Privacy Act of 1974, as amended.

    Dated: April 6, 2004.
Mark B. McClellan,
Administrator.
HHS Computer Match No. 2004-03

NAME:
    ``Medicare Prescription Drug Discount Card and Transitional 
Assistance Program''

SECURITY CLASSIFICATION:
    Level Three Privacy Act Sensitive

PARTICIPATING AGENCIES:
    Centers for Medicare & Medicaid Services (CMS), and
    The Department of the Treasury, Internal Revenue Service (IRS)

AUTHORITY FOR CONDUCTING MATCHING PROGRAM:
    The Medicare Prescription Drug, Improvement, and Modernization Act 
of 2003 (MPDIMA) (Pub. L. 108-173, Section 101, 117 Stat. 2066 (2003)) 
creates a discount prescription drug card program for certain 
individuals who receive Medicare benefits. This program has a phase-in 
period ending December 31, 2005, during which time certain individuals 
are eligible for transitional assistance. Section 101, Part D, Subpart 
4 of the MPDIMA adds Sec.  1860D-31(f) to the Social Security Act, 
requiring the Secretary of the Department of Health and Human Services 
(HHS) to determine if an individual is eligible for the discount card 
or for transitional assistance.
    Section 105(e)(1) of the MPDIMA adds new section 6103(1)(19) to the 
Internal Revenue Code (26 U.S.C. 6103(1)(19)), which authorizes the IRS 
to disclose specified return information of applicants for transitional 
assistance to officers, employees, and contractors of HHS. This 
authority does not extend to applicants for other benefits under the 
MPDIMA.

PURPOSE(S) OF THE MATCHING PROGRAM:
    The purpose of this Computer Matching Agreement (CMA) is to 
establish the conditions, safeguards, and procedures under which CMS 
will conduct a computer-matching program with the IRS to determine 
eligibility for the Transitional Assistance Program. The Transitional 
Assistance Program provides up to $600 to purchase prescription drugs 
to individuals whose annual income does not exceed 135% of the 
applicable Federal poverty level and who have no disqualifying 
outpatient drug coverage. This match will assist CMS to rapidly 
identify eligible applicants for this program.

CATEGORIES OF RECORDS AND INDIVIDUALS COVERED BY THE MATCH:
    Under this matching agreement, CMS will provide to the IRS an 
initial file containing the name, Social Security Number (SSN), and 
Health Insurance Claims Number (HICN) for all Medicare beneficiaries. 
This information will be taken from CMS's Medicare Beneficiary Database 
(CMS System No. 09-70-0536). IRS will match this information with the 
individual's taxpayer income information from the CADE--Individual 
Master File (IRS System No. 24.030), and create a separate file 
consisting of the name, SSN, and return information specified in 26 
U.S.C. 6103(1)(19) of each individual on the initial list. IRS will 
maintain this separate list for purposes of responding to CMS inquiries 
as to whether the income of a transitional assistance applicant exceeds 
the threshold amount. When Medicare beneficiaries apply for 
transitional assistance, and CMS cannot otherwise verify the income 
information provided on an application, CMS will disclose to IRS that 
applicant's name, SSN, HICN, and threshold amount. IRS will match this 
information with the separate list created as described above, and 
return to CMS a report file containing the applicant's SSN, HICN, and 
specified return information. CMS will use the IRS response to further 
process benefits applications under the transitional assistance 
program.

INCLUSIVE DATES OF THE MATCH:
    The Matching Program shall become effective no sooner than 40 days 
after the report of the Matching Program is sent to OMB and Congress, 
or 30 days after publication in the Federal Register, which ever is 
later. The match is expected to begin on May 1, 2004. The matching 
program will continue for 18 months from the effective date and may be 
extended for up to an additional 12 months thereafter, if certain 
conditions are met.

[FR Doc. 04-8181 Filed 4-7-04; 10:48 am]

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