[Federal Register: December 4, 2006 (Volume 71, Number 232)]
[Notices]
[Page 70404-70407]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04de06-63]
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DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services
Privacy Act of 1974; Report of a Modified or Altered System of
Records
AGENCY: Department of Health and Human Services (HHS), Centers for
Medicare & Medicaid Services (CMS).
ACTION: Notice of a Modified or Altered System of Records (SOR).
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SUMMARY: In accordance with the Privacy Act of 1974, we are proposing
to modify or alter an existing SOR, ``Medicare Supplier Identification
File (MSIF),'' System No. 09-70-0530, last published at 67 Federal
Register 48184 (July 23, 2002). The system will facilitate the
identification of business owners who have been sanctioned by the
Office of Inspector General and/or have questionable business practices
within the Medicare program. The carriers will be able to review
questionable claims before payment that has been found to be more
effective than post-payment reviews. We propose to modify existing
routine use number 1 that permits disclosure to agency contractors and
consultants to include disclosure to CMS grantees who perform a task
for the agency. CMS grantees, charged with completing projects or
activities that require CMS data to carry out that activity, are
classified separate from CMS contractors and/or consultants. The
modified routine use will remain as routine use number 1.
We will delete routine use number 2 authorizing disclosure to
support constituent requests made to a congressional representative. If
an authorization for the disclosure has been obtained from the data
subject, then no routine use is needed. The Privacy Act allows for
disclosures with the ``prior written consent'' of the data subject. We
will broaden the scope of routine uses number 4 and 5, authorizing
disclosures to combat fraud and abuse in the Medicare and Medicaid
programs to include combating ``waste'' which refers to specific
beneficiary/recipient practices that result in unnecessary cost to all
Federally-funded health benefit programs.
We are modifying the language in the remaining routine uses to
provide a proper explanation as to the need for the routine use and to
provide clarity to CMS's intention to disclose individual-specific
information contained in this system. The routine uses will then be
prioritized and reordered according to their usage. We will also take
the opportunity to update any sections of the system that were affected
by the recent reorganization or because of the impact of the Medicare
Prescription Drug, Improvement, and Modernization Act of 2003 (MMA)
(Pub. L. 108-173) provisions and to update language in the
administrative sections to correspond with language used in other CMS
SORs.
The primary purpose of this modified system is to identify supplier
businesses that are eligible to receive Medicare payments for items and
services furnished to Medicare beneficiaries as well as owners,
managing employees, and subcontractors in those suppliers. The
information retrieved from this system of records will also be
disclosed to: (1) Support regulatory, reimbursement, and policy
functions performed within the agency or by a contractor, consultant,
or grantee; (2) support litigation involving the agency; and (3) combat
fraud, waste, and abuse in Federally-funded health benefits programs.
We have provided background information about the modified system in
the ``Supplementary Information'' section below. Although the Privacy
Act requires only that CMS provide an opportunity for interested
persons to comment on the modified or altered routine uses, CMS invites
comments on all portions of this notice. See EFFECTIVE DATES section
for comment period.
DATES: Effective Dates: CMS filed a modified or altered system report
with the Chair of the House Committee on Government Reform and
Oversight, the Chair of the Senate Committee on Homeland Security &
Governmental Affairs, and the Administrator, Office of Information and
Regulatory Affairs, Office of Management and Budget (OMB) on November
28, 2006. To ensure that all parties have adequate time in which to
comment, the modified system, including routine uses, will become
effective 30 days from the publication of the notice, or 40 days from
the date it was submitted to OMB and Congress, whichever is later,
unless CMS receives comments that require alterations to this notice.
ADDRESSES: The public should address comments to: CMS Privacy Officer,
Division of Privacy Compliance, Enterprise Architecture and Strategy
Group, Office of Information Services, CMS, Room N2-04-27, 7500
Security 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 time zone.
FOR FURTHER INFORMATION CONTACT: Barry Bromberg, Division of Provider/
Supplier Enrollment, Program Integrity Group, Office of Financial
Management, CMS, Mail Stop N3-02-16, 7500 Security Boulevard,
Baltimore, Maryland 21244-1850. He can also be reached by telephone at
410-786-9953, or via e-mail at Barry.Bromberg@cms.hhs.gov.
SUPPLEMENTARY INFORMATION: CMS established a new SOR, in 1992, under
the authority of sections 1124, 1124A, 1126, and 1833(e) of Title XVIII
of the Social Security Act (the Act) (Title 42 United States Code
(U.S.C.) Sec. Sec. 405, 426, 1395c, and 1395k). Notice of this system,
MSIF, was most recently published in the Federal Register (Fed. Reg.)
67 FR 48184 (July 23, 2002), deleting 2 routine uses and updating the
security classification, two fraud and abuse routine uses were revised
and one deleted at 65 FR 50552 (August 18, 2000), one routine use was
added at 61 FR 6645 (February 21, 1996), and at 57 FR 23420 (June 3,
1992).
I. Description of the Modified or Altered System of Records
A. Statutory and Regulatory Basis for SOR
Authority for maintenance of the system is given under sections
1124, 1124A, 1126, and 1833(e) of the Social Security Act (Title 42
United States Code (U.S.C.) Sec. Sec. 1320a-3, 1320a-3a, 1320a-5, and
13951(e)).
B. Collection and Maintenance of Data in the System
MSIF contains information on owners and managing employees of
suppliers of Durable Medicare Equipment, Prosthetics, Orthotics, and
Supplies (DMEPOS), which provide service or supplies to Medicare
beneficiaries. The system contains, but is not limited to: Business
names and addresses, owner's name, owner's social security number,
Unique Physician/Practitioner Identification Number, managing
employee's name, employer identification number or other tax reporting
number, and the carrier assigned billing numbers.
II. Agency Policies, Procedures, and Restrictions on the Routine Use
A. Agency Policies, Procedures, and Restrictions on the Routine Use
The Privacy Act permits us to disclose information without an
individual's consent if the information is to be used for a purpose
that is compatible with the
[[Page 70405]]
purpose(s) for which the information was collected. Any such disclosure
of data is known as a ``routine use.'' The government will only release
MSIF information that can be associated with an individual as provided
for under ``Section III. Proposed Routine Use Disclosures of Data in
the System.'' Both identifiable and non-identifiable data may be
disclosed under a routine use.
We will only collect the minimum personal data necessary to achieve
the purpose of MSIF. CMS has the following policies and procedures
concerning disclosures of information that will be maintained in the
system. Disclosure of information from this system will be approved
only to the extent necessary to accomplish the purpose of the
disclosure and only after CMS:
1. Determines that the use or disclosure is consistent with the
reason that the data is being collected, e.g., to identify supplier
businesses that are eligible to receive Medicare payments for items and
services furnished to Medicare beneficiaries as well as owners,
managing employees, and subcontractors in those suppliers.
2. Determines that:
a. The purpose for which the disclosure is to be made can only be
accomplished if the record is provided in individually identifiable
form;
b. The purpose for which the disclosure is to be made is of
sufficient importance to warrant the effect and/or risk on the privacy
of the individual that additional exposure of the record might bring;
and
c. There is a strong probability that the proposed use of the data
would in fact accomplish the stated purpose(s).
3. Requires the information recipient to:
a. Establish administrative, technical, and physical safeguards to
prevent unauthorized use of disclosure of the record;
b. Remove or destroy at the earliest time all patient-identifiable
information; and
c. Agree to not use or disclose the information for any purpose
other than the stated purpose under which the information was
disclosed.
4. Determines that the data are valid and reliable.
III. Proposed Routine Use Disclosures of Data in the System
A. The Privacy Act allows us to disclose information without an
individual's consent if the information is to be used for a purpose
that is compatible with the purpose(s) for which the information was
collected. Any such compatible use of data is known as a ``routine
use.'' The proposed routine uses in this system meet the compatibility
requirement of the Privacy Act. We are proposing to establish the
following routine use disclosures of information maintained in the
system:
1. To agency contractors, or consultants, or to a grantee of a CMS-
administered grant program who have been engaged by the agency to
assist in the accomplishment of a CMS function relating to the purposes
for this system and who need to have access to the records in order to
assist CMS.
We contemplate disclosing this information under this routine use
only in situations in which CMS may enter into a contractual or similar
agreement with a third party to assist in accomplishing a CMS function
relating to purposes for this system.
CMS occasionally contracts out certain of its functions when doing
so would contribute to effective and efficient operations. CMS must be
able to give a contractor, consultant or grantee whatever information
is necessary for the contractor, consultant or grantee to fulfill its
duties. In these situations, safeguards are provided in the contract
prohibiting the contractor, consultant or grantee from using or
disclosing the information for any purpose other than that described in
the contract and requires the contractor, consultant or grantee to
return or destroy all information at the completion of the contract.
2. To the Department of Justice (DOJ), court or adjudicatory body
when:
a. The agency or any component thereof, or
b. Any employee of the agency in his or her official capacity, or
c. Any employee of the agency in his or her individual capacity
where the DOJ has agreed to represent the employee, or
d. The United States Government is a party to litigation or has an
interest in such litigation, and by careful review, CMS determines that
the records are both relevant and necessary to the litigation and that
the use of such records by the DOJ, court or adjudicatory body is
compatible with the purpose for which the agency collected the records.
Whenever CMS is involved in litigation, and occasionally when
another party is involved in litigation and CMS' policies or operations
could be affected by the outcome of the litigation, CMS would be able
to disclose information to the DOJ, court or adjudicatory body
involved.
3. To a CMS contractor (including, but not necessarily limited to
fiscal intermediaries and carriers) that assists in the administration
of a CMS-administered health benefits program, or to a grantee of a
CMS-administered grant program, when disclosure is deemed reasonably
necessary by CMS to prevent, deter, discover, detect, investigate,
examine, prosecute, sue with respect to, defend against, correct,
remedy, or otherwise combat fraud, waste, or abuse in such program.
We contemplate disclosing information under this routine use only
in situations in which CMS may enter into a contractual relationship or
grant with a third party to assist in accomplishing CMS functions
relating to the purpose of combating fraud, waste, and abuse.
CMS occasionally contracts out certain of its functions and makes
grants when doing so would contribute to effective and efficient
operations. CMS must be able to give a contractor or grantee whatever
information is necessary for the contractor or grantee to fulfill its
duties. In these situations, safeguards are provided in the contract
prohibiting the contractor or grantee from using or disclosing the
information for any purpose other than that described in the contract
and requiring the contractor or grantee to return or destroy all
information.
4. To another Federal agency or to an instrumentality of any
governmental jurisdiction within or under the control of the United
States (including any State or local governmental agency), that
administers, or that has the authority to investigate potential fraud,
waste, or abuse in, a health benefits program funded in whole or in
part by Federal funds, when disclosure is deemed reasonably necessary
by CMS to prevent, deter, discover, detect, investigate, examine,
prosecute, sue with respect to, defend against, correct, remedy, or
otherwise combat fraud, waste, or abuse in such programs.
Other agencies may require MSIF information for the purpose of
combating fraud, waste, and abuse in such federally-funded programs.
B. Additional Provisions Affecting Routine Use Disclosures
To the extent this system contains Protected Health Information
(PHI) as defined by HHS regulation ``Standards for Privacy of
Individually Identifiable Health Information'' (45 CFR Parts 160 and
164, Subparts A and E) 65 FR 82462 (12-28-00). Disclosures of such PHI
that are otherwise authorized by these routine uses may only be made
if, and as, permitted or required by the ``Standards for Privacy of
Individually Identifiable Health Information.'' (See 45 CFR 164-
512(a)(1)).
[[Page 70406]]
In addition, our policy will be to prohibit release even of data
not directly identifiable, except pursuant to one of the routine uses
or if required by law, if we determine there is a possibility that an
individual can be identified through implicit deduction based on small
cell sizes (instances where the patient population is so small that an
individual could, because of the small size, use this information to
deduce the identity of the beneficiary).
IV. Safeguards
CMS has safeguards in place for authorized users and monitors such
users to ensure against unauthorized use. Personnel having access to
the system have been trained in the Privacy Act and information
security requirements. Employees who maintain records in this system
are instructed not to release data until the intended recipient agrees
to implement appropriate management, operational and technical
safeguards sufficient to protect the confidentiality, integrity and
availability of the information and information systems and to prevent
unauthorized access.
This system will conform to all applicable Federal laws and
regulations and Federal, HHS, and CMS policies and standards as they
relate to information security and data privacy. These laws and
regulations may apply but are not limited to: The Privacy Act of 1974;
the Federal Information Security Management Act of 2002; the Computer
Fraud and Abuse Act of 1986; the Health Insurance Portability and
Accountability Act of 1996; the E-Government Act of 2002, the Clinger-
Cohen Act of 1996; the Medicare Modernization Act of 2003, and the
corresponding implementing regulations. OMB Circular A-130, Management
of Federal Resources, Appendix III, Security of Federal Automated
Information Resources also applies. Federal, HHS, and CMS policies and
standards include but are not limited to: All pertinent National
Institute of Standards and Technology publications; the HHS Information
Systems Program Handbook and the CMS Information Security Handbook.
V. Effects of the Modified System of Records on Individual Rights
CMS proposes to modify this system in accordance with the
principles and requirements of the Privacy Act and will collect, use,
and disseminate information only as prescribed therein. Data in this
system will be subject to the authorized releases in accordance with
the routine uses identified in this system of records.
CMS will take precautionary measures to minimize the risks of
unauthorized access to the records and the potential harm to individual
privacy or other personal or property rights of patients whose data are
maintained in the system. CMS will collect only that information
necessary to perform the system's functions. In addition, CMS will make
disclosure from the proposed system only with consent of the subject
individual, or his/her legal representative, or in accordance with an
applicable exception provision of the Privacy Act. CMS, therefore, does
not anticipate an unfavorable effect on individual privacy as a result
of information relating to individuals.
Dated: November 24, 2006.
John R. Dyer,
Chief Operating Officer, Centers for Medicare & Medicaid Services.
SYSTEM NO. 09-70-0530
SYSTEM NAME:
``Medicare Supplier Identification File (MSIF),'' HHS/CMS/OFM
SECURITY CLASSIFICATION:
Level Three Privacy Act Sensitive Data
SYSTEM LOCATION:
National Supplier Clearing House, Palmetto Government Benefits
Administrators, Interstate 20 at Alpine Road, Columbia, South Carolina
29219.
CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:
MSIF contains information on owners and managing employees of
suppliers of Durable Medicare Equipment, Prosthetics, Orthotics, and
Supplies (DMEPOS), which provide service or supplies to Medicare
beneficiaries.
CATEGORIES OF RECORDS IN THE SYSTEM:
The system contains, but is not limited to: business names and
addresses, owner's name, owner's social security number (SSN), Unique
Physician/Practitioner Identification Number (UPIN), managing
employee's name, employer identification number or other tax reporting
number, and the carrier assigned billing numbers.
AUTHORITY FOR MAINTENANCE OF THE SYSTEM:
Authority for maintenance of the system is given under sections
1124, 1124A, 1126, and 1833(e) of the Social Security Act (Title 42,
United States Code (U.S.C.) Sec. Sec. 1320a-3, 1320a-3a, 1320a-5, and
13951(e)).
PURPOSE(S) OF THE SYSTEM:
The primary purpose of this modified system is to identify supplier
businesses that are eligible to receive Medicare payments for items and
services furnished to Medicare beneficiaries as well as owners,
managing employees, and subcontractors in those suppliers. The
information retrieved from this system of records will also be
disclosed to: (1) support regulatory, reimbursement, and policy
functions performed within the agency or by a contractor, consultant,
or grantee; (2) support litigation involving the agency; and (3) combat
fraud, waste, and abuse in Federally-funded health benefits programs.
ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES
OR USERS AND THE PURPOSES OF SUCH USES:
B. The Privacy Act allows us to disclose information without an
individual's consent if the information is to be used for a purpose
that is compatible with the purpose(s) for which the information was
collected. Any such compatible use of data is known as a ``routine
use.'' The proposed routine uses in this system meet the compatibility
requirement of the Privacy Act. We are proposing to establish the
following routine use disclosures of information maintained in the
system:
1. To agency contractors, or consultants, or to a grantee of a CMS-
administered grant program who have been engaged by the agency to
assist in the accomplishment of a CMS function relating to the purposes
for this system and who need to have access to the records in order to
assist CMS.
2. To the Department of Justice (DOJ), court or adjudicatory body
when:
a. The agency or any component thereof, or
b. Any employee of the agency in his or her official capacity, or
c. Any employee of the agency in his or her individual capacity
where the DOJ has agreed to represent the employee, or
d. The United States Government is a party to litigation or has an
interest in such litigation, and by careful review, CMS determines that
the records are both relevant and necessary to the litigation and that
the use of such records by the DOJ, court or adjudicatory body is
compatible with the purpose for which the agency collected the records.
3. To a CMS contractor (including, but not necessarily limited to
fiscal intermediaries and carriers) that assists in the administration
of a CMS-administered health benefits program, or to a grantee of a
CMS-administered grant program, when disclosure is deemed reasonably
necessary by CMS to prevent, deter, discover, detect,
[[Page 70407]]
investigate, examine, prosecute, sue with respect to, defend against,
correct, remedy, or otherwise combat fraud, waste, or abuse in such
program.
4. To another Federal agency or to an instrumentality of any
governmental jurisdiction within or under the control of the United
States (including any State or local governmental agency), that
administers, or that has the authority to investigate potential fraud,
waste, or abuse in, a health benefits program funded in whole or in
part by Federal funds, when disclosure is deemed reasonably necessary
by CMS to prevent, deter, discover, detect, investigate, examine,
prosecute, sue with respect to, defend against, correct, remedy, or
otherwise combat fraud, waste, or abuse in such programs.
C. Additional Provisions Affecting Routine Use Disclosures:
To the extent this system contains Protected Health Information
(PHI) as defined by HHS regulation ``Standards for Privacy of
Individually Identifiable Health Information'' (45 CFR Parts 160 and
164, Subparts A and E) 65 FR 82462 (12-28-00). Disclosures of such PHI
that are otherwise authorized by these routine uses may only be made
if, and as, permitted or required by the ``Standards for Privacy of
Individually Identifiable Health Information.'' (See 45 CFR 164-
512(a)(1)).
In addition, our policy will be to prohibit release even of data
not directly identifiable, except pursuant to one of the routine uses
or if required by law, if we determine there is a possibility that an
individual can be identified through implicit deduction based on small
cell sizes (instances where the patient population is so small that an
individual could, because of the small size, use this information to
deduce the identity of the beneficiary).
POLICIES AND PRACTICES FOR STORING, RETRIEVING, ACCESSING, RETAINING,
AND DISPOSING OF RECORDS IN THE SYSTEM:
STORAGE:
All records are stored on computer diskette and magnetic storage
media.
RETRIEVABILITY:
Information can be retrieved by the business names and addresses,
owner's name, owner's SSN, UPIN, managing employee's name, employer
identification number or other tax reporting number, and the Medicare
contractor assigned billing numbers.
SAFEGUARDS:
CMS has safeguards in place for authorized users and monitors such
users to ensure against unauthorized use. Personnel having access to
the system have been trained in the Privacy Act and information
security requirements. Employees who maintain records in this system
are instructed not to release data until the intended recipient agrees
to implement appropriate management, operational and technical
safeguards sufficient to protect the confidentiality, integrity and
availability of the information and information systems and to prevent
unauthorized access.
This system will conform to all applicable Federal laws and
regulations and Federal, HHS, and CMS policies and standards as they
relate to information security and data privacy. These laws and
regulations may apply but are not limited to: the Privacy Act of 1974;
the Federal Information Security Management Act of 2002; the Computer
Fraud and Abuse Act of 1986; the Health Insurance Portability and
Accountability Act of 1996; the E-Government Act of 2002, the Clinger-
Cohen Act of 1996; the Medicare Modernization Act of 2003, and the
corresponding implementing regulations. OMB Circular A-130, Management
of Federal Resources, Appendix III, Security of Federal Automated
Information Resources also applies. Federal, HHS, and CMS policies and
standards include but are not limited to: all pertinent National
Institute of Standards and Technology publications; the HHS Information
Systems Program Handbook and the CMS Information Security Handbook.
RETENTION AND DISPOSAL:
Records are maintained by CMS for a period not to exceed 15 years.
All claims-related records are encompassed by the document preservation
order and will be retained until notification is received from DOJ.
SYSTEM MANAGER(S) AND ADDRESS:
Director, Division of Provider/Supplier Enrollment, Program
Integrity Group, Office of Financial Management, CMS, Mail Stop C3-02-
16, 7500 Security Boulevard, Baltimore, Maryland 21244-1850.
NOTIFICATION PROCEDURE:
For purpose of access, the subject individual should write to the
system manager who will require the system name, address, date of
birth, and gender, and for verification purposes, the subject
individual's name (woman's maiden name, if applicable), and SSN.
Furnishing the SSN is voluntary, but it may make searching for a record
easier and prevent delay.
RECORD ACCESS PROCEDURE:
For purpose of access, use the same procedures outlined in
Notification Procedures above. Requestors should also specify the
record contents being sought. (These procedures are in accordance with
department regulation 45 CFR 5b.5(a)(2).)
CONTESTING RECORDS PROCEDURES:
The subject individual should contact the system manager named
above, and reasonably identify the records and specify the information
to be contested. State the corrective action sought and the reasons for
the correction with supporting justification. (These Procedures are in
accordance with Department regulation 45 CFR 5b.7.)
RECORDS SOURCE CATEGORIES:
Sources of information contained in this records system include
data collected from the application which the supplier completes to
obtain Medicare billing numbers. (CMS Form 192--prior to August 1996,
CMS Form 888--April 1996 through May 1997, and CMS Form 855S--after May
1997).
SYSTEMS EXEMPTED FROM CERTAIN PROVISIONS OF THE ACT:
None.
[FR Doc. E6-20409 Filed 12-1-06; 8:45 am]
BILLING CODE 4120-01-P