Medicare agency renamed as prelude to reforms

WASHINGTON (CNN) -- The Health Care Financing Administration, the government agency that oversees Medicare and Medicaid, is changing its name to the Centers for Medicare and Medicaid Services, Secretary of Health and Human Services Tommy Thompson announced Thursday.

The change is part of the first in a series of reforms designed to strengthen services at the $400 billion agency.

"We're making quality service the No. 1 priority in this agency," Thompson said. "These sweeping reforms will strengthen our programs and enable our dedicated employees to better serve Medicare and Medicaid beneficiaries as well as health care providers.

"We're going to encourage innovation, better educate consumers about their options, and be more responsive to the health care needs of Americans," Thompson said.

The Centers for Medicare and Medicaid Services will include three centers:

-- The Center for Beneficiary Choices will focus on the choices Medicare beneficiaries have under the Medicare, Medigap and Medicare + Choice programs. Medicare + Choice provides options such as HMOs that are outside conventional fee-for-service program.

-- The Center for Medicare Management will work with the conventional fee-for-service Medicare.

-- The Center for Medicaid and State Operations will focus on programs administered by the states such as Medicaid and the State Children's Health Insurance Program.

The agency will kick off a national media campaign this fall to educate beneficiaries on the choices they have under Medicare. And it will work toward reforming its relationship with private companies that process and pay Medicare claims.

Thompson said the restructured agency will renew efforts to reach out to patients and providers.

"This is only the beginning -- more changes are on the way," he said. "We're going to keep fine-tuning this department so Americans are receiving the highest quality health care possible. Our commitment to excellence is unwavering."

Last year there were 70 million Medicare, Medicaid and SCHIP beneficiaries.

Although the new name is effective immediately, it will be phased in on letterheads, signs and other places where HCFA is listed.