HHS secretary announces changes to HCFA

WASHINGTON (CNN) -- The Health Care Financing Administration (HCFA), the government agency that oversees Medicare and Medicaid, will change its name to the Centers for Medicare and Medicaid Services, Health and Human Services Secretary 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 number one 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."

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 for options outside the traditional fee-for-service program, such as HMOs.

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

-- The Center for Medicaid and State Operations will focus on programs administered by states, including Medicaid and the State Children's Health Insurance Program (SCHIP). A person will be assigned to work directly with each state.

The agency will be kicking off a national media campaign this fall to educate beneficiaries and help them better understand the choices they have under Medicare. And it will work towards reforming its relationship with private companies that process and pay fee-for-service Medicare claims.

Thompson said the restructured agency would 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.

While the new name is effective immediately, it will be phased in over time on letterhead, signs, and other places where HCFA is currently listed.