Title 42The Public Health and WelfareRelease 119-73

§1395b–9 Provisions relating to administration

Title 42 › Chapter CHAPTER 7— - SOCIAL SECURITY › Subchapter SUBCHAPTER XVIII— - HEALTH INSURANCE FOR AGED AND DISABLED › § 1395b–9

Last updated Apr 6, 2026|Official source

Summary

Creates a center inside the Centers for Medicare & Medicaid Services (CMS) to run Medicare parts C and D. The center must be led by a director who reports to the CMS Administrator. The center must manage parts C and D, give required notices and information, and do any other tasks the Secretary assigns. The Secretary must make sure the center is doing these jobs by January 1, 2008. The Secretary can hire management staff, including people with private-sector experience in negotiating with health plans. New hires must show top skill in at least one area such as health care contracts, benefit plan design, actuarial work, contract compliance, consumer education, or other specialized areas the Secretary sets. Pay is set by the Secretary but cannot be higher than the top rate for the Senior Executive Service under 5 U.S.C. 5382(b). The Secretary must also appoint a Medicare Beneficiary Ombudsman inside HHS to help people with Medicare. The Ombudsman must take complaints and information requests from people in parts A or B, help them gather information and appeal decisions, help with problems from leaving a Medicare Advantage plan, help with income-related premium adjustments, and send yearly reports to Congress and the Secretary with activities and recommendations. The Ombudsman should work with state health insurance counseling programs. By December 13, 2017, the Secretary must also provide a pharmaceutical and technology ombudsman in CMS to handle complaints from manufacturers about coverage, coding, or payment; that ombudsman follows the same assistance rules. For fiscal years 2021 through 2030, the Secretary must transfer $2,000,000 each year (from the Hospital Insurance and Supplementary Medical Insurance Trust Funds in a mix the Secretary decides) to the CMS Program Management Account, available until spent.

Full Legal Text

Title 42, §1395b–9

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)There is within the Centers for Medicare & Medicaid Services a center to carry out the duties described in paragraph (3).
(2)Such center shall be headed by a director who shall report directly to the Administrator of the Centers for Medicare & Medicaid Services.
(3)The duties described in this paragraph are the following:
(A)The administration of parts C and D.
(B)The provision of notice and information under section 1395b–2 of this title.
(C)Such other duties as the Secretary may specify.
(4)The Secretary shall ensure that the center is carrying out the duties described in paragraph (3) by not later than January 1, 2008.
(b)(1)The Secretary may employ, within the Centers for Medicare & Medicaid Services, such individuals as management staff as the Secretary determines to be appropriate. With respect to the administration of parts C and D, such individuals shall include individuals with private sector expertise in negotiations with health benefits plans.
(2)To be eligible for employment under paragraph (1) an individual shall be required to have demonstrated, by their education and experience (either in the public or private sector), superior expertise in at least one of the following areas:
(A)The review, negotiation, and administration of health care contracts.
(B)The design of health care benefit plans.
(C)Actuarial sciences.
(D)Compliance with health plan contracts.
(E)Consumer education and decision making.
(F)Any other area specified by the Secretary that requires specialized management or other expertise.
(3)(A)Subject to subparagraph (B), the Secretary shall establish the rate of pay for an individual employed under paragraph (1). Such rate shall take into account expertise, experience, and performance.
(B)In no case may the rate of compensation determined under subparagraph (A) exceed the highest rate of basic pay for the Senior Executive Service under section 5382(b) of title 5.
(c)(1)The Secretary shall appoint within the Department of Health and Human Services a Medicare Beneficiary Ombudsman who shall have expertise and experience in the fields of health care and education of (and assistance to) individuals entitled to benefits under this subchapter.
(2)The Medicare Beneficiary Ombudsman shall—
(A)receive complaints, grievances, and requests for information submitted by individuals entitled to benefits under part A or enrolled under part B, or both, with respect to any aspect of the medicare program;
(B)provide assistance with respect to complaints, grievances, and requests referred to in subparagraph (A), including—
(i)assistance in collecting relevant information for such individuals, to seek an appeal of a decision or determination made by a fiscal intermediary, carrier, MA organization, or the Secretary;
(ii)assistance to such individuals with any problems arising from disenrollment from an MA plan under part C; and
(iii)assistance to such individuals in presenting information under section 1395r(i)(4)(C) of this title (relating to income-related premium adjustment; 11 So in original. A closing parenthesis probably should precede the semicolon. and
(C)submit annual reports to Congress and the Secretary that describe the activities of the Office and that include such recommendations for improvement in the administration of this subchapter as the Ombudsman determines appropriate.
(3)To the extent possible, the Ombudsman shall work with health insurance counseling programs (receiving funding under section 1395b–4 of this title) to facilitate the provision of information to individuals entitled to benefits under part A or enrolled under part B, or both regarding MA plans and changes to those plans. Nothing in this paragraph shall preclude further collaboration between the Ombudsman and such programs.
(d)(1)Not later than 12 months after December 13, 2016, the Secretary shall provide for a pharmaceutical and technology ombudsman within the Centers for Medicare & Medicaid Services who shall receive and respond to complaints, grievances, and requests that—
(A)are from entities that manufacture pharmaceutical, biotechnology, medical device, or diagnostic products that are covered or for which coverage is being sought under this subchapter; and
(B)are with respect to coverage, coding, or payment under this subchapter for such products.
(2)The second sentence of subsection (c)(2) shall apply to the ombudsman under subparagraph (A) in the same manner as such sentence applies to the Medicare Beneficiary Ombudsman under subsection (c).
(e)For purposes of carrying out the provisions of and the amendments made by section 120 of division CC of the Consolidated Appropriations Act, 2021, the Secretary shall provide for the transfer, from the Federal Hospital Insurance Trust Fund under section 1395i of this title and the Federal Supplementary Medical Insurance Trust Fund under section 1395t of this title (in such proportion as the Secretary determines appropriate), to the Centers for Medicare & Medicaid Services Program Management Account, of $2,000,000 for each of fiscal years 2021 through 2030, to remain available until expended.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 120 of division CC of the Consolidated Appropriations Act, 2021, referred to in subsec. (e), is section 120 of div. CC of Pub. L. 116–260, which amended this section and section 1395i–2a, 1395p, 1395q, and 1395r of this title.

Amendments

2020—Subsec. (e). Pub. L. 116–260 added subsec. (e). 2016—Subsec. (d). Pub. L. 114–255 added subsec. (d). 2003—Subsec. (b). Pub. L. 108–173, § 900(b), added subsec. (b). Subsec. (c). Pub. L. 108–173, § 923(a), added subsec. (c).

Statutory Notes and Related Subsidiaries

Deadline for Appointment Pub. L. 108–173, title IX, § 923(b), Dec. 8, 2003, 117 Stat. 2394, provided that: “By not later than 1 year after the date of the enactment of this Act [Dec. 8, 2003], the Secretary [of Health and Human Services] shall appoint the Medicare Beneficiary Ombudsman under section 1808(c) of the Social Security Act [42 U.S.C. 1395b–9(c)], as added by subsection (a).”

Reference

Citations & Metadata

Citation

42 U.S.C. § 1395b–9

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73