Title 42, The Public Health and WelfareRelease 119-110

§1395b–9 Provisions Relating to Administration

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

Last updated Sep 23, 2026|Official source

Summary

Create a center inside the Centers for Medicare & Medicaid Services to run Medicare Advantage (Part C) and the prescription drug program (Part D). The center must have a director who reports to the CMS Administrator. The center must handle Parts C and D, give required notices and information, and do other tasks the Secretary assigns. The center had to be up and running by January 1, 2008. The Secretary may hire management staff for CMS, including people with private-sector experience negotiating with health plans. Hired staff must show strong skill in areas like health care contract review and negotiation, benefit plan design, actuarial work, contract compliance, consumer education, or other special management skills. Pay is set based on skill, experience, and performance but cannot be higher than the top basic pay rate for the Senior Executive Service under 5 U.S.C. 5382(b). The Secretary must appoint a Medicare Beneficiary Ombudsman to take complaints from Medicare Part A and B people, help them collect information and appeal decisions, help with MA plan disenrollment problems, assist with income-related premium issues, work with counseling programs, and send yearly reports to Congress and the Secretary. The Ombudsman must not push for higher payments or new coverage, but may point out problems. Within 12 months after December 13, 2016, CMS must also have a pharmaceutical and technology ombudsman to handle coverage, coding, or payment complaints from makers of drugs, devices, diagnostics, or biotech products; that ombudsman is subject to the same restriction about advocating payment or coverage increases. Finally, $2,000,000 must be transferred each fiscal year from 2021 through 2030 from the two Medicare trust funds to the CMS Program Management Account to help carry out beneficiary enrollment simplification; these amounts remain available until spent.

Full Legal Text

Title 42, §1395b–9

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

(a)Coordinated administration of medicare prescription drug and Medicare Advantage programs
(1)In general
There is within the Centers for Medicare & Medicaid Services a center to carry out the duties described in paragraph (3).
(2)Director (3) Duties
Such center shall be headed by a director who shall report directly to the Administrator of the Centers for Medicare & Medicaid Services.
(4)Deadline
The Secretary shall ensure that the center is carrying out the duties described in paragraph (3) by not later than January 1, 2008.
(b)Employment of management staff
(1)In general
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)Eligibility
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)Rates of payment
(A)Performance-related pay
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)Limitation
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)Medicare Beneficiary Ombudsman
(1)In general
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)Duties
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; 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.
The Ombudsman shall not serve as an advocate for any increases in payments or new coverage of services, but may identify issues and problems in payment or coverage policies.
(3)Working with health insurance counseling programs
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)Pharmaceutical and technology ombudsman
(1)In general
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)Application
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)Funding for implementation of beneficiary enrollment simplification
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 42, The Public Health and Welfare

Last Updated

Sep 23, 2026

Release point: 119-110