History
President Lyndon B. Johnson signed the Social Security Act on July 30, 1965, establishing both Medicare and Medicaid. The Social Security Administration (SSA) became responsible for the administration of Medicare and the Social and Rehabilitation Service (SRS) became responsible for the administration of Medicaid. Both agencies were organized under what was then known as the Department of Health, Education, and Welfare (HEW).
In 1977, the Health Care Financing Administration (HCFA) was established under HEW. HCFA became responsible for the coordination of Medicare and Medicaid. The responsibility for enrolling beneficiaries into Medicare and processing premium payments remained with SSA.
The CMS developed and uses several systems to classify Medicare cases. Hospital cases are classified using the Diagnosis-Related Group (DRG); outpatient cases are classified using the Ambulatory Patient Group (APG). These systems are used to determine how much Medicare pays the hospital or provider for each service or product.
Read more about this topic: Centers For Medicare And Medicaid Services
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