Bid Pricing Tool (BPT) for Medicare Advantage (MA) Plans and Prescription Drug Plans (PDP)

Forms and Documents

Document Name	Status
CMS-1042 Attachment C, CY2008 BPT Changes 2-2-07.doc Supplementary Document	0000-00-00
CMS010142 BPT cover sheet for PRA package.doc Supplementary Document	0000-00-00
CMS-10142 Attachment B, supporting statement.DOC Supporting Statement A	0000-00-00

IC Document Collections

IC ID	Document Title	Status
37926	Bid Pricing Tool (BPT) for Medicare Advantage (MA) Plans and Prescription Drug Plans (PDP): CY 2008 Instruction	Modified

ICR Details

OMB Control No: 0938-0944	ICR Reference No: 200703-0938-001
Status: Historical Active	Previous ICR Reference No: 200603-0938-014
Agency/Subagency: HHS/CMS	Agency Tracking No:
Title: Bid Pricing Tool (BPT) for Medicare Advantage (MA) Plans and Prescription Drug Plans (PDP)
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Emergency	Approval Requested By: 03/21/2007
OIRA Conclusion Action: Approved without change	Conclusion Date: 04/17/2007
	Date Received in OIRA: 03/01/2007
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	10/31/2007	6 Months From Approved	03/31/2009
Responses	6,050	0	4,830
Time Burden (Hours)	42,350	0	36,190
Cost Burden (Dollars)	0	0	0

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Abstract: Under the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA), and implementing regulations at 42 CFR, Medicare Advantage organizations (MAO) and Prescription Drug Plans (PDP) are required to submit an actuarial pricing bid for each plan offered to Medicare beneficiaries for approval by the Centers for Medicare and Medicaid Services. MAOs and PDPs use the Bid Pricing Tool software to develop their actuarial pricing bid. The information provided in the BPT is the basis for the plan's enrollee premiums and CMS payments for each contract year.

Emergency Justfication: Justification for Emergency PRA Clearance of Bid Pricing Tool After the CY2007 bid submission and review season drew to a close in September 2006, CMS received industry feedback and suggestions for improvements that may improve the usability of the BPT. Since CMS strives to improve the data collection tools to minimize the filing burden on the plans and to maximize the output of the tools for CMS use, CMS hosted an online comment session to solicit feedback from industry. CMS hosted the session during non-peak months for the bidders to ensure that industry users had an opportunity to provide comments and suggest enhancements for the following year. CMS gave careful consideration to the feedback that was submitted, and incorporated many of the suggestions. For example, the BPT was changed to allow more flexibility for users in printing various BPT worksheets. There were several potential policy changes and MA/PD program changes that would be effective in CY2008 that needed consideration by CMS for their impact on the BPT. For example, the Tax Relief and Health Care Act of 2006 was enacted in December 2006 that necessitated a change to the BPT regarding the regional PPO stabilization fund. Given the life cycle of the BPT illustrated above, CMS does not have sufficient time to complete the normal PRA clearance process and ensure that organizations have sufficient time to complete and submit their BPTs by the statutory deadline of June 4, 2007. The normal PRA clearance process would result in violating this statutory deadline which would prevent MA and PDP organizations from providing benefits to millions of Medicare beneficiaries. This could result in public harm, as the Medicare Advantage and Prescription Drug Programs depend on the annual bidding process and timeline described in this document. If the bidding process/timeline were delayed for normal PRA clearance, these programs would not be operational for millions of Medicare beneficiaries. Due to the nature of the annual bidding cycle, the BPT requires the emergency PRA clearance process.

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Authorizing Statute(s): None

Citations for New Statutory Requirements: None

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	72 FR 6247	02/09/2007
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Bid Pricing Tool (BPT) for Medicare Advantage (MA) Plans and Prescription Drug Plans (PDP): CY 2008

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	6,050	4,830	0	0	1,220	0
Annual Time Burden (Hours)	42,350	36,190	0	0	6,160	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement:

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Annual Cost to Federal Government: $415,392

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? Uncollected

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? Uncollected

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? Uncollected

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 03/01/2007

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