Executive Summary.

V-1

Part I - Introduction: Agency Context for Performance Measurement.
Part II - Program Planning and Assessment.

V-9

Part III - Appendices......

......V-164

1/ Includes the accrued costs of employee retirement and annuitant health benefits.

2 Corresponding benefit outlays total $408.7 billion.

3/ Includes $587.2 million in the Federal Administration portion of CMS's Program Management
appropriation, plus user fees from both the sale of data and HMO activities. Includes
$30,416,000 for the accrued costs of employee retirement and annuitant health benefits.

4/ Does not include 80 FTEs which are funded solely from user fees.

Discretionary Budget Summary (Continued)

1/ FY 2001 enacted column reflects final (net) appropriation after all rescissions, transfers, and reprogrammings.

2/ FY 2002 current estimate column reflects final (net) appropriation after all rescissions, transfers, and reprogrammings.

3/ The FY 2001 and FY 2002 columns include $52.0 million for the National Medicare Education Program. In addition, the FY 2002 appropriation and current estimate columns include $12.5 million for the SHIP grants.

4/ Fiscal years 2001 and 2002 display the comparability adjustments relating to the consolidation of CMS's Office of Public Affairs and Office of Legislation under DHHS. The comparability adjustments are as follows: FY 2001: -$5,146,000; FY 2002: -$5,523,000.

5/ Fiscal years 2001 and 2002 display the comparability adjustments relating to CMS's accrued employee retirement and annuitant health benefits. The comparability adjustments are as follows: FY 2001: $28,263,000; FY 2002: $29,251,000.

6/ In addition, in FY 2002 CMS has available to obligate the remaining $20.5 million of no-year funds for the transition to a single Part A and Part B processing system, and managed care redesign activities.

7! This line reflects the addition of the Administration's proposal to include the accrued costs of retirement and annuitant health benefits.

8/ The Balanced Budget Refinement Act of 1999 limited Medicare Choice user fee collections to an amount based on the ratio of Medicare managed care enrollees to the total Medicare population, effective FY 2001. In FY 2002, the estimated enrollment has decreased since the submission of the President's budget, limiting user fee collections to $16.0 million. The FY 2002 conference report shows $17.0 million for the user fee.

9/ Fiscal years 2001 and 2002 display the comparability adjustments relating to CMS's accrued employee retirement and annuitant health benefits. The accrued cost adjustments are as follows: FY 2001: $380,000; FY 2002: $405,000; FY 2003: $422,000.

10/ If Congress enacts the Administration's program management user fee proposals, CMS's FY 2003 appropriation may be reduced by an equal amount, so that CMS's overall program level will not be affected.