This article provides an overview of the Medicare Transaction System (
MTS), a Health Care Financing Administration (HCFA)-wide initiative to
be implemented starting in 1997 which will develop a national, standa
rd, integrated, government-owned, contractor-operated Medicare claims
processing system that will meet the challenges confronting Medicare o
ver the next 2 decades. The authors discuss MTS goals and objectives,
major features, how it will work, standardization efforts being undert
aken in support of the initiative, contracting efforts involved and pr
oject status.