Medicare and Medicaid need new organizational structures. At the start of a
new administration, the Health Care Financing Administration (HCFA) should
be replaced by separate agencies to administer Medicare (a Federal Health
Programs Administration) and Medicaid plus other state grant programs (a St
ate Health Programs Administration). A new Medicare management agency shoul
d have different centers for beneficiary services, provider payments, healt
h plans, prescription drugs, and program development/special populations. T
he future Department of Health and Human Services (HHS) should have an assi
stant secretary for prevention and health care quality, and a new Congress
should establish a Joint Health Committee.