Watchdog report faults Medicare agency's contract management
The contracts, which are no longer active, were for strategic communications services, such as public engagement and interacting with the media. But the inspector general said CMS used them as personal services contracts and exerted a level of control over the contractors' work that exceeded what's allowed under that type of a federal award.
Verma sharply disputed the inspector general's findings. In a response that accompanies the report, she said CMS has “deep concerns" with the conclusions, which “are based on unsubstantiated assumptions and incomplete analysis." She also said the report relies on mischaracterizations of contractor tasks and duties and misrepresents federal acquisition rules.
Verma, a protege of Vice President
As head of CMS, Verma has enjoyed strong support from the
The
A government official familiar with the matter confirmed that Smith is
Barlow joined the public relations firm Nahigian Strategies in
Federal acquisition regulation prohibits contracts from being used for the performance of inherently governmental functions, but the report cited multiple examples where Barlow did that.
Barlow regularly attended meetings with Verma and her staff at CMS and often relayed information and directions to agency employees that the administrator had directly communicated to him, the report said. He was also authorized to “clear social and media responses” when the agency's deputy administrator and deputy chief of staff were away.
Two examples from 2017 point to Verma's reliance on Barlow. In one, she said a speech needed “a lot of work” and told him to “get with the technical people asap” so a draft would be ready at the end of the day. In another, she emailed him and two other senior CMS officials about scheduling important agency business.
“This type of responsibility granted to ‘Brian Smith' — that was equal in nature to the same responsibility provided to a CMS senior leader — suggested that 'Brian Smith' had the authority to make CMS management decisions and thus was performing an inherently governmental function,” the inspector general's report said.
Verma said in her response that there's insufficient evidence to back up the report's assertion a subcontractor was performing inherently governmental work. It's disingenuous, she added, to say individual contractors were directing agency officials “when all that is shown is typical collaboration among team members.”
HHS spokesman
Verma's agency regulates the health care system and sets payment policies for Medicare, so it’s at the crossroads of many issues in the coronavirus pandemic, from the high death toll in nursing homes to the expansion of telehealth services to help patients avoid exposure to the virus. She has been a featured participant at
Verma’s expansion of Medicare telehealth services may well be her most lasting accomplishment. Lawmakers of both parties want to see a broader role for telemedicine in the program after the COVID-19 pandemic. Early on in the outbreak, Verma loosened Medicare payment rules to allow greater access to telehealth as a way to keep seniors from risking exposure by having to go to the doctor’s office.
Her biggest reversal came on Medicaid work requirements. The Trump administration had opened the way for states to impose work requirements on “able-bodied” low-income adults as a condition of keeping their health insurance. But courts slapped down the administration’s move, ruling that work requirements could cause people to lose coverage, and that violated Medicaid’s core purpose.
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