Case Study
Ensuring accurate claim processing for Medicare Parts A and B
Modernizing a legacy mainframe system

The client
Centers for Medicare & Medicaid Services
Data Systems Architecture Modernization (DSAM)
Challenge
In 2019, the Centers for Medicare & Medicaid Services (CMS) needed to modernize the Medicare Quality Release/Medicare Quality Assurance (MQR/MQA) applications. These mainframe applications were complex to update, relied on diminishing institutional knowledge, and could not leverage modern tools and solutions due to the age of the technologies.
At risk was the ability to process 20 to 30 million Medicare Parts A and B claims weekly for providers of essential healthcare services across the United States and its territories. These claims are submitted by Medicare Administrative Contractors (MACs), private companies representing specific geographical regions, with contracts from CMS to administer the Medicare program for the government.
CMS was looking for a reliable partner to design a cloud-based drop-in replacement for legacy processes running on the mainframe in the Baltimore (Maryland) Data Center.
Our approach
In June 2020, CMS awarded the contract to Flexion, and we began our work to design the Data Systems Architecture Modernization (DSAM) system to provide quality assurance and statistical data analysis of Part A and B Medicare claims healthcare data transmitted from the Common Working File (CWF).
The intention was to process Medicare Part A and B claims for downstream internal CMS business units, including:
- National Claims History (NCH),
- Integrated Data Repository (IDR),
- Chronic Conditions Data Warehouse (CCW), and more.
We also considered the needs of analysts who require information for reporting purposes in our design specifications.
The team needed to design a modernized system that could:
- Receive claims data in Extended Binary Coded Decimal Interchange Code (EBCDIC) format.
- Perform quality validations.
- Provide the data for consumption by downstream systems daily and weekly to meet the existing Service Level Agreement (SLA).
- Match existing output to downstream systems so they did not have to change coding.
The Flexion team utilized several Amazon Web Service (AWS) tools, including AWS Batch to scale parsing and building of the large data field, AWS Lambda to scale parallel processing of claims data, Amazon Elastic Compute Cloud (Amazon EC2) to connect with the external data center and transfer files, and AWS Elastic File System for data storage between Amazon EC2 and AWS Lambda. Claims data was stored in AWS Simple Storage Service (AWS S3) through various stages, and AWS Athena was leveraged for metadata and other data querying needs.
Technology stack
Outcomes
Focusing on incremental vertical slices of functionality, the team designed a modern cloud infrastructure and tools with the flexibility to leverage future AWS offerings.
The outcome of this work resulted in the ability to:
- Ingest claims data sent from the CWF in EBCDIC from mainframe systems in the CMS Baltimore Data Center.
- Translate the claims data to JavaScript Object Notation (JSON) to provide a flexible, modern data format for analysis and transformation.
- Perform quality checks and validations on the claims data.
- Store valuable claims metadata utilizing AWS Athena to provide directional data points to solve business problems, such as identifying the prevalence of fraud and claim accuracy and informing stakeholders of Medicare claim quality, anomalies, and system performance.
- Transform the JSON data into a format matching the downstream consuming systems received from the legacy system.
- Deliver quality-checked Medicare claims for long-term storage and access through NCH and IDR and support daily and weekly satellite systems that meet the individual systems’ SLA.
The team delivered a Medicare Part A and B claims processing and quality assurance application with minimal disruption to downstream systems by matching existing claim output data, all on a platform allowing system modification and evolution using modern technologies. Flexion delivered the system to production in October 2022 and supported it in production until September 2023.
Ready to change the way you’re doing business?
Contact us to talk about how Flexion can help your organization re-imagine and re-implement your legacy application.
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