Medicare Computer Systems Get Better Grades in New Report Washington Cramming for finals, the agency that oversees Medicare raised its grade from an "F" to a "C+" in dealing with the year 2000 computer problem, according to the latest report issued by the White House's chief authority on Y2K.

Rep. Steve Horn, R-Calif., upgraded the Health and Human Services Department, but it fell far short of the "A" grades received by 11 of the 24 agencies Horn follows.

Meanwhile, the chief of the Health Care Financing Administration, which handles claims processing for Medicare, said all 25 of its mission-critical systems and many of the systems run by claims-processing contractors are Y2K ready.

"We agree there is more work to be done," said Nancy-Ann Min DeParle, HCFA administrator. "Beneficiaries are depending on Medicare to cross the year 2000 finish line on time, and we intend to do that."

To avoid breakdowns in public services on January 1, 2000, President Clinton has given federal agencies until March 31 to make computer systems compliant. Horn estimates about 90 percent of federal computer systems will meet that deadline. -K.G.

Providers Lose Right to Appeal Previous-Year Payment Decisions Washington Health care providers can no longer appeal a refusal to reopen a previous year's payment decision, the Supreme Court ruled in a Tennessee case. The justices ruled unanimously that health care providers can't appeal reimbursement decisions made by government-designated intermediaries, such as the Durable Medical Equipment Regional Carriers.

Providers can appeal only the original decision made by insurance companies affiliated with the Medicare program. The ruling will give home medical equipment companies, physicians, hospitals and other health care providers less time to gather evidence for their cases for higher payment, since an original decision must be appealed within 180 days to the Provider Reimbursement Review Board. That board's decision can be appealed to a federal court within 60 days.

Providers have three years to ask insurance companies to reopen a case, but if the intermediary refuses, federal rules say that decision cannot be appealed. The case involved Your Home Visiting Services, a Knoxville, Tenn.-based home health agency, which said it recently discovered new evidence indicating that Blue Cross and Blue Shield of South Carolina should have reopened its review of a 1989 reimbursement decision.