Medicare Administrator McClellan Resigns

Baltimore

CMS Administrator Mark McClellan, who has overseen Medicare’s biggest expansion since the program’s inception 40 years ago, announced that he will resign from his post Oct. 14.

Taking the helm in 2004 after former Administrator Tom Scully left the position, the 43-year-old physician and economist has supervised the agency during rollout of Medicare’s Part D prescription drug benefit — and as planning moves toward DME competitive bidding in 2007. He also has guided CMS during calls for Medicaid reform and, more recently, in implementing controversial provisions in the Deficit Reduction Act, including its 36-month cap on home oxygen rental.

McClellan said his decision to resign was not related to a possible takeover by Democrats in the House or Senate after the November elections, which could result in oversight hearings on the new drug benefit. The drug program got off to a rough start, with beneficiaries complaining about problems obtaining their medications. However, McClellan said most beneficiaries are now satisfied with the program and costs are lower than originally projected.

Before his appointment to CMS, McClellan served as commissioner of the Food and Drug Administration. He has also served as a senior health policy aide to President Bush and as a member of the White House Council of Economic Advisors. Previously, he worked at Stanford University as an associate professor and director of the Program on Health Outcomes Research, and was an attending physician for internal medicine at Stanford Health Services.