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The Medicare program is administered by the Centers for Medicare and Medicaid Services (CMS). This agency, part of the Department of Health and Human Services, is responsible for overseeing the program's operations, including the implementation of policies and regulations. CMS manages all aspects of Medicare, including enrollment, benefit design, and the payment of claims to healthcare providers.

The importance of understanding that CMS administers Medicare lies in recognizing the agency's role in ensuring the program is implemented effectively and meets the needs of beneficiaries. CMS also plays a critical role in maintaining compliance with federal regulations and managing partnerships with various healthcare providers and insurers involved in Medicare. This centralized administration is essential for streamlining services and providing a cohesive experience for those enrolled in Medicare.