HR 5324 IH
106th CONGRESS
2d Session
H. R. 5324
To amend the Social Security Act to make corrections and refinements
in the Medicare, Medicaid, and SCHIP health insurance programs, as revised by
the Balanced Budget Act of 1997 and the Medicare, Medicaid, and SCHIP Balanced
Budget Refinement Act of 1999, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
September 27, 2000
Mr. MARKEY (for himself, Mr. FRANK of Massachusetts, Mr. MOAKLEY, Mr. NEAL of
Massachusetts, Mr. MEEHAN, Mr. OLVER, Mr. TIERNEY, Mr. DELAHUNT, Mr. MCGOVERN,
Mr. CAPUANO, Ms. MILLENDER-MCDONALD, Mr. DOYLE, Mr. BLUMENAUER, Mr. HILLIARD,
Mr. ABERCROMBIE, Mr. MASCARA, Mr. PAYNE, Mr. ROMERO-BARCELO, Ms. LEE, Mr.
CONYERS, Mr. SANDERS, Mr. CLEMENT, Ms. MCKINNEY, Mr. BLAGOJEVICH, Mr. BARCIA,
Mr. DAVIS of Illinois, Mr. HINOJOSA, Mrs. MEEK of Florida, Mr. SANDLIN, Ms.
BROWN of Florida, Ms. KILPATRICK, Mr. PICKETT, Ms. WATERS, Mr. REYES, Mrs. JONES
of Ohio, Mr. GREEN of Texas, Mr. BERMAN, Mr. SERRANO, and Mr. MCNULTY)
introduced the following bill; which was referred to the Committee on Commerce,
and in addition to the Committees on Ways and Means, Rules, and Education and
the Workforce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdiction
of the committee concerned
A BILL
To amend the Social Security Act to make corrections and refinements
in the Medicare, Medicaid, and SCHIP health insurance programs, as revised by
the Balanced Budget Act of 1997 and the Medicare, Medicaid, and SCHIP Balanced
Budget Refinement Act of 1999, and for other purposes.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; AMENDMENTS TO SOCIAL SECURITY ACT; REFERENCES TO
OTHER ACTS; TABLE OF CONTENTS.
(a) SHORT TITLE- This Act may be cited as the `Medicare, Medicaid, and
SCHIP Balanced Budget Refinement Act of 2000'.
(b) AMENDMENTS TO SOCIAL SECURITY ACT- Except as otherwise specifically
provided, whenever in this Act an amendment is expressed in terms of an
amendment to or repeal of a section or other provision, the reference shall be
considered to be made to that section or other provision of the Social
Security Act.
(c) REFERENCES TO OTHER ACTS- In this Act:
(1) THE BALANCED BUDGET ACT OF 1997- The term `BBA' means the Balanced
Budget Act of 1997 (Public Law 105-33; 111 Stat. 251).
(2) THE MEDICARE, MEDICAID, AND SCHIP BALANCED BUDGET REFINEMENT ACT OF
1999- The term `BBRA' means the Medicare, Medicaid, and SCHIP Balanced
Budget Refinement Act of 1999 (113 Stat. 1501A-321), as enacted into law by
section 1000(a)(6) of Public Law 106-113.
(d) TABLE OF CONTENTS- The table of contents of this Act is as follows:
Sec. 1. Short title; amendments to Social Security Act; references to
other Acts; table of contents.
TITLE I--PROVISIONS RELATING TO PART A
Subtitle A--Skilled Nursing Facilities
Sec. 101. Eliminating reduction in skilled nursing facility (SNF) market
basket update.
Sec. 102. Revision of BBRA increase for skilled nursing facilities in
fiscal years 2001 and 2002.
Sec. 103. MedPAC study on payment updates for skilled nursing
facilities; authority of Secretary to make adjustments.
Subtitle B--PPS Hospitals
Sec. 111. Revision of reduction of indirect graduate medical education
payments.
Sec. 112. Eliminating reduction in PPS hospital payment update.
Sec. 113. Eliminating reduction in disproportionate share hospital (DSH)
payments.
Sec. 114. Equalizing the threshold and updating payment formulas for
disproportionate share hospitals.
Sec. 115. Care for low-income patients.
Sec. 116. Modification of payment rate for Puerto Rico hospitals.
Sec. 117. MedPAC study on hospital area wage indexes.
Subtitle C--PPS Exempt Hospitals
Sec. 121. Treatment of certain cancer hospitals.
Sec. 122. Payment adjustment for inpatient services in rehabilitation
hospitals.
Subtitle D--Hospice Care
Sec. 131. Revision in payments for hospice care.
Subtitle E--Other Provisions
Sec. 141. Hospitals required to comply with bloodborne pathogens
standard.
Sec. 142. Informatics and data systems grant program.
Sec. 143. Relief from medicare part A late enrollment penalty for group
buy-in for State and local retirees.
Subtitle F--Transitional Provisions
Sec. 151. Reclassification of certain counties and areas for purposes of
reimbursement under the medicare program.
Sec. 152. Calculation and application of wage index floor for a certain
area.
Sec. 153. Reclassification of a certain county for purposes of
reimbursement under the medicare program.
TITLE II--PROVISIONS RELATING TO PART B
Subtitle A--Hospital Outpatient Services
Sec. 201. Reduction of effective HOPD coinsurance rate to 20 percent by
2014.
Sec. 202. Application of transitional corridor to certain hospitals that
did not submit a 1996 cost report.
Sec. 203. Permanent guarantee of pre-BBA payment levels for outpatient
services furnished by children's hospitals.
Subtitle B--Provisions Relating to Physicians
Sec. 211. Loan deferment for residents.
Sec. 212. GAO studies and reports on medicare payments.
Sec. 213. MedPAC study on the resource-based practice expense
system.
Subtitle C--Ambulance Services
Sec. 221. Election to forego phase-in of fee schedule for ambulance
services.
Sec. 222. Prudent layperson standard for emergency ambulance
services.
Sec. 223. Elimination of reduction in inflation adjustments for
ambulance services.
Sec. 224. Study and report on the costs of rural ambulance
services.
Sec. 225. Interim payments for rural ground ambulance services until
regulation implemented.
Sec. 226. GAO study and report on the costs of emergency and medical
transportation services.
Subtitle D--Preventive Services
Sec. 231. Elimination of deductibles and coinsurance for preventive
benefits.
Sec. 232. Counseling for cessation of tobacco use.
Sec. 233. Coverage of glaucoma detection tests.
Sec. 234. Medical nutrition therapy services for beneficiaries with
diabetes, a cardiovascular disease, or a renal disease.
Sec. 235. Studies on preventive interventions in primary care for older
Americans.
Sec. 236. Institute of Medicine 5-year medicare prevention benefit study
and report.
Sec. 237. Fast-track consideration of prevention benefit
legislation.
Subtitle E--Other Services
Sec. 241. Revision of moratorium in caps for therapy services.
Sec. 242. Revision of coverage of immunosuppressive drugs.
Sec. 243. State accreditation of diabetes self-management training
programs.
Sec. 244. Elimination of reduction in payment amounts for durable
medical equipment and oxygen and oxygen equipment.
Sec. 245. Standards regarding payment for certain orthotics and
prosthetics.
Sec. 246. National limitation amount equal to 100 percent of national
median for new pap smear technologies and other new clinical laboratory test
technologies.
Sec. 247. Increased medicare payments for certified nurse-midwife
services.
Sec. 248. Payment for administration of drugs.
Sec. 249. MedPAC study on in-home infusion therapy nursing
services.
Sec. 250. Coverage of vision rehabilitation services.
Sec. 251. Limiting medicare late enrollment penalty to 10 percent and
twice the period of no enrollment.
TITLE III--PROVISIONS RELATING TO PARTS A AND B
Subtitle A--Home Health Services
Sec. 301. Elimination of 15 percent reduction in payment rates under the
prospective payment system for home health services.
Sec. 302. Additional payments for outliers.
Sec. 303. Additional payments under the prospective payment system for
services furnished in rural areas and security services.
Sec. 304. Exclusion of certain nonroutine medical supplies under the PPS
for home health services.
Sec. 305. Clarification of the homebound definition for the home health
benefit.
Sec. 306. Standards for home health branch offices.
Sec. 307. Treatment of home health services provided in certain
counties.
Sec. 308. Rule of construction relating to telehomehealth
services.
Subtitle B--Direct Graduate Medical Education
Sec. 311. Not counting certain geriatric residents against graduate
medical education limitations.
Sec. 312. Program of payments to children's hospitals that operate
graduate medical education programs.
Sec. 313. Authority to include costs of training of clinical
psychologists in payments to hospitals.
Sec. 314. Treatment of certain newly established residency programs in
computing medicare payments for the costs of medical education.
Sec. 315. Exception to establishing the number of residents for certain
hospitals.
Subtitle C--Miscellaneous Provisions
Sec. 321. Waiver of 24-month waiting period for medicare coverage of
individuals disabled with amyotrophic lateral sclerosis (ALS).
TITLE IV--RURAL PROVIDER PROVISIONS
Subtitle A--Critical Access Hospitals
Sec. 401. Payments to critical access hospitals for clinical diagnostic
laboratory tests.
Sec. 402. Revision of payment for professional services provided by a
critical access hospital.
Sec. 403. Permitting critical access hospitals to operate PPS exempt
distinct part psychiatric and rehabilitation units.
Subtitle B--Medicare Dependent, Small Rural Hospital Program
Sec. 411. Making the medicare dependent, small rural hospital program
permanent.
Sec. 412. Option to base eligibility for medicare dependent, small rural
hospital program on discharges during any of the 3 most recent audited cost
reporting periods.
Subtitle C--Sole Community Hospitals
Sec. 421. Extension of option to use rebased target amounts to all sole
community hospitals.
Sec. 422. Deeming a certain hospital as a sole community hospital.
Subtitle D--Other Rural Hospital Provisions
Sec. 431. Exemption of hospital swing-bed program from the PPS for
skilled nursing facilities.
Sec. 432. Permanent guarantee of pre-BBA payment levels for outpatient
services furnished by rural hospitals.
Sec. 433. Treatment of certain physician pathology services.
Subtitle E--Other Rural Provisions
Sec. 441. Revision of bonus payments for services furnished in health
professional shortage areas.
Sec. 442. Provider-based rural health clinic cap exemption.
Sec. 443. Payment for certain physician assistant services.
Sec. 444. Exclusion of clinical social worker services and services
performed under a contract with a rural health clinic or federally qualified
health center from the PPS for SNFs.
Sec. 445. Coverage of marriage and family therapist services provided in
rural health clinics.
Sec. 446. Capital infrastructure revolving loan program.
Sec. 447. Grants for upgrading data systems.
Sec. 448. Relief for financially distressed rural hospitals.
Sec. 449. Refinement of medicare reimbursement for telehealth
services.
Sec. 450. MedPAC study on low-volume, isolated rural health care
providers.
TITLE V--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND OTHER
MEDICARE MANAGED CARE PROVISIONS
Sec. 501. Restoring effective date of elections and changes of elections
of Medicare+Choice plans.
Sec. 502. Special Medigap enrollment antidiscrimination provision for
certain beneficiaries.
Sec. 503. Increase in national per capita Medicare+Choice growth
percentage in 2001 and 2002.
Sec. 504. Allowing movement to 50:50 percent blend in 2002.
Sec. 505. Delay from July to November 2000, in deadline for offering and
withdrawing Medicare+Choice plans for 2001.
Sec. 506. Amounts in medicare trust funds available for Secretary's
share of Medicare+Choice education and enrollment-related costs.
Sec. 507. Revised terms and conditions for extension of medicare
community nursing organization (CNO) demonstration project.
Sec. 508. Modification of payment rules for certain frail elderly
medicare beneficiaries.
TITLE VI--PROVISIONS RELATING TO INDIVIDUALS WITH END-STAGE RENAL
DISEASE
Sec. 601. Update in renal dialysis composite rate.
Sec. 602. Revision of payment rates for ESRD patients enrolled in
Medicare+Choice plans.
Sec. 603. Permitting ESRD beneficiaries to enroll in another
Medicare+Choice plan if the plan in which they are enrolled is
terminated.
Sec. 604. Coverage of certain vascular access services for ESRD
beneficiaries provided by ambulatory surgical centers.
Sec. 605. Collection and analysis of information on the satisfaction of
ESRD beneficiaries with the quality of and access to health care under the
medicare program.
TITLE VII--ACCESS TO CARE IMPROVEMENTS THROUGH MEDICAID AND SCHIP
Sec. 701. New prospective payment system for Federally-qualified health
centers and rural health clinics.
Sec. 702. Transitional medical assistance.
Sec. 703. Application of simplified SCHIP procedures under the medicaid
program.
Sec. 704. Presumptive eligibility.
Sec. 705. Improvements to the maternal and child health services block
grant.
Sec. 706. Improving access to medicare cost-sharing assistance for
low-income beneficiaries.
Sec. 707. Breast and cervical cancer prevention and treatment.
TITLE VIII--OTHER PROVISIONS
Sec. 801. Appropriations for Ricky Ray Hemophilia Relief Fund.
Sec. 802. Increase in appropriations for special diabetes programs for
children with type I diabetes and Indians.
Sec. 803. Demonstration grants to improve outreach, enrollment, and
coordination of programs and services to homeless individuals and
families.
Sec. 804. Protection of an HMO enrollee to receive continuing care at a
facility selected by the enrollee.
Sec. 805. Grants to develop and establish real choice systems change
initiatives.
TITLE I--PROVISIONS RELATING TO PART A
Subtitle A--Skilled Nursing Facilities
SEC. 101. ELIMINATING REDUCTION IN SKILLED NURSING FACILITY (SNF) MARKET
BASKET UPDATE.
(a) ELIMINATION OF REDUCTION- Section 1888(e)(4)(E)(ii) (42 U.S.C.
1395yy(e)(4)(E)(ii)) is amended--
(1) in subclause (I), by adding `and' at the end;
(2) by striking subclause (II); and
(3) by redesignating subclause (III) as subclause (II).
(b) SPECIAL RULE FOR PAYMENT FOR SKILLED NURSING FACILITY SERVICES FOR
FISCAL YEAR 2001- Notwithstanding the amendments made by subsection (a), for
purposes of making payments for covered skilled nursing facility services
under section 1888(e) of the Social Security Act (42 U.S.C. 1395yy(e)) for
fiscal year 2001, the Federal per diem rate referred to in paragraph
(4)(E)(ii) of such section--
(1) for the period beginning on October 1, 2000, and ending on March 31,
2001, shall be the rate determined in accordance with subclause (II) of such
paragraph as in effect on the day before the date of enactment of this Act;
and
(2) for the period beginning on April 1, 2001, and ending on September
30, 2001, shall be the rate computed for fiscal year 2000 pursuant to
subclause (I) of such paragraph increased by the skilled nursing facility
market basket percentage change for fiscal year 2001 plus 1 percentage
point.
SEC. 102. REVISION OF BBRA INCREASE FOR SKILLED NURSING FACILITIES IN FISCAL
YEARS 2001 AND 2002.
(a) REVISION- Section 101(d) of BBRA (113 Stat. 1501A-325) is amended--
(A) by striking `4.0 percent for each such fiscal year' and inserting
`the applicable percent (as defined in paragraph (3)) for each such fiscal
year (or portion of such year)'; and
(2) by adding at the end the following new paragraph:
`(3) APPLICABLE PERCENT DEFINED- For purposes of this subsection, the
term `applicable percent' means, with respect to services provided
during--
`(A) the period beginning on October 1, 2000, and ending on March 31,
2001, 4.0 percent;
`(B) the period beginning on April 1, 2001, and ending on September
30, 2001, 8.0 percent; and
`(C) fiscal year 2002, 6.0 percent.
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall take
effect as if included in the enactment of section 101 of BBRA (113 Stat.
1501A-324).
SEC. 103. MEDPAC STUDY ON PAYMENT UPDATES FOR SKILLED NURSING FACILITIES;
AUTHORITY OF SECRETARY TO MAKE ADJUSTMENTS.
(a) STUDY- The Medicare Payment Advisory Commission established under
section 1805 of the Social Security Act (42 U.S.C. 1395b-6) (in this section
referred to as `MedPAC') shall conduct a study of nursing home costs to
determine the adequacy of payment rates (including updates to such rates)
under the medicare program under title XVIII of such Act (42 U.S.C. 1395 et
seq.) (in this section referred to as the `medicare program') for items and
services furnished by skilled nursing facilities. In conducting such study,
MedPAC shall use data on actual costs and cost increases.
(b) REPORT- Not later than 12 months after the date of enactment of this
Act, MedPAC shall submit a report to the Secretary of Health and Human
Services and Congress on the study conducted under subsection (a), including a
description of the methodology and calculations used by the Health Care
Financing Administration to establish the original payment level under the
prospective payment system for skilled nursing facility services under section
1888(e) of the Social Security Act (42 U.S.C. 1395yy(e)) and to annually
update payments under the medicare program for items and services furnished by
skilled nursing facilities, together with recommendations regarding methods to
ensure that all input variables, including the labor costs, the intensity of
services, and the changes in science and technology that are specific to such
facilities, are adequately accounted for.
(c) AUTHORITY OF SECRETARY TO MAKE ADJUSTMENTS- Notwithstanding any other
provision of law, the Secretary of Health and Human Services may make
adjustments to payments under the prospective payment system under section
1888(e) of the Social Security Act (42 U.S.C. 1395yy(e)) for covered skilled
nursing facility services to reflect any necessary adjustments to such
payments as is appropriate as a result of the study conducted under subsection
(a).
(1) IN GENERAL- Not later than April 1, 2002, the Secretary of Health
and Human Services shall publish for public comment a description of--
(A) whether the Secretary will make any adjustments pursuant to
subsection (c); and
(B) if so, the form of such adjustments.
(2) FINAL FORM- Not later than August 1, 2002, the Secretary of Health
and Human Services shall publish the description described in paragraph (1)
in final form.
Subtitle B--PPS Hospitals
SEC. 111. REVISION OF REDUCTION OF INDIRECT GRADUATE MEDICAL EDUCATION
PAYMENTS.
(1) IN GENERAL- Section 1886(d)(5)(B)(ii) (42 U.S.C.
1395ww(d)(5)(B)(ii)) is amended--
(A) in subclause (IV), by adding `and' at the end; and
(B) by striking subclauses (V) and (VI) and inserting the following
new subclause:
`(V) on or after October 1, 2000, `c' is equal to 1.6.'.
(2) TECHNICAL AMENDMENTS- Section 1886(d)(5)(B) (42 U.S.C.
1395ww(d)(5)(B)), as amended by paragraph (1), is amended--
(A) by realigning the left margins of clauses (ii) and (v) so as to
align with the left margin of clause (i); and
(B) by realigning the left margins of subclauses (I) through (V) of
clause (ii) appropriately.
(b) SPECIAL ADJUSTMENT FOR PURPOSES OF MAINTAINING 6.5 PERCENT IME PAYMENT
FOR FISCAL YEAR 2001- Notwithstanding paragraph (5)(B)(ii)(V) of section
1886(d) of the Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)(V)), as
amended by subsection (a), for purposes of making payments for subsection (d)
hospitals (as defined in paragraph (1)(B) of such section) with indirect costs
of medical education, the indirect
teaching adjustment factor referred to in paragraph (5)(B)(ii) of such
section shall be determined--
(1) for discharges occurring on or after October 1, 2000, and before
April 1, 2001, pursuant to such paragraph as in effect on the day before the
date of enactment of this Act; and
(2) for discharges occurring on or after April 1, 2001, and before
October 1, 2001, by substituting `1.66' for `1.6' in subclause (V) of such
paragraph (as so amended).
(c) CONFORMING AMENDMENT RELATING TO DETERMINATION OF STANDARDIZED AMOUNT-
Section 1886(d)(2)(C)(i) (42 U.S.C. 1395ww(d)(2)(C)(i)) is amended--
(1) by inserting a comma after `Balanced Budget Act of 1997'; and
(2) by inserting `, or any payment under such paragraph resulting from
the application of section 111(b) of the Medicare, Medicaid, and SCHIP
Balanced Budget Refinement Act of 2000' after `Balanced Budget Refinement
Act of 1999'.
SEC. 112. ELIMINATING REDUCTION IN PPS HOSPITAL PAYMENT UPDATE.
(a) IN GENERAL- Section 1886(b)(3)(B)(i) (42 U.S.C. 1395ww(b)(3)(B)(i)) is
amended--
(1) in subclause (XV), by adding `and' at the end;
(2) by striking subclauses (XVI) and (XVII);
(3) by redesignating subclause (XVIII) as subclause (XVI); and
(4) in subclause (XVI), as so redesignated, by striking `fiscal year
2003' and inserting `fiscal year 2001'.
(b) SPECIAL RULE FOR PAYMENT FOR INPATIENT HOSPITAL SERVICES FOR FISCAL
YEAR 2001- Notwithstanding the amendments made by subsection (a), for purposes
of making payments for fiscal year 2001 for inpatient hospital services
furnished by subsection (d) hospitals (as defined in section 1886(d)(1)(B) of
the Social Security Act (42 U.S.C. 1395ww(d)(1)(B))), the `applicable
percentage increase' referred to in section 1886(b)(3)(B)(i) of such Act (42
U.S.C. 1395ww(b)(3)(B)(i))--
(1) for discharges occurring on or after October 1, 2000, and before
April 1, 2001, shall be determined in accordance with subclause (XVI) of
such section as in effect on the day before the date of enactment of this
Act; and
(2) for discharges occurring on or after April 1, 2001, and before
October 1, 2001, shall be equal to--
(A) the market basket percentage increase plus 1.1 percentage points
for hospitals (other than sole community hospitals) in all areas;
and
(B) the market basket percentage increase for sole community
hospitals.
SEC. 113. ELIMINATING REDUCTION IN DISPROPORTIONATE SHARE HOSPITAL (DSH)
PAYMENTS.
(a) ELIMINATION OF REDUCTION-
(1) IN GENERAL- Section 1886(d)(5)(F)(ix) (42 U.S.C.
1395ww(d)(5)(F)(ix)) is amended--
(A) in subclause (III), by striking `during each of fiscal years 2000
and 2001' and inserting `during fiscal year 2000';
(B) by striking subclause (IV);
(C) by redesignating subclause (V) as subclause (IV); and
(D) in subclause (IV), as so redesignated, by striking `during fiscal
year 2003' and inserting `during fiscal year 2001'.
(2) EFFECTIVE DATE- The amendments made by this subsection shall apply
to discharges occurring on or after October 1, 2000.
(b) SPECIAL RULE FOR DSH PAYMENT FOR FISCAL YEAR 2001- Notwithstanding the
amendments made by subsection (a)(1), for purposes of making disproportionate
share payments for subsection (d) hospitals (as defined in section
1886(d)(1)(B) of the Social Security Act (42 U.S.C. 1395ww(d)(1)(B))) for
fiscal year 2001, the additional payment amount otherwise determined under
clause (ii) of section 1886(d)(5)(F) of the Social Security Act (42 U.S.C.
1395ww(d)(5)(F))--
(1) for discharges occurring on or after October 1, 2000, and before
April 1, 2001, shall be adjusted as provided by clause (ix)(III) of such
section as in effect on the day before the date of enactment of this Act;
and
(2) for discharges occurring on or after April 1, 2001, and before
October 1, 2001, shall be increased by 3 percent.
(c) CONFORMING AMENDMENTS RELATING TO DETERMINATION OF STANDARDIZED
AMOUNT- Section 1886(d)(2)(C)(iv) (42 U.S.C. 1395ww(d)(2)(C)(iv)), is
amended--
(1) by striking `Act of 1989 or' and inserting `Act of 1989,'; and
(2) by inserting `, or the enactment of section 113(b) of the Medicare,
Medicaid, and SCHIP Balanced Budget Refinement Act of 2000' after `Omnibus
Budget Reconciliation Act of 1990'.
SEC. 114. EQUALIZING THE THRESHOLD AND UPDATING PAYMENT FORMULAS FOR
DISPROPORTIONATE SHARE HOSPITALS.
(a) APPLICATION OF UNIFORM 15 PERCENT THRESHOLD- Section 1886(d)(5)(F)(v)
(42 U.S.C. 1395ww(d)(5)(F)(v)) is amended by striking `exceeds--' and all that
follows and inserting `exceeds 15 percent.'.
(b) CHANGE IN PAYMENT PERCENTAGE FORMULAS- Section 1886(d)(5)(F)(viii) (42
U.S.C. 1395ww(d)(5)(F)(viii)) is amended to read as follows:
`(viii) The formula used to determine the disproportionate share
adjustment percentage for a cost reporting period for a hospital described in
subclause (II), (III), or (IV) of clause (iv) is--
`(I) in the case of such a hospital with a disproportionate patient
percentage (as defined in clause (vi)) that does not exceed 20.2,
(P-15)(.65) + 2.5;
`(II) in the case of such a hospital with a disproportionate patient
percentage (as so defined) that exceeds 20.2 but does not exceed 25.2,
(P-20.2)(.825) + 5.88;
`(III) except as provided in subclause (IV), in the case of such a
hospital with a disproportionate patient percentage (as so defined) that
exceeds 25.2, the disproportionate share adjustment percentage = 10;
and
`(IV) in the case of such a hospital with a disproportionate patient
percentage (as so defined) that exceeds 30.0 and that is described in clause
(iv)(III), (P-30)(.6) + 10;
where `P' is the hospital's disproportionate patient percentage (as so
defined).'.
(c) CONFORMING AMENDMENTS- Section 1886(d)(5)(F)(iv) (42 U.S.C.
1395ww(d)(5)(F)(iv)) is amended--
(1) in subclause (I), by striking `is described in the second sentence
of clause (v)' and inserting `is located in a rural area and has 500 or more
beds';
(2) by amending subclause (II) to read as follows:
`(II) is located in an urban area and has less than 100 beds, or is
located in a rural area and has less than 500 beds and is not described in
subclause (III) or (IV), is equal to the percent determined in accordance
with the applicable formula described in clause (viii);';
(3) by striking subclauses (III) and (IV);
(4) by redesignating subclauses (V) and (VI) as subclauses (III) and
(IV), respectively;
(5) in subclause (III) (as so redesignated), by striking `and is not
classified as a sole community hospital under subparagraph (D),'; and
(6) in subclause (IV) (as so redesignated), by striking `10 percent' and
inserting `equal to the percent determined in accordance with the applicable
formula described in clause (viii)'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
discharges occurring on or after April 1, 2001.
SEC. 115. CARE FOR LOW-INCOME PATIENTS.
(a) FREEZE IN MEDICAID DSH ALLOTMENTS-
(1) IN GENERAL- Section 1923(f) (42 U.S.C. 1396r-4(f)) is
amended--
(A) by redesignating paragraph (4) as paragraph (5); and
(B) by inserting after paragraph (3), the following new
paragraph:
`(4) SPECIAL RULE FOR FISCAL YEARS 2001 THROUGH 2008- With respect to
each of fiscal years 2001 through 2008--
`(A) paragraph (2) shall be applied--
`(I) in the heading, `2001' for `2002';
`(II) in the matter preceding the table, `2001 (and the DSH
allotment for a State for fiscal year 2001 is the same as the DSH
allotment for the State for fiscal year 2000, as determined under the
following table)' for `2002'; and
`(ii) without regard to the columns in the table relating to FY 01
and FY 02 (fiscal years 2001 and 2002); and
`(B) paragraph (3) shall be applied by substituting--
`(i) in the heading, `2002' for `2003';
`(ii) in subparagraph (A), `2002' for `2003'.'.
(2) REPEAL; APPLICABILITY- Effective October 1, 2008, the amendments
made by paragraph (1) are repealed and section 1923(f) of the Social
Security Act (42 U.S.C. 1396r-4(f)) shall be applied and administered as if
such amendments had not been enacted.
(b) INCREASE IN DSH ALLOTMENTS FOR THE DISTRICT OF COLUMBIA-
(1) IN GENERAL- Each of the entries in the table in section 1923(f)(2)
(42 U.S.C. 1396r-4(f)(2)) relating to the District of Columbia for FY 98
(fiscal year 1998), for FY 99 (fiscal year 1999), for FY 00 (fiscal year
2000), for FY 01 (fiscal year 2001), and for FY 02 (fiscal year 2002) are
amended by striking the amount otherwise specified and inserting
`43.4'.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take
effect as if included in the enactment of section 4721(a) of BBA (111 Stat.
511).
(c) OPTIONAL ELIGIBILITY OF CERTAIN ALIEN PREGNANT WOMEN AND CHILDREN FOR
MEDICAID AND SCHIP-
(1) MEDICAID- Section 1903(v) (42 U.S.C. 1396b(v)) is amended--
(A) in paragraph (1), by striking `paragraph (2)' and inserting
`paragraphs (2) and (4)'; and
(B) by adding at the end the following new paragraph:
`(4)(A) A State may elect (in a plan amendment under this title) to
provide medical assistance under this title, notwithstanding sections 401(a),
402(b), 403, and 421 of the Personal Responsibility and Work Opportunity
Reconciliation Act of 1996, for aliens who are lawfully residing in the United
States (including battered aliens described in section 431(c) of such Act) and
who are otherwise eligible for such assistance, within any of the following
eligibility categories:
`(i) PREGNANT WOMEN- Women during pregnancy (and during the 60-day
period beginning on the last day of the pregnancy).
`(ii) CHILDREN- Children (as defined under such plan), including
optional targeted low-income children described in section
1905(u)(2)(B).
`(B) In the case of a State that has elected to provide medical assistance
to a category of aliens under subparagraph (A), no action may be brought under
an affidavit of support against any sponsor of such an alien on the basis of
provision of assistance to such category.'.
(2) SCHIP- Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended by
adding at the end the following new subparagraph:
`(D) Section 1903(v)(4)(A)(ii) (relating to optional coverage of
permanent resident alien children), but only if the State has in effect an
election under that same eligibility category for purposes of title
XIX.'.
(3) EFFECTIVE DATE- The amendments made by this section take effect on
October 1, 2000, and apply to medical assistance and child health assistance
furnished on or after such date.
SEC. 116. MODIFICATION OF PAYMENT RATE FOR PUERTO RICO HOSPITALS.
(a) MODIFICATION OF PAYMENT RATE- Section 1886(d)(9)(A) (42 U.S.C.
1395ww(d)(9)(A)) is amended--
(1) in clause (i), by striking `October 1, 1997, 50 percent (' and
inserting `October 1, 2000, 25 percent (for discharges between October 1,
1997, and September 30, 2000, 50 percent,'; and
(2) in clause (ii), in the matter preceding subclause (I), by striking
`after October 1, 1997, 50 percent (' and inserting `after October 1, 2000,
75 percent (for discharges between October 1, 1997, and September 30, 2000,
50 percent,'.
(b) SPECIAL RULE FOR PAYMENT FOR FISCAL YEAR 2001-
(1) IN GENERAL- Notwithstanding the amendment made by subsection (a),
for purposes of making payments for the operating costs of inpatient
hospital services of a section 1886(d) Puerto Rico hospital for fiscal year
2001, the amount referred to in the matter preceding clause (i) of section
1886(d)(9)(A) of the Social Security Act (42 U.S.C. 1395ww(d)(9)(A))--
(A) for discharges occurring on or after October 1, 2000, and before
April 1, 2001, shall be determined in accordance with such section as in
effect on the day before the date of enactment of this Act; and
(B) for discharges occurring on or after April 1, 2001, and before
October 1, 2001, shall be determined--
(i) using 0 percent of the Puerto Rico adjusted DRG prospective
payment rate referred to in clause (i) of such section; and
(ii) using 100 percent of the discharge-weighted average referred to
in clause (ii) of such section.
(2) SECTION 1886(d) PUERTO RICO HOSPITAL- For purposes of this
subsection, the term `section 1886(d) Puerto Rico hospital' has the meaning
given the term `subsection (d) Puerto Rico hospital' in the last sentence of
section 1886(d)(9)(A) of the Social Security Act (42 U.S.C.
1395ww(d)(9)(A)).
SEC. 117. MEDPAC STUDY ON HOSPITAL AREA WAGE INDEXES.
(1) IN GENERAL- The Medicare Payment Advisory Commission established
under section 1805 of the Social Security Act (42 U.S.C. 1395b-6) (in this
section referred to as `MedPAC') shall conduct a study on the hospital area
wage indexes used in making payments to hospitals under section 1886(d) of
the Social Security Act (42 U.S.C. 1395ww(d)), including an assessment of
the accuracy of those indexes in reflecting geographic differences in wage
and wage-related costs of hospitals.
(2) CONSIDERATIONS- In conducting the study under paragraph (1), MedPAC
shall consider--
(A) the appropriate method for determining hospital area wage
indexes;
(B) the appropriate portion of hospital payments that should be
adjusted by the applicable area wage index;
(C) the appropriate method for adjusting the wage index by
occupational mix; and
(D) the feasibility and impact of making changes (as determined
appropriate by MedPAC) to the methods used to determine such indexes,
including the need for a data system required to implement such
changes.
(b) REPORT- Not later than 18 months after the date of enactment of this
Act, MedPAC shall submit a report to the Secretary of Health and Human
Services and Congress on the study conducted under subsection (a) together
with such recommendations for legislation and administrative action as MedPAC
determines appropriate.
Subtitle C--PPS Exempt Hospitals
SEC. 121. TREATMENT OF CERTAIN CANCER HOSPITALS.
(a) IN GENERAL- Section 1886(d)(1)(B)(v) of the Social Security Act (42
U.S.C. 1395ww(d)(1)(B)(v)) is amended--
(1) in subclause (I), by striking `or' at the end;
(2) in subclause (II), by striking the semicolon at the end and
inserting `, or'; and
(3) by adding at the end the following:
`(III) a hospital that was recognized as a clinical cancer research
center by the National Cancer Institute of the National Institutes of Health
as of February 18, 1998, that has never been reimbursed for inpatient
hospital services pursuant to a reimbursement system under a demonstration
project under section 1814(b), that is a freestanding facility organized
primarily for treatment of and research on cancer and is not a unit of
another hospital, that as of the date of enactment of this subclause, is
licensed for 162 acute care beds, and that demonstrates for the 4-year
period ending on June 30, 1999, that at least 50 percent of its total
discharges have a principal finding of neoplastic disease, as defined in
subparagraph (E);'.
(b) CONFORMING AMENDMENT- Section 1886(d)(1)(E) of the Social Security Act
(42 U.S.C. 1395ww(d)(1)(E)) is amended by striking `For purposes of
subparagraph (B)(v)(II)' and inserting `For purposes of subclauses (II) and
(III) of subparagraph (B)(v)'.
(1) APPLICATION TO COST REPORTING PERIODS- Any classification by reason
of section 1886(d)(1)(B)(v)(III) of the Social Security Act (as added by
subsection (a)) shall apply to 12-month cost reporting periods beginning on
or after July 1, 1999.
(2) BASE YEAR- Notwithstanding the provisions of section 1886(b)(3)(E)
of such Act (42 U.S.C. 1395ww(b)(3)(E)) or other provisions to the contrary,
the base cost reporting period for purposes of determining the target amount
for any hospital classified by reason of section 1886(d)(1)(B)(v)(III) of
such Act (as added by subsection (a)) shall be the 12-month cost reporting
period beginning on July 1, 1995.
(3) DEADLINE FOR PAYMENTS- Any payments owed to a hospital by reason of
this subsection shall be made expeditiously, but in no event later than 1
year after the date of enactment of this Act.
SEC. 122. PAYMENT ADJUSTMENT FOR INPATIENT SERVICES IN REHABILITATION
HOSPITALS.
(a) OPTION TO APPLY PROSPECTIVE PAYMENT SYSTEM DURING TRANSITION PERIOD-
Section 1886(j)(1)(A) (42 U.S.C. 1395ww(j)(1)(A)) is amended in the matter
preceding subclause (i) by inserting `the greater of the prospective payment
rate determined in paragraph (3)(A) or' after `is equal to'.
(b) INCREASE IN PROSPECTIVE PAYMENT PERCENTAGE DURING TRANSITION PERIOD-
Section 1886(j)(1)(A)(ii)(I) (42 U.S.C. 1395ww(j)(1)(A)(ii)(I)) is amended by
inserting `102 percent of' before `the per unit'.
(c) EFFECTIVE DATE- The amendments made by this section shall take effect
as if included in the enactment of section 4421 of BBA (111 Stat. 410).
Subtitle D--Hospice Care
SEC. 131. REVISION IN PAYMENTS FOR HOSPICE CARE.
(a) INCREASE- Section 1814(i)(1)(C) of the Social Security Act (42 U.S.C.
1395f(i)(1)(C)) is amended--
(1) in clause (i), by adding at the end the following new sentence:
`With respect to routine home care and other services included in hospice
care furnished during fiscal year 2001, the payment rates for such care and
services for such fiscal year shall be 110 percent of such rates as would
otherwise be in effect for such fiscal year (taking into account the
increase under clause (ii) but not taking into account the increase under
section 131 of the Medicare, Medicaid, and SCHIP Balanced Budget Refinement
Act of 1999), and such payment rates shall be used in determining payments
for such care and services furnished in a subsequent fiscal year under
clause (ii).'; and
(2) in clause (ii), by striking `during a subsequent fiscal year' and
inserting `during a fiscal year beginning after September 30, 1990'.
(b) ELIMINATING REDUCTION IN UPDATE- Section 1814(i)(1)(C)(ii) of the
Social Security Act (42 U.S.C. 1395f(i)(1)(C)(ii)) is amended--
(1) in subclause (VI), by striking `through 2002' and inserting `through
2000'; and
(2) in subclause (VII), by striking `for a subsequent fiscal year' and
inserting `for fiscal year 2001 and each subsequent fiscal year'.
(c) SPECIAL RULE FOR PAYMENT FOR HOSPICE CARE FOR FISCAL YEAR 2001-
Notwithstanding the amendments made by subsections (a) and (b), for purposes
of making payments under section 1814(i)(1)(C) of the Social Security Act (42
U.S.C. 1395f(i)(1)(C)) for routine home care and other services included in
hospice care furnished during fiscal year 2001, such payment rates shall be
determined--
(1) for the period beginning on October 1, 2000, and ending on March 31,
2001, in accordance with such section as in effect on the day before the
date of enactment of this Act; and
(2) for the period beginning on April 1, 2001, and ending on September
30, 2001--
(A) by substituting `120 percent' for `110 percent' in the second
sentence of clause (i) of such section (as added by subsection (a)(1));
and
(B) as if the increase under subclause (ii)(VII) (as amended by
subsection (b)) for fiscal year 2001 was equal to the market basket
increase for the fiscal year plus 1.0 percentage point.
Subtitle E--Other Provisions
SEC. 141. HOSPITALS REQUIRED TO COMPLY WITH BLOODBORNE PATHOGENS
STANDARD.
(a) AGREEMENTS WITH HOSPITALS- Section 1866(a)(1) (42 U.S.C. 1395cc(a)(1))
is amended--
(1) in subparagraph (R), by striking `and' at the end;
(2) in subparagraph (S), by striking the period at the end and inserting
`, and'; and
(3) by inserting after subparagraph (S) the following new
subparagraph:
`(T) in the case of hospitals that are not otherwise subject to
regulation by the Occupational Safety and Health Administration, to comply
with the Bloodborne Pathogens standard under section 1910.1030 of title 29
of the Code of Federal Regulations.'.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
agreements in effect on or after the date that is 1 year after the date of
enactment of this Act.
SEC. 142. INFORMATICS AND DATA SYSTEMS GRANT PROGRAM.
(1) IN GENERAL- The Secretary of Health and Human Services (in this
section referred to as the `Secretary') shall establish a program to make
grants to hospitals that have submitted applications in accordance with
subsection (c) to assist such hospitals in offsetting the costs related
to--
(A) developing and implementing standardized clinical health care
informatics systems designed to improve medical care and reduce adverse
events and health care complications resulting from medication errors;
and
(B) establishing data systems to comply with the administrative
simplification requirements under part C of title XI of the Social
Security Act (42 U.S.C. 1320d et seq.).
(2) COSTS- For purposes of paragraph (1), the term `costs' shall include
costs associated with--
(A) purchasing computer software and hardware; and
(B) providing education and training to hospital staff on computer
information systems.
(3) DURATION- The authority of the Secretary to make grants under this
section shall terminate on September 30, 2011.
(4) LIMITATION- A hospital that has received a grant under section 1611
of the Public Health Service Act (as added by section 447 of this Act) is
not eligible to receive a grant under this section.
(b) SPECIAL CONSIDERATION FOR LARGE URBAN HOSPITALS- In awarding grants
under this section, the Secretary shall give special consideration to
hospitals located in large urban areas (as defined for purposes of section
1886(d) of the Social Security Act (42 U.S.C. 1395ww(d)).
(c) APPLICATION- A hospital seeking a grant under this section shall
submit an application to the Secretary at such time and in such form and
manner as the Secretary specifies.
(1) INFORMATION- A hospital receiving a grant under this section shall
furnish the Secretary
with such information as the Secretary may require to--
(A) evaluate the project for which the grant is made; and
(B) ensure that the grant is expended for the purposes for which it is
made.
(2) TIMING OF SUBMISSION-
(A) INTERIM REPORTS- The Secretary shall report to the Committee on
Ways and Means of the House of Representatives and the Committee on
Finance of the Senate at least annually on the grant program established
under this section, including in such report information on the number of
grants made, the nature of the projects involved, the geographic
distribution of grant recipients, and such other matters as the Secretary
deems appropriate.
(B) FINAL REPORT- The Secretary shall submit a final report to such
committees not later than 180 days after the completion of all of the
projects for which a grant is made under this section.
(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated from the Federal Hospital Insurance Trust Fund under section 1817
of the Social Security Act (42 U.S.C. 1395i) $25,000,000 for each of the
fiscal years 2001 through 2011 for the purposes of making grants under this
section.
SEC. 143. RELIEF FROM MEDICARE PART A LATE ENROLLMENT PENALTY FOR GROUP
BUY-IN FOR STATE AND LOCAL RETIREES.
Section 1818(d) (42 U.S.C. 1395i-2(d)) is amended by adding at the end the
following new paragraph:
`(6)(A) In the case where a State, a political subdivision of a State,
or an agency or instrumentality of a State or political subdivision thereof
determines to pay, for the life of each individual, the monthly premiums due
under paragraph (1) on behalf of each of the individuals in a qualified
State or local government retiree group who meets the conditions of
subsection (a), the amount of any increase otherwise applicable under
section 1839(b) (as modified by subsection (c)(6) of this section) with
respect to the monthly premium for benefits under this part for an
individual who is a member of such group shall be reduced by the total
amount of taxes paid under section 3101(b) of the Internal Revenue Code of
1986 by such individual and under section 3111(b) by the employers of such
individual on behalf of such individual with respect to employment (as
defined in section 3121(b) of such Code).
`(B) For purposes of this paragraph, the term `qualified State or local
government retiree group' means all of the individuals who retire prior to a
specified date that is before January 1, 2002, from employment in 1 or more
occupations or other broad classes of employees of--
`(ii) a political subdivision of the State; or
`(iii) an agency or instrumentality of the State or political
subdivision of the State.'.
Subtitle F--Transitional Provisions
SEC. 151. RECLASSIFICATION OF CERTAIN COUNTIES AND AREAS FOR PURPOSES OF
REIMBURSEMENT UNDER THE MEDICARE PROGRAM.
(a) FISCAL YEARS 2002 THROUGH 2004- Notwithstanding any other provision of
law, effective for discharges occurring during fiscal years 2002, 2003, and
2004, for purposes of making payments under section 1886(d) of the Social
Security Act (42 U.S.C. 1395ww(d))--
(1) Iredell County, North Carolina is deemed to be located in the
Charlotte-Gastonia-Rock Hill, North Carolina-South Carolina Metropolitan
Statistical Area; and
(2) the large urban area of New York, New York is deemed to include
Orange County, New York (including hospitals that have been reclassified
into such county).
For purposes of that section, any reclassification under this subsection
shall be treated as a decision of the Medicare Geographic Classification
Review Board under paragraph (10) of that section.
(b) FISCAL YEARS 2001 THROUGH 2003- Notwithstanding any other provision of
law, effective for discharges occurring during fiscal years 2001, 2002, and
2003, for purposes of making payments under section 1886(d) of the Social
Security Act (42 U.S.C. 1395ww(d))--
(1) the Jackson, Michigan Metropolitan Statistical Area is deemed to be
located in the Ann Arbor, Michigan Metropolitan Statistical Area;
(2) Tangipahoa Parish, Louisiana is deemed to be located in the New
Orleans, Louisiana Metropolitan Statistical Area; and
(3) the large urban area of New York, New York is deemed to include
Duchess County, New York.
For purposes of that section, any reclassification under this subsection
shall be treated as a decision of the Medicare Geographic Classification
Review Board under paragraph (10) of that section.
(c) TECHNICAL CORRECTION TO BBRA-
(1) IN GENERAL- Section 152 of BBRA (113 Stat. 1501A-334) is
amended--
(A) in subsection (a)(2), by inserting `(including hospitals that have
been reclassified into such county)' after `such county'; and
(B) in subsection (b)(2), by inserting `(including hospitals that have
been reclassified into such county)' after `Orange County, New York';
and
(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take
effect as if included in the enactment of section 152 of BBRA (113 Stat.
1501A-334).
SEC. 152. CALCULATION AND APPLICATION OF WAGE INDEX FLOOR FOR A CERTAIN
AREA.
Notwithstanding any other provision of section 1886(d) of the Social
Security Act (42 U.S.C. 1395ww(d)), for discharges occurring during fiscal
year 2000, the Secretary of Health and Human Services shall calculate and
apply the wage index for the Barnstable-Yarmouth Metropolitan Statistical Area
under that section as if the Jordan Hospital were classified in such area for
purposes of payment under that section for such fiscal year. Such
recalculation shall not affect the wage index for any other area.
SEC. 153. RECLASSIFICATION OF A CERTAIN COUNTY FOR PURPOSES OF REIMBURSEMENT
UNDER THE MEDICARE PROGRAM.
(a) IN GENERAL- Notwithstanding any other provision of law, effective for
discharges occurring on or after October 1, 2000, for purposes of making
payments under section 1886(d) of the Social Security Act (42 U.S.C.
1395ww(d)) to a covered hospital in Boston, Metropolitan Statistical Area,
such covered hospital is deemed to be located in the Barnstable-Yarmouth,
Metropolitan Statistical Area.
(b) COVERED HOSPITAL DEFINED- In subsection (a), the term `covered
hospital' means a subsection (d) hospital (as defined in paragraph (1)(B) of
such section 1886(d)) that--
(1) for discharges occurring during fiscal year 1999--
(A) received additional payments under paragraph (5)(F) of such
section (relating to
serving a significantly disproportionate number of low-income patients); and
(B) received no additional payments under paragraph (5)(B) of such
section (relating to indirect costs of medical education); and
(2) is located in Fall River, Massachusetts, New Bedford, Massachusetts,
or Wareham, Massachusetts.
(c) CONSTRUCTION- For purposes of such section 1886(d), the
reclassification under subsection (a) shall be treated as a decision of the
Medicare Geographic Classification Review Board under paragraph (10) of that
section.
TITLE II--PROVISIONS RELATING TO PART B
Subtitle A--Hospital Outpatient Services
SEC. 201. REDUCTION OF EFFECTIVE HOPD COINSURANCE RATE TO 20 PERCENT BY
2019.
Section 1833(t)(3)(B)(ii) (42 U.S.C. 1395l(t)(3)(B)(ii)) is amended--
(1) by striking `If the' and inserting:
`(I) IN GENERAL- If the'; and
(2) by adding at the end the following new subclause:
`(II) ACCELERATED PHASE-IN- The Secretary shall estimate, prior to
January 1, 2002, the unadjusted copayment amount for each such service
(or groups of such services). If the Secretary estimates such
unadjusted copayment amount to be greater than 20 percent for any such
service (or group of such services) on or after January 1, 2019, the
Secretary shall, for services furnished beginning on or after January
1, 2002, reduce the unadjusted copayment amount for such service (or
group of such services) in equal increments each year, from the amount
applicable in 2001, by an amount estimated by the Secretary such that
the unadjusted copayment amount shall equal 20 percent beginning on or
after January 1, 2019.'.
SEC. 202. APPLICATION OF TRANSITIONAL CORRIDOR TO CERTAIN HOSPITALS THAT DID
NOT SUBMIT A 1996 COST REPORT.
(a) IN GENERAL- Section 1833(t)(7)(F)(ii)(I) (42 U.S.C.
1395l(t)(7)(F)(ii)(I)) is amended by inserting `(or, in the case of a hospital
that did not submit a cost report for such period, during the first cost
reporting period ending in a year after 1996 and before 2001 for which the
hospital submitted a cost report)' after `1996'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
as if included in the enactment of section 202 of BBRA.
SEC. 203. PERMANENT GUARANTEE OF PRE-BBA PAYMENT LEVELS FOR OUTPATIENT
SERVICES FURNISHED BY CHILDREN'S HOSPITALS.
(a) IN GENERAL- Section 1833(t)(7)(D) (42 U.S.C. 1395l(t)(7)(D)), as
amended by section 432, is amended--
(1) in the heading, by inserting `, CHILDREN'S,' after `SMALL RURAL';
and
(2) by striking `section 1886(d)(1)(B)(v)' and inserting `clause (iii)
or (v) of section 1886(d)(1)(B)'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply to
services provided on or after the date that is 1 year after the date of
enactment of this Act.
Subtitle B--Provisions Relating to Physicians
SEC. 211. LOAN DEFERMENT FOR RESIDENTS.
(a) FAIRNESS IN MEDICAL STUDENT LOAN FINANCING-
(1) ELIGIBILITY REQUIREMENTS- Section 427(a)(2)(C)(iii) of the Higher
Education Act of 1965 (20 U.S.C. 1077(a)(2)(C)(iii)) is amended by inserting
before the semicolon the following: `, except that for a medical student
such period shall not exceed the full initial residency period'.
(2) INSURANCE PROGRAM AGREEMENTS- Section 428(b)(1)(M)(iii) of the
Higher Education Act of 1965 (20 U.S.C. 1078(b)(1)(M)(iii)) is amended by
inserting before the semicolon the following: `, except that for a medical
student such period shall not exceed the full initial residency
period'.
(3) DEFERMENT ELIGIBILITY- Section 455(f)(2)(C) of the Higher Education
Act of 1965 (20 U.S.C. 1087e(f)(2)(C)) is amended by inserting before the
period the following: `, except that for a medical student such period shall
not exceed the full initial residency period'.
(4) CONTENTS OF LOAN AGREEMENT- Section 464(c)(2)(A)(iii) of the Higher
Education Act of 1965 (20 U.S.C. 1087dd(c)(2)(A)(iii)) is amended by
inserting before the semicolon the following: `, except that for a medical
student such period shall not exceed the full initial residency
period'.
(b) FAIRNESS IN ECONOMIC HARDSHIP DETERMINATION- Section 435(o)(1)(B) of
the Higher Education Act of 1965 (20 U.S.C. 1085(o)(1)(B)) is amended to read
as follows:
`(B) such borrower is working full time and has a Federal educational
debt burden that equals or exceeds 20 percent of such borrower's adjusted
gross income, and the difference between such borrower's adjusted gross
income minus such burden is less than 250 percent of the greater
of--
`(i) the annual earnings of an individual earning the minimum wage
under section 6 of the Fair Labor Standards Act of 1938; or
`(ii) the income official poverty line (as defined by the Office of
Management and Budget, and revised annually in accordance with section
673(2) of the Community Service Block Grant Act) applicable to a family
of 2; or'.
SEC. 212. GAO STUDIES AND REPORTS ON MEDICARE PAYMENTS.
(a) GAO STUDY ON HCFA POST-PAYMENT AUDIT PROCESS-
(1) STUDY- The Comptroller General of the United States shall conduct a
study of the post-payment audit process under the medicare program under
title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) (in this
section referred to as the `medicare program') as such process applies to
physicians, including the proper level of resources that the Health Care
Financing Administration should devote to educating physicians
regarding--
(B) documentation requirements; and
(C) the calculation of overpayments.
(2) REPORT- Not later than 18 months after the date of enactment of this
Act, the Comptroller General shall submit a report to the Secretary of
Health and Human Services and Congress on the study conducted under
paragraph (1) together with specific recommendations for changes or
improvements in the post-payment audit process described in such
paragraph.
(b) GAO STUDY ON ADMINISTRATION AND OVERSIGHT-
(1) STUDY- The Comptroller General of the United States shall conduct a
study on the aggregate effects of regulatory, audit, oversight, and
paperwork burdens on physicians and other health care providers
participating in the medicare program.
(2) REPORT- Not later than 18 months after the date of enactment of this
Act, the Comptroller General shall submit a report to the Secretary of
Health and Human Services and Congress on the study conducted under
paragraph (1) together with recommendations regarding any area in
which--
(A) a reduction in paperwork, an ease of administration, or an
appropriate change in oversight and review may be accomplished;
or
(B) additional payments or education are needed to assist physicians
and other health care providers in understanding and complying with any
legal or regulatory requirements.
SEC. 213. MEDPAC STUDY ON THE RESOURCE-BASED PRACTICE EXPENSE SYSTEM.
(a) STUDY- The Medicare Payment Advisory Commission established under
section 1805 of the Social Security Act (42 U.S.C. 1395b-6) (in this section
referred to as `MedPAC') shall conduct a study of the refinements to the
practice expense relative value units during the transition to a
resource-based practice expense system for physician payments under the
medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395
et seq.) (in this section referred to as the `medicare program').
(b) REPORT- Not later than July 1, 2001, MedPAC shall submit a report to
the Secretary of Health and Human Services and Congress on the study conducted
under subsection (a) together with recommendations regarding--
(1) any change or adjustment that is appropriate to ensure full access
to a spectrum of care for beneficiaries under the medicare program;
and
(2) the appropriateness of payments to physicians.
Subtitle C--Ambulance Services
SEC. 221. ELECTION TO FOREGO PHASE-IN OF FEE SCHEDULE FOR AMBULANCE
SERVICES.
Section 1834(l) (42 U.S.C. 1395m(l)) is amended by adding at the end the
following new paragraph:
`(8) ELECTION TO FOREGO PHASE-IN OF FEE SCHEDULE-
`(A) IN GENERAL- If the Secretary provides for a phase-in of the fee
schedule established under this subsection, a supplier of ambulance
services may make an election to receive payments based only on such fee
schedule at any time during such phase-in, and the Secretary shall begin
to make payments to the supplier based only on such fee schedule not later
than the date that is 60 days after the date on which the supplier
notifies the Secretary of such election.
`(B) WAIVER OF BUDGET NEUTRALITY- The Secretary shall apply paragraph
(3)(A) as if this paragraph had not been enacted.'.
SEC. 222. PRUDENT LAYPERSON STANDARD FOR EMERGENCY AMBULANCE SERVICES.
(a) IN GENERAL- Section 1861(s)(7) (42 U.S.C. 1395x(s)(7)) is amended by
inserting before the semicolon
at the end the following: `, except that such regulations shall not fail to
treat ambulance services as medical and other health services solely because the
ultimate diagnosis of the individual receiving the ambulance services results in
a conclusion that ambulance services were not necessary, as long as the request
for ambulance services is made after the sudden onset of a medical condition
that would be classified as an emergency medical condition (as defined in
section 1852(d)(3)(B)).'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply with
respect to ambulance services provided on or after October 1, 2000.
SEC. 223. ELIMINATION OF REDUCTION IN INFLATION ADJUSTMENTS FOR AMBULANCE
SERVICES.
Subparagraphs (A) and (B) of section 1834(l)(3) (42 U.S.C. 1395m(l)(3)(A))
are each amended by striking `reduced in the case of 2001 and 2002 by 1.0
percentage points' and inserting `increased in the case of 2001 by 1.0
percentage point'.
SEC. 224. STUDY AND REPORT ON THE COSTS OF RURAL AMBULANCE SERVICES.
(a) STUDY- The Secretary of Health and Human Services (in this section
referred to as the `Secretary'), in consultation with the Office of Rural
Health Policy, shall conduct a study of the means by which rural areas with
low population densities can be identified for the purpose of designating
areas in which the cost of providing ambulance services would be expected to
be higher than similar services provided in more heavily populated areas
because of low usage. Such study shall also include an analysis of the
additional costs of providing ambulance services in areas designated under the
previous sentence.
(b) REPORT- Not later than June 30, 2001, the Secretary shall submit a
report to Congress on the study conducted under subsection (a), together with
a regulation based on that study which adjusts the fee schedule payment rates
for ambulance services provided in low density rural areas based on the
increased cost of providing such services in such areas.
SEC. 225. INTERIM PAYMENTS FOR RURAL GROUND AMBULANCE SERVICES UNTIL
REGULATION IMPLEMENTED.
(a) INTERIM PAYMENTS- Section 1834(l) (42 U.S.C. 1395m(l)), as amended by
section 221, is amended by adding at the end the following new paragraph:
`(9) INTERIM PAYMENTS FOR RURAL GROUND AMBULANCE SERVICES- Until such
time as the fee schedule established under this subsection is modified by
the regulation described in section 224(b) of the Medicare, Medicaid, and
SCHIP Balanced Budget Refinement Act of 2000, the amount of payment under
this subsection for ground ambulance services provided in a rural area (as
defined in section 1886(d)(2)(D)) shall be the greater of--
`(A) the amount determined under the fee schedule established under
this subsection (without regard to any phase-in established pursuant to
paragraph (2)(E)); or
`(B) the amount that would have been paid for such services if the
amendments made by section 4531(b) of the Balanced Budget Act of 1997 had
not been enacted;
as adjusted for inflation in the manner described in paragraph (3)(B).
For purposes of this paragraph, an ambulance trip shall be considered to
have been provided in a rural area only if the transportation of the patient
originated in a rural area.'.
(b) CONFORMING AMENDMENTS- Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is
amended--
(1) in subparagraph (R)--
(A) by inserting `except as provided in subparagraph (T),' before
`with respect'; and
(B) by striking `and' at the end; and
(2) in subparagraph (S), by striking the semicolon at the end and
inserting `, and (T) with respect to ambulance services described in section
1834(l)(9), the amount paid shall be 80 percent of the lesser of the actual
charge for the services or the amount determined under such section;'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply with
respect to services provided on and after January 1, 2001.
SEC. 226. GAO STUDY AND REPORT ON THE COSTS OF EMERGENCY AND MEDICAL
TRANSPORTATION SERVICES.
(a) STUDY- The Comptroller General of the United States shall conduct a
study of the costs of providing emergency and medical transportation services
across the range of acuity levels of conditions for which such transportation
services are provided.
(b) REPORT- Not later than 18 months after the date of enactment of this
Act, the Comptroller General shall submit a report to the Secretary of Health
and Human Services and Congress on the study conducted under subsection (a),
together with recommendations for any changes in methodology or payment level
necessary to fairly compensate suppliers of emergency and medical
transportation services and to ensure the access of beneficiaries under the
medicare program under title XVIII of the Social Security Act (42 U.S.C. 1395
et seq.) to such services.
Subtitle D--Preventive Services
SEC. 231. ELIMINATION OF DEDUCTIBLES AND COINSURANCE FOR PREVENTIVE
BENEFITS.
(a) IN GENERAL- Section 1833 (42 U.S.C. 1395l) is amended by inserting
after subsection (o) the following new subsection:
`(p) DEDUCTIBLES AND COINSURANCE WAIVED FOR PREVENTIVE BENEFITS- The
Secretary may not require the payment of any deductible or coinsurance under
subsection (a) or (b) of any individual enrolled for coverage under this part
for any of the following preventive health care items and services:
`(1) Blood-testing strips, lancets, and blood glucose monitors for
individuals with diabetes described in section 1861(n).
`(2) Diabetes outpatient self-management training services (as defined
in section 1861(qq)(1)).
`(3) Pneumococcal, influenza, and hepatitis B vaccines and
administration described in section 1861(s)(10).
`(4) Screening mammography (as defined in section 1861(jj)).
`(5) Screening pap smear and screening pelvic exam (as defined in
paragraphs (1) and (2) of section 1861(nn), respectively).
`(6) Bone mass measurement (as defined in section 1861(rr)(1)).
`(7) Prostate cancer screening test (as defined in section
1861(oo)(1)).
`(8) Colorectal cancer screening test (as defined in section
1861(pp)(1)).'.
(b) WAIVER OF COINSURANCE- Section 1833(a)(1)(B) (42 U.S.C.
1395l(a)(1)(B)) is amended to read as follows: `(B) with respect to preventive
health care items and services described in subsection (p), the amounts paid
shall be 100 percent of the fee schedule or other basis of payment under this
title,'.
(c) WAIVER OF DEDUCTIBLE- Section 1833(b)(1) (42 U.S.C. 1395l(b)(1)) is
amended to read as follows: `(1) such deductible shall not apply with respect
to preventive health care items and services described in subsection (p),'.
(d) ADDING `LANCET' TO DEFINITION OF DME- Section 1861(n) (42 U.S.C.
1395x(n)) is amended by striking `blood-testing strips and blood glucose
monitors' and inserting `blood-testing strips, lancets, and blood glucose
monitors'.
(e) Conforming Amendments-
(1) ELIMINATION OF COINSURANCE FOR CLINICAL DIAGNOSTIC LABORATORY TESTS-
Paragraphs (1)(D)(i) and (2)(D)(i) of section 1833(a) (42 U.S.C. 1395l(a))
are each amended--
(A) by striking `basis or which' and inserting `basis, which';
and
(B) by inserting `, or which are described in subsection (p)' after
`critical access hospital'.
(2) ELIMINATION OF COINSURANCE FOR CERTAIN DME- Section 1834(a)(1)(A)
(42 U.S.C. 1395m(a)(1)(A)) is amended by inserting `(or 100 percent, in the
case of such an item described in section 1833(p))' after `80
percent'.
(3) ELIMINATION OF COINSURANCE FOR SCREENING MAMMOGRAPHY- Section
1834(c)(1)(C) (42 U.S.C. 1395m(c)(1)(C)) is amended by striking `80 percent'
and inserting `100 percent'.
(4) ELIMINATION OF DEDUCTIBLES AND COINSURANCE FOR COLORECTAL CANCER
SCREENING TESTS- Section 1834(d) (42 U.S.C. 1395m(d)) is amended--
(A) in paragraph (2)(C)--
(i) by striking clause (ii);
(ii) by striking `FACILITY PAYMENT LIMIT- ' and all that follows
through `Notwithstanding' and inserting `FACILITY PAYMENT LIMIT-
Notwithstanding'; and
(iii) by redesignating subclauses (I) and (II) as clauses (i) and
(ii), respectively; and
(B) in paragraph (3)(C)--
(i) by striking clause (ii); and
(ii) by striking `FACILITY PAYMENT LIMIT- ' and all that follows
through `Notwithstanding' and inserting `FACILITY PAYMENT LIMIT-
Notwithstanding'.
(f) EFFECTIVE DATE- The amendments made by this section shall apply to
items and services furnished on or after July 1, 2001.
SEC. 232. COUNSELING FOR CESSATION OF TOBACCO USE.
(a) COVERAGE- Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is amended--
(1) in subparagraph (S), by striking `and' at the end;
(2) in subparagraph (T), by inserting `and' at the end; and
(3) by adding at the end the following new subparagraph:
`(U) counseling for cessation of tobacco use (as defined in subsection
(uu)) for individuals who have a history of tobacco use;'.
(b) SERVICES DESCRIBED- Section 1861 (42 U.S.C. 1395x) is amended by
adding at the end the following new subsection:
`Counseling for Cessation of Tobacco Use
`(uu)(1) Except as provided in paragraph (2), the term `counseling for
cessation of tobacco use' means diagnostic, therapy, and counseling services
for cessation of tobacco use which are furnished--
`(A) by or under the supervision of a physician; or
`(B) by any other health care professional who is legally authorized to
furnish such services under State law (or the State regulatory mechanism
provided by State law) of the State in which the services are furnished, as
would otherwise be covered if furnished by a physician or as an incident to
a physician's professional service.
`(2) The term `counseling for cessation of tobacco use' does not include
coverage for drugs or biologicals that are not otherwise covered under this
title.'.
(c) ELIMINATION OF COST-SHARING-
(1) ELIMINATION OF COINSURANCE- Section 1833(a)(1) (42 U.S.C.
1395l(a)(1)), as amended by section 225(b), is amended--
(A) by striking `and' before `(T)'; and
(B) by inserting before the semicolon at the end the following: `, and
(U) with respect to counseling for cessation of tobacco use (as defined in
section 1861(uu)), the amount paid shall be 100 percent of the lesser of
the actual charge for the services or the amount determined by a fee
schedule established by the Secretary for the purposes of this
subparagraph'.
(2) ELIMINATION OF DEDUCTIBLE- The first sentence of section 1833(b) (42
U.S.C. 1395l(b)) is amended--
(A) by striking `and' before `(6)'; and
(B) by inserting before the period the following: `, and (7) such
deductible shall not apply with respect to counseling for cessation of
tobacco use (as defined in section 1861(uu))'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
services furnished on or after July 1, 2001.
SEC. 233. COVERAGE OF GLAUCOMA DETECTION TESTS.
(a) IN GENERAL- Section 1861 (42 U.S.C. 1395x), as amended by section 232,
is amended--
(1) in subsection (s)(2)--
(A) in subparagraph (T), by striking `and' at the end;
(B) in subparagraph (U), by inserting `and' at the end; and
(C) by adding at the end the following new subparagraph:
`(V) glaucoma detection tests (as defined in subsection (vv));';
and
(2) by adding at the end the following new subsection:
`Glaucoma Detection Tests
`(vv) The term `glaucoma detection test' means all of the following
conducted for the purpose of early detection of glaucoma:
`(1) A dilated eye examination with an intraocular pressure
measurement.
`(2) Direct ophthalmoscopy or slit-lamp biomicroscopic
examination.'.
(b) LIMITATION ON ELIGIBILITY AND FREQUENCY- Section 1834 (42 U.S.C.
1395m) is amended by adding at the end the following new subsection:
`(m) LIMITATION ON COVERAGE OF GLAUCOMA DETECTION TESTS-
`(1) IN GENERAL- Notwithstanding any other provision of this part, with
respect to expenses incurred for glaucoma detection tests (as defined in
section 1861(vv)), payment may be made only for glaucoma detection tests
conducted--
`(A) for individuals described in paragraph (2); and
`(B) consistent with the frequency permitted under paragraph
(3).
`(2) INDIVIDUALS ELIGIBLE FOR BENEFIT- Individuals described in this
paragraph are as follows:
`(A) Individuals who are 60 years of age or older and who have a
family history of glaucoma.
`(B) Other individuals who are at high risk (as determined by the
Secretary) of developing glaucoma.
`(A) IN GENERAL- Subject to subparagraph (B), payment may not be made
under this part for a glaucoma detection test performed for an individual
within 23 months following the month in which a glaucoma detection test
was performed under this part for the individual.
`(B) EXCEPTION- The Secretary may permit a glaucoma detection test to
be covered on a more frequent basis than that provided under subparagraph
(A) under such circumstances as the Secretary determines to be
appropriate.'.
(c) NO APPLICATION OF DEDUCTIBLE- Section 1833(b)(5) (42 U.S.C.
1395l(b)(5)) is amended by inserting `or with respect to glaucoma detection
tests (as defined in section 1861(vv))' after `1861(jj))'.
(d) CONFORMING AMENDMENTS- Section 1862(a) (42 U.S.C. 1395y(a)) is
amended--
(A) in subparagraph (H), by striking `and' at the end;
(B) in subparagraph (I), by striking the semicolon at the end and
inserting `, and'; and
(C) by adding at the end the following new subparagraph:
`(J) in the case of glaucoma detection tests (as defined in section
1861(vv)), which are furnished to an individual not described in paragraph
(2) of section 1834(m) or which are performed more frequently than is
covered under paragraph (3) of such section;'; and
(2) in paragraph (7), by striking `or (H)' and inserting `(H), or
(I)'.
(e) EFFECTIVE DATE- The amendments made by this section apply to tests
provided on or after July 1, 2001.
SEC. 234. MEDICAL NUTRITION THERAPY SERVICES FOR BENEFICIARIES WITH
DIABETES, A CARDIOVASCULAR DISEASE, OR A RENAL DISEASE.
(a) COVERAGE- Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)), as amended by
section 233(a), is amended--
(1) in subparagraph (U) by striking `and' at the end;
(2) in subparagraph (V) by inserting `and' at the end; and
(3) by adding at the end the following new subparagraph:
`(W) medical nutrition therapy services (as defined in subsection
(ww)(1)) in the case of a beneficiary with diabetes, a cardiovascular
disease (including congestive heart failure, arteriosclerosis,
hyperlipidemia, hypertension, and hypercholesterolemia), or a renal
disease;'.
(b) SERVICES DESCRIBED- Section 1861 (42 U.S.C. 1395x), as amended by
section 233(a), is amended by adding at the end the following new
subsection:
`Medical Nutrition Therapy Services; Registered Dietitian or Nutrition
Professional
`(ww)(1) The term `medical nutrition therapy services' means nutritional
diagnostic, therapy, and counseling services for the purpose of disease
management which are furnished by a registered dietitian or nutrition
professional (as defined in paragraph (2)) pursuant to a referral by a
physician (as defined in subsection (r)(1)).
`(2) Subject to paragraph (3), the term `registered dietitian or nutrition
professional' means an individual who--
`(A) holds a baccalaureate or higher degree granted by a regionally
accredited college or university in the United States (or an equivalent
foreign degree) with completion of the academic requirements of a program in
nutrition or dietetics, as accredited by an appropriate national
accreditation organization recognized by the Secretary for this
purpose;
`(B) has completed at least 900 hours of supervised dietetics practice
under the supervision of a registered dietitian or nutrition professional;
and
`(C)(i) is licensed or certified as a dietitian or nutrition
professional by the State in which the services are performed; or
`(ii) in the case of an individual in a State that does not provide for
such licensure or certification, meets such other criteria as the Secretary
establishes.
`(3) Subparagraphs (A) and (B) of paragraph (2) shall not apply in the
case of an individual who, as of the date of enactment of this subsection, is
licensed or certified as a dietitian or nutrition professional by the State in
which medical nutrition therapy services are performed.'.
(c) PAYMENT- Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)), as amended by
section 232(c)(1), is amended--
(1) by striking `and' before `(U)'; and
(2) by inserting before the semicolon at the end the following: `, and
(V) with respect to medical nutrition therapy services (as defined in
section 1861(ww)), the amount paid shall be 85 percent of the lesser of the
actual charge for the services or the amount determined under the fee
schedule established under section 1848(b) for the same services if
furnished by a physician'.
(d) EFFECTIVE DATE- The amendments made by this section apply to services
furnished on or after July 1, 2001.
SEC. 235. STUDIES ON PREVENTIVE INTERVENTIONS IN PRIMARY CARE FOR OLDER
AMERICANS.
(a) STUDIES- The Secretary of Health and Human Services, acting through
the United States Preventive Services Task Force, shall conduct a series of
studies designed to identify preventive interventions that can be delivered in
the primary care setting that are most valuable to older Americans.
(b) MISSION STATEMENT- The mission statement of the United States
Preventive Services Task Force is amended to include the evaluation of
services that are of particular relevance to older Americans.
(c) REPORT- Not later than 1 year after the date of enactment of this Act,
and annually thereafter, the Secretary of Health and Human Services shall
submit a report to Congress on the conclusions of the studies conducted under
subsection (a), together with recommendations for such legislation and
administrative actions as the Secretary considers appropriate.
SEC. 236. INSTITUTE OF MEDICINE 5-YEAR MEDICARE PREVENTION BENEFIT STUDY AND
REPORT.
(1) IN GENERAL- The Secretary of Health and Human Services shall
contract with the Institute of Medicine of the National Academy of Sciences
to conduct a comprehensive study of current literature and best practices in
the field of health promotion and disease prevention among medicare
beneficiaries including the issues described in paragraph (2) and to submit
the report described in subsection (b).
(2) ISSUES STUDIED- The study required under paragraph (1) shall include
an assessment of--
(A) whether each covered benefit is--
(i) medically effective; and
(ii) a cost-effective benefit or a cost-saving benefit;
(B) utilization of covered benefits (including any barriers to or
incentives to increase utilization); and
(C) quality of life issues associated with both health promotion and
disease prevention benefits covered under the medicare program and those
that are not covered under such program that would affect all medicare
beneficiaries.
(1) IN GENERAL- Not later than 5 years after the date of enactment of
this section, and every fifth year thereafter, the Institute of Medicine of
the National Academy of Sciences shall submit to the President a report that
contains a detailed statement of the findings and conclusions of the study
conducted under subsection (a) and the recommendations for legislation
described in paragraph (2).
(2) RECOMMENDATIONS FOR LEGISLATION- The Institute of Medicine of the
National Academy of Sciences, in consultation with the Partnership for
Prevention, shall develop recommendations in legislative form that--
(A) prioritize the preventive benefits under the medicare program;
and
(B) modify preventive benefits offered under the medicare program
based on the study conducted under subsection (a).
(c) TRANSMISSION TO CONGRESS-
(1) IN GENERAL- On the day on which the report described in subsection
(b) is submitted to the President, the President shall transmit the report
and recommendations in legislative form described in subsection (b)(2) to
Congress.
(2) DELIVERY- Copies of the report and recommendations in legislative
form required to be transmitted to Congress under paragraph (1) shall be
delivered--
(A) to both Houses of Congress on the same day;
(B) to the Clerk of the House of Representatives if the House is not
in session; and
(C) to the Secretary of the Senate if the Senate is not in
session.
(d) DEFINITIONS- In this section:
(1) COST-EFFECTIVE BENEFIT- The term `cost-effective benefit' means a
benefit or technique that has--
(A) been subject to peer review;
(B) been described in scientific journals; and
(C) demonstrated value as measured by unit costs relative to health
outcomes achieved.
(2) COST-SAVING BENEFIT- The term `cost-saving benefit' means a benefit
or technique that has--
(A) been subject to peer review;
(B) been described in scientific journals; and
(C) caused a net reduction in health care costs for medicare
beneficiaries.
(3) MEDICALLY EFFECTIVE- The term `medically effective' means, with
respect to a benefit or technique, that the benefit or technique has
been--
(A) subject to peer review;
(B) described in scientific journals; and
(C) determined to achieve an intended goal under normal programmatic
conditions.
(4) MEDICARE BENEFICIARY- The term `medicare beneficiary' means any
individual who is entitled to benefits under part A or enrolled under part B
of the medicare program, including any individual enrolled in a
Medicare+Choice plan offered by a Medicare+Choice organization under part C
of such program.
(5) MEDICARE PROGRAM- The term `medicare program' means the health
benefits program under title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.).
SEC. 237. FAST-TRACK CONSIDERATION OF PREVENTION BENEFIT LEGISLATION.
(a) RULES OF HOUSE OF REPRESENTATIVES AND SENATE- This section is enacted
by Congress--
(1) as an exercise of the rulemaking power of the House of
Representatives and the Senate, respectively, and is deemed a part of the
rules of each House of Congress, but--
(A) is applicable only with respect to the procedure to be followed in
that House of Congress in the case of an implementing bill (as defined in
subsection (d)); and
(B) supersedes other rules only to the extent that such rules are
inconsistent with this section; and
(2) with full recognition of the constitutional right of either House of
Congress to change the rules (so far as relating to the procedure of that
House of Congress) at any time, in the same manner and to the same extent as
in the case of any other rule of that House of Congress.
(b) INTRODUCTION AND REFERRAL-
(A) IN GENERAL- Subject to paragraph (2), on the day on which the
President transmits the report pursuant to section 236(c) to the House of
Representatives and the Senate, the recommendations in legislative form
transmitted by the President with respect to such report shall be
introduced as a bill (by request) in the following manner:
(i) HOUSE OF REPRESENTATIVES- In the House of Representatives, by
the Majority Leader, for himself and the Minority Leader, or by Members
of the House of Representatives designated by the Majority Leader and
Minority Leader.
(ii) SENATE- In the Senate, by the Majority Leader, for himself and
the Minority Leader, or by Members of the Senate designated by the
Majority Leader and Minority Leader.
(B) SPECIAL RULE- If either House of Congress is not in session on the
day on which such recommendations in legislative form are transmitted, the
recommendations in legislative form shall be introduced as a bill in that
House of Congress, as provided in subparagraph (A), on the first day
thereafter on which that House of Congress is in session.
(2) REFERRAL- Such bills shall be referred by the presiding officers of
the respective Houses to the appropriate committee, or, in the case of a
bill containing provisions within the jurisdiction of 2 or more committees,
jointly to such committees for consideration of those provisions within
their respective jurisdictions.
(c) CONSIDERATION- After the recommendations in legislative form have been
introduced as a bill and referred under subsection (b), such implementing bill
shall be considered in the same manner as an implementing bill is considered
under subsections (d), (e), (f), and (g) of section 151 of the Trade Act of
1974 (19 U.S.C. 2191).
(d) IMPLEMENTING BILL DEFINED- In this section, the term `implementing
bill' means only the recommendations in legislative form of the Institute of
Medicine of the National Academy of Sciences described in section 236(b)(2),
transmitted by the President to the House of Representatives and the Senate
under section 236(c), and introduced and referred as provided in subsection
(b) as a bill of either House of Congress.
(e) COUNTING OF DAYS- For purposes of this section, any period of days
referred to in section 151 of the Trade Act of 1974 shall be computed by
excluding--
(1) the days on which either House of Congress is not in session because
of an adjournment of more than 3 days to a day certain or an adjournment of
Congress sine die; and
(2) any Saturday and Sunday, not excluded under paragraph (1), when
either House is not in session.
Subtitle E--Other Services
SEC. 241. REVISION OF MORATORIUM IN CAPS FOR THERAPY SERVICES.
(a) EXTENSION OF MORATORIUM- Section 1833(g)(4) (42 U.S.C. 1395l(g)(4)) is
amended by striking `during 2000 and 2001' and inserting `during the period
beginning on January 1, 2000, and ending on the date that is 18 months after
the date the Secretary submits the report required under section 4541(d)(2) of
the Balanced Budget Act of 1997 to Congress'.
(b) EXTENSION OF REPORTING DATE- Section 4541(d)(2) of BBA (42 U.S.C.
1395l note), as amended by section 221(c) of BBRA (113 Stat. 1501A-351), is
amended by striking `January 1, 2001' and inserting `January 1, 2002'.
SEC. 242. REVISION OF COVERAGE OF IMMUNOSUPPRESSIVE DRUGS.
(1) IN GENERAL- Section 1861(s)(2)(J) (42 U.S.C. 1395x(s)(2)(J)) is
amended to read as follows:
`(J) prescription drugs used in immunosuppressive therapy
furnished--
`(i) on or after the date of enactment of the Medicare, Medicaid, and
SCHIP Balanced Budget Refinement Act of 2000 and before January 1, 2004,
to an individual who has received an organ transplant; and
`(ii) on or after January 1, 2004, to an individual who receives an
organ transplant for which payment is made under this title, but only in
the case of drugs furnished within 36 months after the date of the
transplant procedure.'.
(2) CONFORMING AMENDMENTS-
(A) EXTENDED COVERAGE- Section 1832 (42 U.S.C. 1395k) is
amended--
(i) by striking subsection (b); and
(ii) by redesignating subsection (c) as subsection (b).
(B) PASS-THROUGH; REPORT- Subsections (c) and (d) of section 227 of
BBRA (113 Stat. 1501A-355) are repealed.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
to drugs furnished on or after the date of enactment of this Act.
(b) EXTENSION OF CERTAIN SECONDARY PAYER REQUIREMENTS- Section
1862(b)(1)(C) (42 U.S.C. 1395y(b)(1)(C)) is amended by adding at the end the
following: `With regard to immunosuppressive drugs furnished on or after the
date of enactment of the Medicare, Medicaid, and SCHIP Balanced Budget
Refinement Act of 2000 and before January 1, 2004, this subparagraph shall be
applied without regard to any time limitation.'.
SEC. 243. STATE ACCREDITATION OF DIABETES SELF-MANAGEMENT TRAINING
PROGRAMS.
Section 1861(qq)(2) of the Social Security Act (42 U.S.C. 1395xx(qq)(2))
is amended--
(1) in the matter preceding subparagraph (A), by striking `paragraph
(1)--' and inserting `paragraph (1):';
(2) in subparagraph (A)--
(A) by striking `a `certified provider' and inserting `A `certified
provider'; and
(B) by striking `; and' and inserting a period; and
(3) in subparagraph (B)--
(A) by striking `a physician, or such other individual' and inserting
`(i) A physician, or such other individual';
(B) by inserting `(I)' before `meets applicable standards';
(C) by inserting `(II)' before `is recognized';
(D) by inserting `, or by a program described in clause (ii),' after
`recognized by an organization that represents individuals (including
individuals under this title) with diabetes'; and
(E) by adding at the end the following new clause:
`(ii) Notwithstanding any reference to `a national accreditation body'
in section 1865(b), for purposes of clause (i), a program described in this
clause is a program operated by a State for the purposes of accrediting
diabetes self-management training programs, if the Secretary determines that
such State program has established quality standards that meet or exceed the
standards established by the Secretary under clause (i) or the standards
originally established by the National Diabetes Advisory Board and
subsequently revised as described in clause (i).'.
SEC. 244. ELIMINATION OF REDUCTION IN PAYMENT AMOUNTS FOR DURABLE MEDICAL
EQUIPMENT AND OXYGEN AND OXYGEN EQUIPMENT.
(a) UPDATE FOR COVERED ITEMS- Section 1834(a)(14)(C) (42 U.S.C.
1395m(a)(14)(C)) is amended by striking `through 2002' and inserting `through
2000'.
(b) ORTHOTICS AND PROSTHETICS- Section 1834(h)(4)(A)(v) (42 U.S.C.
1395m(h)(4)(A)(v)) is amended by striking `through 2002' and inserting
`through 2000'.
(c) PARENTERAL AND ENTERAL NUTRIENTS, SUPPLIES, AND EQUIPMENT- Section
4551(b) of BBA (42 U.S.C. 1395m note) is amended by striking `through 2002'
and inserting `through 2000'.
(d) OXYGEN AND OXYGEN EQUIPMENT- Section 1834(a)(9)(B) (42 U.S.C.
1395m(a)(9)(B)) is amended--
(1) in clause (v), by striking `and' at the end;
(A) by striking `each subsequent year' and inserting `2000';
and
(B) by striking the period at the end and inserting `; and';
and
(3) by adding at the end the following new clause:
`(vii) for 2001 and each subsequent year, the amount determined
under this subparagraph for the preceding year increased by the covered
item update for such subsequent year.'.
(e) CONFORMING AMENDMENT- Section 228 of BBRA (113 Stat. 1501A-356) is
repealed.
SEC. 245. STANDARDS REGARDING PAYMENT FOR CERTAIN ORTHOTICS AND
PROSTHETICS.
(1) IN GENERAL- Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)) is amended by
adding at the end the following:
`(F) ESTABLISHMENT OF STANDARDS FOR CERTAIN ITEMS-
`(i) IN GENERAL- No payment shall be made for an applicable item
unless such item is provided by a qualified practitioner or a qualified
supplier under the system established by the Secretary under clause
(iii). For purposes of the preceding sentence, if a qualified
practitioner or a qualified supplier contracts with an entity to provide
an applicable item, then no payment shall be made for such item unless
the entity is also a qualified supplier.
`(ii) DEFINITIONS- In this subparagraph--
`(I) APPLICABLE ITEM- The term `applicable item' means orthotics
and prosthetics that require education, training, and experience to
custom fabricate such item. Such term does not include shoes and shoe
inserts.
`(II) QUALIFIED PRACTITIONER- The term `qualified practitioner'
means a physician or health professional who meets any of the
following requirements:
`(aa) The physician or health professional is specifically trained
and educated to provide or manage the provision of custom-designed, fabricated,
modified, and fitted orthotics and prosthetics, and is either certified by the
American Board for Certification in Orthotics and Prosthetics, Inc., certified
by the Board for Orthotist/Prosthetist Certification, or credentialed and
approved by a program that the Secretary determines, in consultation with
appropriate experts in orthotics and prosthetics, has training and education
standards that are necessary to provide applicable items.
`(bb) The physician or health professional is licensed in orthotics
or prosthetics by the State in which the applicable item is supplied, but only
if the Secretary determines that the mechanisms used by the State to provide
such licensure meet standards determined appropriate by the Secretary.
`(cc) The physician or health professional has completed at least 10
years practice in the provision of applicable items. A physician or health
professional may not qualify as a qualified practitioner under the preceding
sentence with respect to an applicable item if the item was provided on or after
January 1, 2005.
`(III) QUALIFIED SUPPLIER- The term `qualified supplier' means any
entity that is--
`(aa) accredited by the American Board for Certification in Orthotics
and Prosthetics, Inc. or the Board for Orthotist/Prosthetist Certification;
or
`(bb) accredited and approved by a program that the Secretary
determines has accreditation and approval standards that are essentially
equivalent to those of such Board.
`(iii) SYSTEM- The Secretary, in consultation with appropriate
experts in orthotics and prosthetics, shall establish a system under
which the Secretary shall--
`(I) determine which items are applicable items and formulate a
list of such items;
`(II) review the applicable items billed under the coding system
established under this title; and
`(III) limit payment for applicable items pursuant to clause
(i).'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to
items provided on or after January 1, 2003.
(b) REVISION OF DEFINITION OF ORTHOTICS-
(1) IN GENERAL- Section 1861(s)(9) (42 U.S.C. 1395x(s)(9)) is amended by
inserting `(including such braces that are used in conjunction with, or as
components of, other medical or non-medical equipment when provided by a
qualified practitioner (as defined in subclause (II) of section
1834(h)(1)(F))) or a qualified supplier (as defined in subclause (III) of
such section)' after `braces'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall apply to
items provided on or after January 1, 2003.
SEC. 246. NATIONAL LIMITATION AMOUNT EQUAL TO 100 PERCENT OF NATIONAL MEDIAN
FOR NEW PAP SMEAR TECHNOLOGIES AND OTHER NEW CLINICAL LABORATORY TEST
TECHNOLOGIES.
Section 1833(h)(4)(B)(viii) (42 U.S.C. 1395l(h)(4)(B)(viii)) is amended by
inserting before the period at the end the following: `(or 100 percent of such
median in the case of a clinical diagnostic laboratory test performed on or
after January 1, 2001, that the Secretary determines is a new test for which
no limitation amount has previously been established under this
subparagraph)'.
SEC. 247. INCREASED MEDICARE PAYMENTS FOR CERTIFIED NURSE-MIDWIFE
SERVICES.
(a) AMOUNT OF PAYMENT- Section 1833(a)(1)(K) (42 U.S.C. 1395l(a)(1)(K)) is
amended by striking `65 percent of the prevailing charge that would be allowed
for the same service performed by a physician, or, for services furnished on
or after January 1, 1992, 65 percent' and inserting `85 percent'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
services furnished on or after January 1, 2001.
SEC. 248. PAYMENT FOR ADMINISTRATION OF DRUGS.
(a) REVIEW OF CHEMOTHERAPY ADMINISTRATION PRACTICE EXPENSES RVUS- The
Secretary of Health and Human Services shall review the resource-based
practice expense component of relative value units under the physician fee
schedule under section 1848 of the Social Security Act (42 U.S.C. 1395w-4) for
chemotherapy administration services to determine if such units should be
increased.
(b) MORE ACCURATE CHEMOTHERAPY DRUG PAYMENTS TIED TO INCREASES IN
CHEMOTHERAPY ADMINISTRATION PAYMENTS- If the Secretary of Health and Human
Services determines, as a result of the review under subsection (a), that the
resource-based practice expense relative value units for chemotherapy
administration services should be increased, the Secretary--
(1) may implement such increases for such services, but only if the
Secretary simultaneously implements more accurate average wholesale prices
for chemotherapy drugs (but in no case shall such simultaneous
implementation occur prior to January 1, 2002); and
(2) if the Secretary implements such increases for such services, shall
do so without taking into account the requirement under the physician fee
schedule under section 1848(c)(2)(B)(ii)(II) of the Social Security Act (42
U.S.C. 1395w-4(c)(2)(B)(ii)(II)).
(c) BLOOD CLOTTING DRUG-RELATED ACTIVITIES-
(1) COVERAGE- Section 1861(s)(2)(I) (42 U.S.C. 1395x(s)(2)(I)) is
amended--
(A) by striking `and' after `supervision,'; and
(B) by inserting the following before the semicolon: `, and the costs
(pursuant to section 1834(n)) incurred by suppliers of such
factors'.
(2) PAYMENTS- Section 1834 (42 U.S.C. 1395m), as amended by section
233(b), is amended by adding at the end the following new subsection:
`(n) PAYMENT FOR BLOOD CLOTTING DRUG-RELATED ACTIVITIES-
`(1) IN GENERAL- The Secretary shall make payments in accordance with
paragraph (2) to suppliers of blood clotting factors (as described in
section 1861(s)(2)(I)) to cover the costs (such as shipping, storage,
inventory control, or other costs specified by the Secretary) incurred by
such suppliers in furnishing such factors to individuals enrolled under this
part.
`(2) PAYMENT AMOUNT- The amount of payment for furnishing such blood
clotting factors (as so described) shall be an amount equal to 80 percent of
the lesser of--
`(A) the actual charge for the furnishing of such factors; or
`(B) an amount equal to 10 cents (or such other amount determined
appropriate by the Secretary) per unit of such factor
furnished.'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
to blood clotting factors (as described in section 1861(s)(2)(I) of the
Social Security Act (42 U.S.C. 1395x(s)(2)(I))) furnished on or after the
date that the Secretary of Health and Human Services implements more
accurate average wholesale prices for such factors.
SEC. 249. MEDPAC STUDY ON IN-HOME INFUSION THERAPY NURSING SERVICES.
(a) STUDY- The Medicare Payment Advisory Commission established under
section 1805 of the Social Security Act (42 U.S.C. 1395b-6) (in this section
referred to as `MedPAC') shall conduct a study on the provision of in-home
infusion therapy nursing services, including a review of any documentation of
clinical efficacy for those services and any costs associated with providing
those services.
(b) REPORT- Not later than 18 months after the date of enactment of this
Act, MedPAC shall submit a report to the Secretary of Health and Human
Services and Congress on the study and review conducted under subsection (a)
together with recommendations regarding the establishment of a payment
methodology for in-home infusion therapy nursing services that ensures the
continuing access of beneficiaries under the medicare program under title
XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) to those
services.
SEC. 250. COVERAGE OF VISION REHABILITATION SERVICES.
(a) COVERAGE- Section 1861(s)(2) (42 U.S.C. 1395x(s)(2)) is amended--
(1) by striking `and' at the end of subparagraph (S);
(2) by striking the period at the end of (T) and inserting `; and';
and
(3) by adding at the end the following new subparagraph:
`(U) vision rehabilitation services (as defined in subsection
(uu)(1)).'.
(b) SERVICES DESCRIBED- Section 1861 (42 U.S.C. 1395x), as amended by
sections 232, 233(a), and 234(b), is further amended by adding at the end the
following new subsection:
`Vision Rehabilitation Services; Vision Rehabilitation Professional
`(xx)(1) The term `vision rehabilitation services' means a program of
restorative services (as determined by the Secretary in regulations) furnished
by a vision rehabilitation professional (as defined in paragraph (2)) to an
individual diagnosed with a vision impairment (as defined in paragraph (6)) to
promote the independence and safety of the individual notwithstanding such
impairment, such services furnished pursuant to a plan of care established by
a physician (as defined in paragraph (1) or (4) of subsection (r)).
`(2) The term `vision rehabilitation professional' means any of the
following individuals:
`(A) An orientation and mobility specialist (as defined in paragraph
(3)).
`(B) A rehabilitation teacher (as defined in paragraph (4)).
`(C) A low vision therapist (as defined in paragraph (5)).
`(3)(A) The term `orientation and mobility specialist' means an
individual--
`(i) who holds a baccalaureate or higher degree granted by a regionally
accredited college or university in the United States (or an equivalent
foreign degree) in rehabilitation, special education, or a health field with
a university-based program of study and clinical experience in orientation
and mobility (as defined in subparagraph (B)); and
`(ii)(I) who is licensed or certified as an orientation and mobility
specialist by the State in which the orientation and mobility services are
performed; or
`(II) in the case of an individual furnishing orientation and mobility
services in a State which does not provide for licensure or
certification--
`(aa) who has successfully completed 350 hours of clinical practicum
under the supervision of an orientation and mobility specialist holding a
master's degree or higher, and who has furnished not less than 9 months of
supervised full-time orientation and mobility services after obtaining a
degree described in clause (i); and
`(bb) who has successfully completed a national examination in
orientation and mobility administered by a national organization
specifically dedicated to performing credentialing of orientation and
mobility specialists that is recognized by the Secretary, and who meets
such other criteria as the Secretary establishes.
`(B) The term `orientation and mobility' means the following services:
`(i) Assessment of needs of an individual who has a vision impairment
for skills training in methods of safe movement and in strategies to gather
required environmental and spatial information.
`(ii) Development of appropriate integrated service plans tailored to
meet such needs identified pursuant to an assessment under clause (i).
`(iii) Provision of training in and utilization of--
`(I) equipment and adaptive devices intended and designed for use by
such an individual; and
`(II) specialized techniques adapted for such individuals, including
orientation, sensory development, systems of safe movement (including long
cane techniques), resource identification, professional referrals (as
appropriate), and, in applied settings reinforcing instruction for the use
of optical devices as prescribed by optometrists and
ophthalmologists.
`(iv) Evaluation of the progress in performance of such an individual
receiving training under clause (iii).
`(4)(A) The term `rehabilitation teacher' means an individual--
`(i) who holds a baccalaureate or higher degree granted by a regionally
accredited college or university in the United States (or an equivalent
foreign degree) in rehabilitation, special education, or a health field with
a university-based program of study and clinical experience in
rehabilitation teaching (as defined in subparagraph (B)); and
`(ii)(I) who is licensed or certified as a rehabilitation teacher by the
State in which the rehabilitation teaching services are performed; or
`(II) in the case of an individual furnishing rehabilitation teaching
services in a State which does not provide for licensure or
certification--
`(aa) who has successfully completed 350 hours of clinical practicum
under the supervision of a rehabilitation teacher holding a master's
degree or higher, and who has furnished not less than 9 months of
supervised full-time rehabilitation teaching services after obtaining a
degree described in clause (i); and
`(bb) who has successfully completed a national examination in
rehabilitation teaching administered by a national organization
specifically dedicated to performing credentialing of rehabilitation
teachers that is recognized by the Secretary, and who meets such other
criteria as the Secretary establishes.
`(B) The term `rehabilitation teaching' means the following services:
`(i) Assessment of needs of an individual with a vision impairment for
skills training in independent living and communications.
`(ii) Development of appropriate integrated service plans tailored to
meet such needs identified pursuant to an assessment under clause (i).
`(iii) Provision of training in, and utilization of--
`(I) equipment and adaptive devices intended and designed for use by
such an individual, including, in applied settings, reinforcing
instruction for the use of optical devices as prescribed by optometrists
or ophthalmologists; and
`(II) specialized techniques adapted for such an individual, including
braille and other communication skills, personal self-care skills, and
home management skills.
`(iv) Evaluation of the progress in performance of such an individual
receiving training under clause (iii).
`(5)(A) The term `low vision therapist' means an individual--
`(I) a baccalaureate or higher degree granted by a regionally
accredited college or university in the United States (or an equivalent
foreign degree) in rehabilitation, special education, or a health field
with a university-based program of study and clinical experience in
orientation and mobility, rehabilitation teaching, or teaching the
visually impaired;
`(II) a master's of science degree granted by a regionally accredited
college or university in the United States (or an equivalent foreign
degree) in low vision rehabilitation; or
`(III) a baccalaureate or higher degree granted by a regionally
accredited college or university in the United States (or an equivalent
foreign degree) in occupational therapy;
`(ii) who after obtaining a degree described in clause (i) has performed
at least 2 years of low vision therapy (as defined in subparagraph (B))
under the supervision of an optometrist or ophthalmologist in an appropriate
setting (as determined by the Secretary); and
`(iii)(I) who is licensed or certified as a low vision therapist by the
State in which the services are performed; or
`(II) in the case of an individual in a State which does not provide for
licensure or certification, who has successfully completed a national
examination in low vision therapy administered by a national organization
specifically dedicated to performing credentialing of low vision therapists
that is recognized by the Secretary, and who meets such other criteria as
the Secretary establishes.
`(B) The term `low vision therapy' means the following services furnished
to an individual and based upon the clinical findings of a low vision
examination conducted on the individual by an optometrist or an
ophthalmologist:
`(i) Assessment of the performance of an individual diagnosed with a
vision impairment with prescribed optical and adaptive nonoptical
devices.
`(ii) In order to promote safety and maximize use of visual ability of
the individual diagnosed with vision impairment, the provision of training
in and use of the following:
`(I) Visual abilities in daily living and other tasks.
`(II) Optical devices prescribed by an optometrist or
ophthalmologist.
`(III) Adaptive non-optical and electronic devices.
`(IV) Environmental cues and modifications.
`(iii) Evaluation of the progress in performance of such an individual
receiving the training and use under clause (ii).
`(6)(A) The term `vision impairment' means that an individual is blind or
partially sighted.
`(B) The term `blind' means blind within the meaning of `blindness' as
that term is defined in section 216(i)(1).
`(C) The term `partially sighted' means functional vision impairment that
constitutes a significant limitation of visual capability resulting from
disease, trauma, or congenital or degenerative condition, that cannot be fully
ameliorated by standard refractive correction, medication, or surgery, and
that is manifested by one or more of the following:
`(i) Insufficient visual resolution.
`(ii) Inadequate field of vision.
`(iii) Reduced peak contrast sensitivity.'.
(c) PAYMENT- Section 1833(a)(1) (42 U.S.C. 1395l(a)(1)) is amended--
(1) by striking `and' before `(S)'; and
(2) by inserting before the semicolon at the end the following: `, and
(T) with respect to vision rehabilitation services (as defined in section
1861(xx)) furnished by a vision rehabilitation professional, the amount paid
shall be 80 percent of the lesser of the actual charge for the services or
85 percent of the amount determined under the fee schedule established under
section 1848(b) for the same services if furnished by a physician'.
(d) EFFECTIVE DATE- The amendments made by this section shall apply to
services furnished on or after the date of the enactment of this Act.
(e) CONSULTATION- The Secretary shall consult with the National Vision
Rehabilitation Cooperative, the Association for Education and Rehabilitation
of the Blind and Visually Impaired, the Academy for Certification of Vision
Rehabilitation and Education Professionals, and such other qualified
professional and consumer organizations as the Secretary determines
appropriate in promulgating regulations to carry out this Act.
SEC. 251. LIMITING MEDICARE LATE ENROLLMENT PENALTY TO 10 PERCENT AND TWICE
THE PERIOD OF NO ENROLLMENT.
(a) IN GENERAL- The first sentence of section 1839(b) (42 U.S.C. 1395r(b))
is amended by striking `10 percent of the monthly premium so determined for
each full 10 months' and inserting `10 percent of the monthly premium so
determined for premiums paid during a period equal to twice the number of
months in each of the full periods of 12 months'.
(b) CONFORMING AMENDMENTS-
(1) Section 1818(c) (42 U.S.C. 1395i-2(c)) is amended--
(A) by striking paragraph (6); and
(B) by redesignating paragraphs (7) through (9) as paragraphs (6)
through (8), respectively.
(2) Section 1818(g)(2)(B) (42 U.S.C. 1395i-2(g)(2)(B)) is amended by
striking `by substituting' and all that follows and inserting the following:
`by substituting `section 1818 (without any increase resulting from the
application of section 1839(b) to such section)' for `section 1839 (without
any increase under subsection (b) thereof)'.'.
(1) The amendments made by this section shall apply to premiums paid for
months beginning after the end of the 90-day period beginning on the date of
the enactment of this Act.
(2) In applying these amendments, months (before, during, or after the
month in which this Act is enacted) in which an individual was or is
required to pay an increased premium shall be taken into account in
determining the month in which the premium will no longer be subject to an
increase.
TITLE III--PROVISIONS RELATING TO PARTS A AND B
Subtitle A--Home Health Services
SEC. 301. ELIMINATION OF 15 PERCENT REDUCTION IN PAYMENT RATES UNDER THE
PROSPECTIVE PAYMENT SYSTEM FOR HOME HEALTH SERVICES.
(a) IN GENERAL- Section 1895(b)(3)(A) (42 U.S.C. 1395fff(b)(3)(A)) is
amended to read as follows:
`(A) INITIAL BASIS- Under such system the Secretary shall provide for
computation of a standard prospective payment amount (or amounts). Such
amount (or amounts) shall initially be based on the most current audited
cost report data available to the Secretary and shall be computed in a
manner so that the total amounts payable under the system for the 12-month
period beginning on the date the Secretary implements the system shall be
equal to the total amount that would have been made if the system had not
been in effect and if section 1861(v)(1)(L)(ix) had not been enacted. Each
such amount shall be standardized in a manner that eliminates the effect
of variations in relative case mix and area wage adjustments among
different home health agencies in a budget neutral manner consistent with
the case mix and wage level adjustments provided under paragraph (4)(A).
Under the system, the Secretary may recognize regional differences or
differences based upon whether or not the services or agency are in an
urbanized area.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
as if included in the enactment of BBRA.
SEC. 302. ADDITIONAL PAYMENTS FOR OUTLIERS.
(a) IN GENERAL- Section 1895(b)(5) (42 U.S.C. 1395fff(b)(5)) is
amended--
(1) by striking `OUTLIERS- The Secretary' and inserting the following
(and conforming the indentation of the succeeding matter accordingly):
`OUTLIERS-
`(A) IN GENERAL- The Secretary'; and
(2) by adding at the end the following new subparagraph:
`(B) TEMPORARY ADDITIONAL PAYMENTS FOR OUTLIERS- For the purposes
described in the first sentence of subparagraph (A), there are authorized
to be appropriated from the trust funds (as defined in section 1896(a)(8))
in appropriate part, as determined by the Secretary, for each of fiscal
years 2001 through 2005 an amount equal to $500,000,000. Such amounts
shall be in addition to amounts available for payment under this section
and shall not result in a reduction of the standard prospective payment
amount (or amounts). In making payments under this subparagraph, the
Secretary shall use a loss-sharing ratio of 90 percent.'.
(b) CONFORMING AMENDMENT- Section 1895(b)(3)(C) (42 U.S.C.
1395fff(b)(3)(C)) is amended by striking `paragraph (5)' and inserting
`paragraph (5)(A)'.
SEC. 303. ADDITIONAL PAYMENTS UNDER THE PROSPECTIVE PAYMENT SYSTEM FOR
SERVICES FURNISHED IN RURAL AREAS AND SECURITY SERVICES.
(a) INCREASE IN PAYMENT RATES FOR RURAL AGENCIES- Section 1895(b) (42
U.S.C. 1395fff(b)) is amended by adding at the end the following new
paragraph:
`(7) ADDITIONAL PAYMENT AMOUNT FOR SERVICES FURNISHED IN RURAL AREAS- In
the case of home health services furnished in a rural area (as defined in
section 1886(d)(2)(D)), notwithstanding any other provision of this
subsection, the amount of payment for such services is equal to 110 percent
of the payment amount otherwise made under this section (but for this
paragraph) for services furnished in a rural area.'.
(b) ADDITIONAL PAYMENT FOR SECURITY SERVICES- Section 1895(b) (42 U.S.C.
1395fff(b)(3)), as amended by subsection (a), is further amended by adding at
the end the following paragraph:
`(8) ADDITIONAL PAYMENT FOR SECURITY SERVICES- The Secretary shall
provide for an addition or adjustment to the payment amount otherwise made
under this section for the reasonable cost (as defined in section
1861(v)(1)(A)) of furnishing protective services to individuals furnishing
home health services under this title in areas where such individuals are at
risk of physical harm, as determined by the Secretary.'.
(c) INAPPLICABILITY OF ADJUSTMENTS FOR BUDGET NEUTRALITY- Section
1895(b)(3) (42 U.S.C. 1395fff(b)(3)) is amended by adding at the end the
following new subparagraph:
`(D) NO ADJUSTMENT FOR ADDITIONAL PAYMENTS FOR RURAL SERVICES AND
SECURITY SERVICES- The Secretary shall not reduce the standard prospective
payment amount (or amounts) under this paragraph applicable to home health
services furnished during a period to offset the increase in payments
resulting from the application of paragraph (7) (relating to services
furnished in rural areas) and paragraph (8) (relating to costs of security
services).'.
(d) EFFECTIVE DATE- The amendments made by this section apply with respect
to items and services furnished on or after October 1, 2000.
SEC. 304. EXCLUSION OF CERTAIN NONROUTINE MEDICAL SUPPLIES UNDER THE PPS FOR
HOME HEALTH SERVICES.
(1) IN GENERAL- Section 1895 (42 U.S.C. 1395fff) is amended by adding at
the end the following new subsection:
`(e) EXCLUSION OF NONROUTINE MEDICAL SUPPLIES-
`(1) IN GENERAL- Notwithstanding the preceding provisions of this
section, in the case of all nonroutine medical supplies (as defined by the
Secretary) furnished by a home health agency during a year (beginning with
2001) for which payment is otherwise made on the basis of the prospective
payment amount under this section, payment under this section shall be based
instead on the lesser of--
`(A) the actual charge for the nonroutine medical supply; or
`(B) the amount determined under the fee schedule established by the
Secretary for purposes of making payment for such items under part B for
nonroutine medical supplies furnished during that year.
`(2) BUDGET NEUTRALITY ADJUSTMENT- The Secretary shall provide for an
appropriate proportional reduction in payments under this section so that
beginning with fiscal year 2001, the aggregate amount of such reductions is
equal to the aggregate increase in payments attributable to the exclusion
effected under paragraph (1).'.
(2) CONFORMING AMENDMENT- Section 1895(b)(1) (42 U.S.C. 1395fff(b)(1))
is amended by striking `The Secretary' and inserting `Subject to subsection
(e), the Secretary'.
(3) EFFECTIVE DATE- The amendments made by this subsection shall apply
to supplies furnished on or after January 1, 2001.
(b) EXCLUSION FROM CONSOLIDATED BILLING-
(1) IN GENERAL- For items provided during the applicable period, the
Secretary of Health and Human Services shall administer the medicare program
under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) as
if--
(A) section 1842(b)(6)(F) of such Act (42 U.S.C. 1395u(b)(6)(F)) was
amended by striking `(including medical supplies described in section
1861(m)(5), but excluding durable medical equipment to the extent provided
for in such section)' and inserting `(excluding medical supplies and
durable medical equipment described in section 1861(m)(5))'; and
(B) section 1862(a)(21) of such Act (42 U.S.C. 1395y(a)(21)) was
amended by striking `(including medical supplies described in section
1861(m)(5), but excluding durable medical equipment to the extent provided
for in such section)' and inserting `(excluding medical supplies and
durable medical equipment described in section 1861(m)(5))'.
(2) APPLICABLE PERIOD DEFINED- For purposes of paragraph (1), the term
`applicable period' means the period beginning on January 1, 2001, and
ending on the later of--
(A) the date that is 18 months after the date of enactment of this
Act; or
(B) the date determined appropriate by the Secretary of Health and
Human Services.
(c) STUDY ON EXCLUSION OF CERTAIN NONROUTINE MEDICAL SUPPLIES UNDER THE
PPS FOR HOME HEALTH SERVICES-
(1) STUDY- The Secretary of Health and Human Services (in this
subsection referred to as the `Secretary') shall conduct a study to identify
any nonroutine medical supply that may be appropriately and cost-effectively
excluded from the prospective payment system for home health services under
section 1895 of the Social Security Act (42 U.S.C. 1395fff). Specifically,
the Secretary shall consider whether wound care and ostomy supplies should
be excluded from such prospective payment system.
(2) REPORT- Not later than 18 months after the date of enactment of this
Act, the Secretary shall submit to the committees of jurisdiction of the
House of Representatives and the Senate a report on the study conducted
under paragraph (1), including a list of any nonroutine medical supplies
that should be excluded from the prospective payment system for home health
services under section 1895 of the Social Security Act (42 U.S.C.
1395fff).
(d) EXCLUSION OF OTHER NONROUTINE MEDICAL SUPPLIES- Upon submission of the
report under subsection (c)(2), the Secretary shall (if necessary) revise the
definition of nonroutine medical supply, as defined for purposes of section
1895(e) (as added by subsection (a)), based on the list of nonroutine medical
supplies included in such report.
SEC. 305. CLARIFICATION OF THE HOMEBOUND DEFINITION FOR THE HOME HEALTH
BENEFIT.
(a) IN GENERAL- Sections 1814(a) and 1835(a) (42 U.S.C. 1395f(a) and
1395n(a)) are each amended--
(1) in the last sentence, by striking `, and that absences of the
individual from home are infrequent or of relatively short duration, or are
attributable to the need to receive medical treatment'; and
(2) by adding at the end the following new sentences: `Any absence of an
individual from the home attributable to the need to receive health care
treatment, including regular absences for the purpose of participating for
therapeutic, psychosocial, or medical treatment in an adult day-care program
that is licensed or certified by a State, or accredited to furnish adult
day-care services in the State shall not disqualify an individual from being
considered to be `confined to his home'. Any other absence of an individual
from the home shall not so disqualify an individual if the absence is of
infrequent or short duration. For purposes of the preceding sentence, any
absence for the purpose of visiting a family member who is unable to visit
the individual or for the purpose of attending a religious service shall be
deemed to be an absence of infrequent and short duration.'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply to
items and services provided on or after the date of enactment of this Act.
SEC. 306. STANDARDS FOR HOME HEALTH BRANCH OFFICES.
(a) IN GENERAL- Section 1861(o) (42 U.S.C. 1395x(o)) is amended by adding
at the end the following new sentences: `For purposes of this subsection, a
home health agency may provide services through a single site or through a
branch office. For purposes of the preceding sentence, the term `branch
office' means a service site for home health services that is controlled and
supervised by a home health agency.'.
(b) ESTABLISHMENT OF STANDARDS-
(1) IN GENERAL- The Secretary of Health and Human Services (in this
subsection referred to as the `Secretary') shall establish, using a
negotiated rulemaking process under subchapter III of chapter 5 of title 5,
United States Code, standards for the operation of a branch office (as
defined in the last
sentence of section 1861(o) of the Social Security Act (42 U.S.C. 1395x(o)),
as added by subsection (a)).
(2) REQUIREMENTS- In establishing standards under paragraph (1), the
Secretary shall--
(A) provide for the special treatment of any home health agency or
branch office--
(i) that is located in a frontier area; or
(ii) with any other special circumstance that the Secretary
determines is appropriate; and
(B) allow the use of technology used by the home health agency to
supervise the branch office.
(3) CONSULTATION- The Secretary shall establish the regulations under
this subsection in consultation with representatives of the home health
industry.
SEC. 307. TREATMENT OF HOME HEALTH SERVICES PROVIDED IN CERTAIN
COUNTIES.
(a) IN GENERAL- Notwithstanding any other provision of law, effective for
home health services provided under the prospective payment system under
section 1895 of the Social Security Act (42 U.S.C. 1395fff) during fiscal year
2001 in an applicable county, the geographic adjustment factors applicable in
such year to hospitals physically located in such county under section 1886(d)
of such Act (42 U.S.C. 1395ww(d)) (including the factors applicable to such
hospitals by reason of any reclassification or deemed reclassification) shall
be deemed to apply to such services instead of the area wage adjustment
factors that would otherwise be applicable to such services under section
1895(b)(4)(C) of such Act (42 U.S.C. 1395fff(b)(4)(C)).
(b) APPLICABLE COUNTY DEFINED- For purposes of subsection (a), the term
`applicable county' means any of the following counties:
(1) Duchess County, New York.
(2) Orange County, New York.
(3) Clinton County, New York.
(4) Ulster County, New York.
(5) Otsego County, New York.
(6) Cayuga County, New York.
(7) St. Jefferson County, New York.
SEC. 308. RULE OF CONSTRUCTION RELATING TO TELEHOMEHEALTH SERVICES.
(a) IN GENERAL- Section 1895(b) (42 U.S.C. 1395fff(b)(3)), as amended by
section 3, is further amended by adding at the end the following paragraph:
`(9) RULE OF CONSTRUCTION RELATING TO TELEHOMEHEALTH SERVICES-
`(A) IN GENERAL- Nothing in this section, or in section 4206(a) of the
Balanced Budget Act of 1997 (42 U.S.C. 1395l note), shall be construed as
preventing a home health agency receiving payment under this section from
furnishing a home health service via a telecommunications system. Each
home health agency that submits a cost report to the Secretary under this
section shall include, in such cost report, data with respect to the costs
incurred in furnishing home health services to medicare beneficiaries via
such telecommunications systems.
`(B) LIMITATION- The Secretary shall not consider a home health
service provided in the manner described in subparagraph (A) to be a home
health visit for purposes of--
`(i) determining the amount of payment to be made under this
section; or
`(ii) any requirement relating to the certification of a physician
required under section 1814(a)(2)(C).'.
(b) REPORT- Not later than one year after the date of the enactment of
this Act, the Secretary of Health and Human Services shall submit to Congress
a report containing the recommendations of the Secretary with respect to the
feasibility and advisability of including home health services furnished by
telecommunications systems as a home health service for purposes of--
(1) payment for such services under section 1895 of the Social Security
Act (42 U.S.C. 1395fff), and
(2) requirements with respect to physician certification of the need for
home health services under section 1814(a)(2)(C) of such Act (42 U.S.C.
1395f(a)(2)(C)).
Subtitle B--Direct Graduate Medical Education
SEC. 311. NOT COUNTING CERTAIN GERIATRIC RESIDENTS AGAINST GRADUATE MEDICAL
EDUCATION LIMITATIONS.
For cost reporting periods beginning on or after October 1, 2000, and
before October 1, 2005, in applying the limitations regarding the total number
of full-time equivalent interns and residents in the field of allopathic or
osteopathic medicine under subsections (d)(5)(B)(v) and (h)(4)(F) of section
1886 of the Social Security Act (42 U.S.C. 1395ww) for a hospital, the
Secretary of Health and Human Services shall not take into account a maximum
of 3 interns or residents in the field of geriatric medicine to the extent the
hospital increases the number of geriatric interns or residents above the
number of such interns or residents for the hospital's most recent cost
reporting period ending before October 1, 2000.
SEC. 312. PROGRAM OF PAYMENTS TO CHILDREN'S HOSPITALS THAT OPERATE GRADUATE
MEDICAL EDUCATION PROGRAMS.
Part A of title XI (42 U.S.C. 1301 et seq.) is amended by adding after
section 1150 the following new section:
`PROGRAM OF PAYMENTS TO CHILDREN'S HOSPITALS THAT OPERATE GRADUATE MEDICAL
EDUCATION PROGRAMS
`SEC. 1150A. (a) PAYMENTS- The Secretary shall make 2 payments under this
section to each children's hospital for each of fiscal years 2002 through
2005, 1 for the direct expenses and the other for the indirect expenses
associated with operating approved graduate medical residency training
programs.
`(1) IN GENERAL- Subject to paragraph (2), the amounts payable under
this section to a children's hospital for an approved graduate medical
residency training program for a fiscal year are each of the following
amounts:
`(A) DIRECT EXPENSE AMOUNT- The amount determined under subsection (c)
for direct expenses associated with operating approved graduate medical
residency training programs.
`(B) INDIRECT EXPENSE AMOUNT- The amount determined under subsection
(d) for indirect expenses associated with the treatment of more severely
ill patients and the additional costs relating to teaching residents in
such programs.
`(A) IN GENERAL- The total of the payments made to children's
hospitals under subparagraph (A) or (B) of paragraph (1) in a fiscal year
shall not exceed the funds appropriated under paragraph (1) or (2),
respectively, of subsection (f) for such payments for that fiscal
year.
`(B) PRO RATA REDUCTIONS OF PAYMENTS FOR DIRECT EXPENSES- If the
Secretary determines that the amount of funds appropriated under
subsection (f)(1) for a fiscal year is insufficient to provide the total
amount of payments otherwise due for such periods under paragraph (1)(A),
the Secretary shall reduce the amounts so payable on a pro rata basis to
reflect such shortfall.
`(c) AMOUNT OF PAYMENT FOR DIRECT GRADUATE MEDICAL EDUCATION-
`(1) IN GENERAL- The amount determined under this subsection for
payments to a children's hospital for direct graduate expenses relating to
approved graduate medical residency training programs for a fiscal year is
equal to the product of--
`(A) the updated per resident amount for direct graduate medical
education, as determined under paragraph (2); and
`(B) the average number of full-time equivalent residents in the
hospital's graduate approved medical residency training programs (as
determined under section 1886(h)(4)) during the fiscal year.
`(2) UPDATED PER RESIDENT AMOUNT FOR DIRECT GRADUATE MEDICAL EDUCATION-
The updated per resident amount for direct graduate medical education for a
hospital for a fiscal year is an amount determined as follows:
`(A) DETERMINATION OF HOSPITAL SINGLE PER RESIDENT AMOUNT- The
Secretary shall compute for each hospital operating an approved graduate
medical education program (regardless of whether or not it is a children's
hospital) a single per resident amount equal to the average (weighted by
number of full-time equivalent residents) of the primary care per resident
amount and the non-primary care per resident amount computed under section
1886(h)(2) for cost reporting periods ending during fiscal year
1997.
`(B) DETERMINATION OF WAGE AND NON-WAGE-RELATED PROPORTION OF THE
SINGLE PER RESIDENT AMOUNT- The Secretary shall estimate the average
proportion of the single per resident amounts computed under subparagraph
(A) that is attributable to wages and wage-related costs.
`(C) STANDARDIZING PER RESIDENT AMOUNTS- The Secretary shall establish
a standardized per resident amount for each such hospital--
`(i) by dividing the single per resident amount computed under
subparagraph (A) into a wage-related portion and a non-wage-related
portion by applying the proportion determined under subparagraph
(B);
`(ii) by dividing the wage-related portion by the factor applied
under section 1886(d)(3)(E) for discharges occurring during fiscal year
1999 for the hospital's area; and
`(iii) by adding the non-wage-related portion to the amount computed
under clause (ii).
`(D) DETERMINATION OF NATIONAL AVERAGE- The Secretary shall compute a
national average per resident amount equal to the average of the
standardized per resident amounts computed under subparagraph (C) for such
hospitals, with the amount for each hospital weighted by the average
number of full-time equivalent residents at such hospital.
`(E) APPLICATION TO INDIVIDUAL HOSPITALS- The Secretary shall compute
for each such hospital that is a children's hospital a per resident
amount--
`(i) by dividing the national average per resident amount computed
under subparagraph (D) into a wage-related portion and a
non-wage-related portion by applying the proportion determined under
subparagraph (B);
`(ii) by multiplying the wage-related portion by the factor
described in subparagraph (C)(ii) for the hospital's area;
and
`(iii) by adding the non-wage-related portion to the amount computed
under clause (ii).
`(F) UPDATING RATE- The Secretary shall update such per resident
amount for each such children's hospital by the estimated percentage
increase in the Consumer Price Index for all urban consumers (U.S. city
average) during the period beginning October 1997, and ending with the
midpoint of the Federal fiscal year for which payments are made.
`(d) AMOUNT OF PAYMENT FOR INDIRECT MEDICAL EDUCATION-
`(1) IN GENERAL- The amount determined under this subsection for
payments to a children's hospital for indirect expenses associated with
the
treatment of more severely ill patients and the additional costs related to
the teaching of residents for a fiscal year is equal to an amount determined
appropriate by the Secretary.
`(2) FACTORS- In determining the amount under paragraph (1), the
Secretary shall--
`(A) take into account variations in case mix and regional wage levels
among children's hospitals and the number of full-time equivalent
residents in the hospitals' approved graduate medical residency training
programs; and
`(B) assure that the aggregate of the payments for indirect expenses
associated with the treatment of more severely ill patients and the
additional costs related to the teaching of residents under this section
in a fiscal year are equal to the amount appropriated for such expenses
for the fiscal year involved under subsection (f)(2).
`(1) INTERIM PAYMENTS- The Secretary shall determine, before the
beginning of each fiscal year involved for which payments may be made for a
hospital under this section, the amounts of the payments for direct graduate
medical education and indirect medical education for such fiscal year and
shall (subject to paragraph (2)) make the payments of such amounts in 26
equal interim installments during such period. Such interim payments to each
individual hospital shall be based on the number of residents reported in
the hospital's most recently filed medicare cost report prior to the
application date for the Federal fiscal year for which the interim payment
amounts are established.
`(A) IN GENERAL- Subject to subparagraph (B), the Secretary shall
withhold 25 percent from each interim installment for direct and indirect
graduate medical education paid under paragraph (1).
`(B) REDUCTION OF WITHHOLDING- The Secretary shall reduce the percent
withheld from each installment pursuant to subparagraph (A) if the
Secretary determines that such reduced percent will provide the Secretary
with a reasonable level of assurance that most hospitals will not be
overpaid on an interim basis.
`(3) RECONCILIATION- Prior to the end of each fiscal year, the Secretary
shall determine any changes to the number of residents reported by a
hospital and shall use that number of residents to determine the final
amount payable to the hospital for the current fiscal year for both direct
expense and indirect expense amounts. Based on such determination, the
Secretary shall recoup any overpayments made or pay any balance due to the
extent possible. In the event that a hospital's interim payments were
greater than the final amount to which it is entitled, the Secretary shall
have the option of recouping that excess amount in determining the amount to
be paid in the subsequent year to that hospital. The final amount so
determined shall be considered a final intermediary determination for
purposes of applying section 1878 and shall be subject to review under that
section in the same manner as the amount of payment under section 1886(d) is
subject to review under such section.
`(f) AUTHORIZATION OF APPROPRIATIONS-
`(1) DIRECT GRADUATE MEDICAL EDUCATION-
`(A) IN GENERAL- There are appropriated, out of any money in the
Treasury not otherwise appropriated, for payments under subsection
(b)(1)(A) for each of fiscal years 2002 through 2005,
$95,000,000.
`(B) CARRYOVER OF EXCESS- The amounts appropriated under subparagraph
(A) for each fiscal year shall remain available for obligation through the
end of the subsequent fiscal year.
`(2) INDIRECT MEDICAL EDUCATION- There are appropriated, out of any
money in the Treasury not otherwise appropriated, for payments under
subsection (b)(1)(A) for each of fiscal years 2002 through 2005,
$190,000,000.
`(g) DEFINITIONS- In this section:
`(1) APPROVED GRADUATE MEDICAL RESIDENCY TRAINING PROGRAM- The term
`approved graduate medical residency training program' has the meaning given
the term `approved medical residency training program' in section
1886(h)(5)(A).
`(2) CHILDREN'S HOSPITAL- The term `children's hospital' means a
hospital with a medicare payment agreement and which is excluded from the
medicare inpatient prospective payment system pursuant to section
1886(d)(1)(B)(iii) and its accompanying regulations.
`(3) DIRECT GRADUATE MEDICAL EDUCATION COSTS- The term `direct graduate
medical education costs' has the meaning given such term in section
1886(h)(5)(C).'.
SEC. 313. AUTHORITY TO INCLUDE COSTS OF TRAINING OF CLINICAL PSYCHOLOGISTS
IN PAYMENTS TO HOSPITALS.
Effective for cost reporting periods beginning on or after October 1,
1999, for purposes of payments to hospitals under the medicare program under
title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) for costs of
approved educational activities (as defined in section 413.85 of title 42 of
the Code of Federal Regulations), such approved educational activities shall
include the clinical portion of professional educational training programs,
recognized by the Secretary, for clinical psychologists.
SEC. 314. TREATMENT OF CERTAIN NEWLY ESTABLISHED RESIDENCY PROGRAMS IN
COMPUTING MEDICARE PAYMENTS FOR THE COSTS OF MEDICAL EDUCATION.
(a) IN GENERAL- Section 1886(h)(4)(H) (42 U.S.C. 1395ww(h)(4)(H)) is
amended by adding at the end the following new clause:
`(v) TREATMENT OF CERTAIN NEWLY ESTABLISHED PROGRAMS- Any hospital
that has received payments under this subsection for a cost reporting
period ending
before January 1, 1995, and that operates an approved medical residency
training program established on or after August 5, 1997, shall be treated as
meeting the requirements for an adjustment under the rules prescribed pursuant
to clause (i) with respect to such program if--
`(I) such program received accreditation from the American Council
of Graduate Medical Education not later than August 5,
1998;
`(II) such program was in operation (with 1 or more residents in
training) as of January 1, 2000;
`(III) such hospital is located in an area that is contiguous to a
rural area and serves individuals from such rural area;
and
`(IV) such hospital serves a medical service area with a
population that is less than 500,000.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
as if included in the enactment of section 4623 of BBA (111 Stat. 477).
SEC. 315. EXCEPTION TO ESTABLISHING THE NUMBER OF RESIDENTS FOR CERTAIN
HOSPITALS.
(a) AMENDMENT TO LIMITATION ON RESIDENTS FOR INDIRECT GRADUATE MEDICAL
EDUCATION- Section 1886(d)(5)(B)(v) (42 U.S.C. 1395ww(d)(5)(B)(v)) is
amended--
(1) by adding the following after `December 31, 1996' and before the
period: `(except in the case where a community health center held the
accreditation for an approved medical residency training program of a
hospital during fiscal year 1997 and the hospital incurred all or
substantially all of the costs of training those residents at the community
health center, the total number of full-time equivalent interns and
residents for the hospital with respect to such training program in the
fields of allopathic and osteopathic medicine may not exceed the number of
such full-time equivalent interns and residents that trained at such
hospital and such community health center during the hospital's cost
reporting period ending on or before December 31, 1997)'.
(b) AMENDMENT TO LIMITATION ON RESIDENTS FOR DIRECT GRADUATE MEDICAL
EDUCATION- Section 1886(h)(4)(F) (42 U.S.C. 1395ww(h)(4)(F)) is amended--
(1) in clause (i), by striking `Such rules' and inserting `Subject to
clause (iii), such rules'; and
(2) by adding at the end the following new clause:
`(iii) SPECIAL RULE- In the case where a community health center
held the accreditation for an approved medical residency training
program of a hospital during fiscal year 1997 and the hospital incurred
all or substantially all of the costs of training those residents at the
community health center, the total number of full-time equivalent
residents before application of weighting factors for the hospital (as
determined under this paragraph) with respect to such training program
in the fields of allopathic medicine and osteopathic medicine may not
exceed the number of such full-time equivalent residents that trained at
such hospital and such community health center during the hospital's
cost reporting period ending on or before December 31,
1997.'.
(c) DEFINITION OF COMMUNITY HEALTH CENTER- For the purposes of this
section, the term `community health center' has the meaning given the term
`health center' in section 330(a) of the Public Health Service Act (42 U.S.C.
254b(a)).
(d) EFFECTIVE DATE- The amendments made by subsections (a) and (b) shall
take effect as if included in the enactment of the Balanced Budget Act of 1997
(Public Law 105-33).
Subtitle C--Miscellaneous Provisions
SEC. 321. WAIVER OF 24-MONTH WAITING PERIOD FOR MEDICARE COVERAGE OF
INDIVIDUALS DISABLED WITH AMYOTROPHIC LATERAL SCLEROSIS (ALS).
(a) IN GENERAL- Section 226 (42 U.S.C. 426) is amended--
(1) by redesignating subsection (h) as subsection (j) and by moving such
subsection to the end of the section; and
(2) by inserting after subsection (g) the following new
subsection:
`(h) For purposes of applying this section in the case of an individual
medically determined to have amyotrophic lateral sclerosis (ALS), the
following special rules apply:
`(1) Subsection (b) shall be applied as if there were no requirement for
any entitlement to benefits, or status, for a period longer than 1
month.
`(2) The entitlement under such subsection shall begin with the first
month (rather than twenty-fifth month) of entitlement or status.
`(3) Subsection (f) shall not be applied.'.
(b) CONFORMING AMENDMENT- Section 1837 (42 U.S.C. 1395p) is amended by
adding at the end the following new subsection:
`(j) In applying this section in the case of an individual who is entitled
to benefits under part A pursuant to the operation of section 226(h), the
following special rules apply:
`(1) The initial enrollment period under subsection (d) shall begin on
the first day of the first month in which the individual satisfies the
requirement of section 1836(1).
`(2) In applying subsection (g)(1), the initial enrollment period shall
begin on the first day of the first month of entitlement to disability
insurance benefits referred to in such subsection.'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
benefits for months beginning after the date of enactment of this Act.
TITLE IV--RURAL PROVIDER PROVISIONS
Subtitle A--Critical Access Hospitals
SEC. 401. PAYMENTS TO CRITICAL ACCESS HOSPITALS FOR CLINICAL DIAGNOSTIC
LABORATORY TESTS.
(a) PAYMENT ON COST BASIS WITHOUT BENEFICIARY COST-SHARING-
(1) IN GENERAL- Section 1833(a)(6) (42 U.S.C. 1395l(a)(6)) is amended by
inserting `(including clinical diagnostic laboratory services furnished by a
critical access hospital)' after `outpatient critical access hospital
services'.
(2) NO BENEFICIARY COST-SHARING-
(A) IN GENERAL- Section 1834(g) (42 U.S.C. 1395m(g)) is amended by
inserting `(except that in the case of clinical diagnostic laboratory
services furnished by a critical access hospital the amount of payment
shall be equal to 100 percent of the reasonable costs of the critical
access hospital in providing such services)' before the period at the
end.
(B) BBRA AMENDMENT- Section 1834(g) (42 U.S.C. 1395m(g)), as amended
by section 403(d) of BBRA (113 Stat. 1501A-371), is amended--
(i) in paragraph (1), by inserting `(except that in the case of
clinical diagnostic laboratory services furnished by a critical access
hospital the amount of payment shall be equal to 100 percent of the
reasonable costs of the critical access hospital in providing such
services)' after `such services'; and
(ii) in paragraph (2)(A), by inserting `(except that in the case of
clinical diagnostic laboratory services furnished by a critical access
hospital the amount of payment shall be equal to 100 percent of the
reasonable costs of the critical access hospital in providing such
services)' before the period at the end.
(b) CONFORMING AMENDMENTS- Paragraphs (1)(D)(i) and (2)(D)(i) of section
1833(a) (42 U.S.C. 1395l(a)(1)(D)(i); 1395l(a)(2)(D)(i)) are each amended by
striking `or which are furnished on an outpatient basis by a critical access
hospital'.
(c) TECHNICAL AMENDMENT- Section 403(d)(2) of BBRA (113 Stat. 1501A-371)
is amended by striking `subsection (a)' and inserting `paragraph (1)'.
(1) IN GENERAL- Except as provided in paragraph (2), the amendments made
by this section shall apply to services furnished on or after November 29,
1999.
(2) BBRA AND TECHNICAL AMENDMENTS- The amendments made by subsections
(a)(2)(B) and (c) shall take effect as if included in the enactment of
section 403(d) of BBRA (113 Stat. 1501A-371).
SEC. 402. REVISION OF PAYMENT FOR PROFESSIONAL SERVICES PROVIDED BY A
CRITICAL ACCESS HOSPITAL.
(a) IN GENERAL- Section 1834(g)(2)(B) (42 U.S.C. 1395m(g)(2)(B)), as
amended by section 403(d) of BBRA (113 Stat. 1501A-371), is amended by
inserting `120 percent of' after `hospital services,'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
as if included in the enactment of section 403(d) of BBRA (113 Stat.
1501A-371).
SEC. 403. PERMITTING CRITICAL ACCESS HOSPITALS TO OPERATE PPS EXEMPT
DISTINCT PART PSYCHIATRIC AND REHABILITATION UNITS.
(a) CRITERIA FOR DESIGNATION AS A CRITICAL ACCESS HOSPITAL- Section
1820(c)(2)(B)(iii) (42 U.S.C. 1395i-4(c)(2)(B)(iii)) is amended by inserting
`excluding any psychiatric or rehabilitation unit of the facility which is a
distinct part of the facility,' before `provides not'.
(b) DEFINITION OF PPS EXEMPT DISTINCT PART PSYCHIATRIC AND REHABILITATION
UNITS- Section 1886(d)(1)(B) (42 U.S.C. 1395ww(d)(1)(B)) is amended by
inserting before the last sentence the following new sentence: `In
establishing such definition, the Secretary may not exclude from such
definition a psychiatric or rehabilitation unit of a critical access hospital
which is a distinct part of such hospital solely because such hospital is
exempt from the prospective payment system under this section.'.
(c) EFFECTIVE DATE- The amendments made by this section shall take effect
on the date of enactment of this Act.
Subtitle B--Medicare Dependent, Small Rural Hospital
Program
SEC. 411. MAKING THE MEDICARE DEPENDENT, SMALL RURAL HOSPITAL PROGRAM
PERMANENT.
(a) PAYMENT METHODOLOGY- Section 1886(d)(5)(G) (42 U.S.C. 1395ww(d)(5)(G))
is amended--
(1) in clause (i), by striking `and before October 1, 2006,'; and
(2) in clause (ii)(II), by striking `and before October 1, 2006,'.
(b) CONFORMING AMENDMENTS-
(1) TARGET AMOUNT- Section 1886(b)(3)(D) (42 U.S.C. 1395ww(b)(3)(D)) is
amended--
(A) in the matter preceding clause (i), by striking `and before
October 1, 2006,'; and
(B) in clause (iv), by striking `through fiscal year 2005,' and
inserting `or any subsequent fiscal year,'.
(2) PERMITTING HOSPITALS TO DECLINE RECLASSIFICATION- Section
13501(e)(2) of the Omnibus Budget Reconciliation Act of 1993 (42 U.S.C.
1395ww note), as amended by section 404(b)(2) of BBRA (113 Stat. 1501A-372),
is amended by striking `or fiscal year 2000 through fiscal year 2005' and
inserting `fiscal year 2000, or any subsequent fiscal year,'.
SEC. 412. OPTION TO BASE ELIGIBILITY FOR MEDICARE DEPENDENT, SMALL RURAL
HOSPITAL PROGRAM ON DISCHARGES DURING ANY OF THE 3 MOST RECENT AUDITED COST
REPORTING PERIODS.
(a) IN GENERAL- Section 1886(d)(5)(G)(iv)(IV) (42 U.S.C.
1395ww(d)(5)(G)(iv)(IV)) is amended by inserting `, or any of the 3 most
recent audited cost reporting periods,' after `1987'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply with
respect to cost reporting periods beginning on or after the date of enactment
of this Act.
Subtitle C--Sole Community Hospitals
SEC. 421. EXTENSION OF OPTION TO USE REBASED TARGET AMOUNTS TO ALL SOLE
COMMUNITY HOSPITALS.
(a) IN GENERAL- Section 1886(b)(3)(I)(i) (42 U.S.C. 1395ww(b)(3)(I)(i)) is
amended--
(1) in the matter preceding subclause (I)--
(A) by striking `that for its cost reporting period beginning during
1999 is paid on the basis of the target amount applicable to the hospital
under subparagraph (C) and that elects (in a form and manner determined by
the Secretary) this subparagraph to apply to the hospital'; and
(B) by striking `substituted for such target amount' and inserting
`substituted, if such substitution results in a greater payment under this
section for such hospital, for the amount otherwise determined under
subsection (d)(5)(D)(i)';
(2) in subclause (I), by striking `target amount otherwise applicable'
and all that follows through `target amount')' and inserting `the amount
otherwise applicable to the hospital under subsection (d)(5)(D)(i) (referred
to in this clause as the `subsection (d)(5)(D)(i) amount')'; and
(3) in each of subclauses (II) and (III), by striking `subparagraph (C)
target amount' and inserting `subsection (d)(5)(D)(i) amount'.
(b) EFFECTIVE DATE- The amendments made by this section shall take effect
as if included in the enactment of section 405 of BBRA (113 Stat.
1501A-372).
SEC. 422. DEEMING A CERTAIN HOSPITAL AS A SOLE COMMUNITY HOSPITAL.
Notwithstanding any other provision of law, for purposes of discharges
occurring on or after October 1, 2000, the Greensville Memorial Hospital
located in Emporia, Virginia shall be deemed to have satisfied the travel and
time criteria under section 1886(d)(5)(D)(iii)(II) of the Social Security Act
(42 U.S.C. 1395ww(d)(5)(D)(iii)(II)) for classification as a sole community
hospital.
Subtitle D--Other Rural Hospital Provisions
SEC. 431. EXEMPTION OF HOSPITAL SWING-BED PROGRAM FROM THE PPS FOR SKILLED
NURSING FACILITIES.
(a) EXEMPTION FOR MEDICARE SWING-BED HOSPITALS-
(1) IN GENERAL- Section 1888(e)(7) (42 U.S.C. 1395yy(e)(7)(A)) is
amended--
(A) in the heading, by striking `TRANSITION' and inserting
`EXEMPTION';
(B) by striking subparagraph (A) and inserting the following new
subparagraph:
`(A) IN GENERAL- The prospective payment system under this subsection
shall not apply to items and services provided by a facility described in
subparagraph (B).'; and
(C) in subparagraph (B), by striking `, for which payment' and all
that follows before the period.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) shall take
effect as if included in the enactment of section 4432 of BBA (111 Stat.
414).
(b) CHANGE IN EFFECTIVE DATE OF BBRA AMENDMENTS-
(1) IN GENERAL- Section 408(c) of BBRA (113 Stat. 1501A-375) is amended
by striking `the date that is' and all that follows and inserting `January
1, 2001.'.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall take
effect as if included in the enactment of section 408 of BBRA (113 Stat.
1501A-375).
SEC. 432. PERMANENT GUARANTEE OF PRE-BBA PAYMENT LEVELS FOR OUTPATIENT
SERVICES FURNISHED BY RURAL HOSPITALS.
(a) IN GENERAL- Section 1833(t)(7)(D), as amended by section 203, is
amended to read as follows:
`(D) HOLD HARMLESS PROVISIONS FOR SMALL RURAL AND CANCER HOSPITALS- In
the case of a hospital located in a rural area
and that has not more than 100 beds or a hospital described in section
1886(d)(1)(B)(v), for covered OPD services for which the PPS amount is less than
the pre-BBA amount, the amount of payment under this subsection shall be
increased by the amount of such difference.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
as if included in the enactment of section 202 of BBRA (111 Stat.
1501A-342).
SEC. 433. TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES.
(a) IN GENERAL- Section 1848(i) (42 U.S.C. 1395w-4(i)) is amended by
adding at the end the following new paragraph:
`(4) TREATMENT OF CERTAIN PHYSICIAN PATHOLOGY SERVICES-
`(A) IN GENERAL- Notwithstanding any other provision of law, when an
independent laboratory furnishes the technical component of a physician
pathology service with respect to a fee-for-service medicare beneficiary
who is a patient of a grandfathered hospital, such component shall be
treated as a service for which payment shall be made to the laboratory
under this section and not as--
`(i) an inpatient hospital service for which payment is made to the
hospital under section 1886(d); or
`(ii) a hospital outpatient service for which payment is made to the
hospital under the prospective payment system under section
1834(t).
`(B) DEFINITIONS- In this paragraph:
`(i) GRANDFATHERED HOSPITAL- The term `grandfathered hospital' means
a hospital that had an arrangement with an independent
laboratory--
`(I) that was in effect as of July 22, 1999; and
`(II) under which the laboratory furnished the technical component
of physician pathology services with respect to patients of the
hospital and submitted a claim for payment for such component to a
carrier with a contract under section 1842 (and not to the
hospital).
`(ii) FEE-FOR-SERVICE MEDICARE BENEFICIARY- The term
`fee-for-service medicare beneficiary' means an individual who is not
enrolled--
`(I) in a Medicare+Choice plan under part C;
`(II) in a plan offered by an eligible organization under section
1876;
`(III) with a PACE provider under section 1894;
`(IV) in a medicare managed care demonstration project;
or
`(V) in the case of a service furnished to an individual on an
outpatient basis, in a health care prepayment plan under section
1833(a)(1)(A).'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
services furnished on or after January 1, 2001.
Subtitle E--Other Rural Provisions
SEC. 441. REVISION OF BONUS PAYMENTS FOR SERVICES FURNISHED IN HEALTH
PROFESSIONAL SHORTAGE AREAS.
(a) EXPANSION OF BONUS PAYMENTS TO INCLUDE PHYSICIAN ASSISTANT AND NURSE
PRACTITIONER SERVICES- Section 1833(m) (42 U.S.C. 1395l(m)) is amended--
(1) by inserting `(or services furnished by a physician assistant or
nurse practitioner that would be physicians' services if furnished by a
physician)' after `physicians' services';
(2) by inserting `, physician assistant (in the case of a physician
assistant described in subparagraph (C)(ii) of section 1842(b)(6)), or nurse
practitioner' after `physician'; and
(3) by striking `clause (A) of section 1842(b)(6)' and inserting
`subparagraphs (A) and (C)(i) of such section'.
(b) ELIMINATION OF REQUIREMENT TO MAKE BONUS PAYMENTS ON MONTHLY OR
QUARTERLY BASIS- Section 1833(m) (42 U.S.C. 1395l(m)) is amended by striking
`(on a monthly or quarterly basis)'.
(1) IN GENERAL- The amendments made by subsection (a) shall apply to
services furnished on or after July 1, 2001.
(2) MONTHLY OR QUARTERLY PAYMENTS- The amendment made by subsection (b)
shall apply to services furnished on or after the first day of the first
calendar quarter beginning at least 240 days after the date of enactment of
this Act.
SEC. 442. PROVIDER-BASED RURAL HEALTH CLINIC CAP EXEMPTION.
(a) IN GENERAL- The matter in section 1833(f) (42 U.S.C. 1395l(f))
preceding paragraph (1) is amended by striking `with less than 50 beds' and
inserting `with an average daily patient census that does not exceed 50'.
(b) EFFECTIVE DATE- The amendment made by subparagraph (A) shall apply to
services furnished on or after January 1, 2001.
SEC. 443. PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES.
(a) PAYMENT FOR CERTAIN PHYSICIAN ASSISTANT SERVICES- Section
1842(b)(6)(C) (42 U.S.C. 1395u(b)(6)(C)) is amended by striking `for such
services provided before January 1, 2003,'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall take effect
on the date of enactment of this Act.
SEC. 444. EXCLUSION OF CLINICAL SOCIAL WORKER SERVICES AND SERVICES
PERFORMED UNDER A CONTRACT WITH A RURAL HEALTH CLINIC OR FEDERALLY QUALIFIED
HEALTH CENTER FROM THE PPS FOR SNFs.
(a) IN GENERAL- Section 1888(e)(2)(A)(ii) (42 U.S.C. 1395yy(e)(2)(A)(ii))
is amended--
(1) in the first sentence, by inserting `clinical social worker
services,' after `qualified psychologist services,'; and
(2) by inserting after the first sentence the following: `Services
described in this clause also include services that are provided by a
physician, a physician assistant, a nurse practitioner, a certified nurse
midwife, a qualified psychologist, or a clinical social worker who is
employed, or otherwise under contract, with a rural health clinic or a
Federally qualified health center.'.
(b) EFFECTIVE DATE- The amendments made by this section shall apply to
services provided on or after the date which is 60 days after the date of
enactment of this Act.
SEC. 445. COVERAGE OF MARRIAGE AND FAMILY THERAPIST SERVICES PROVIDED IN
RURAL HEALTH CLINICS.
(a) COVERAGE OF MARRIAGE AND FAMILY THERAPIST SERVICES-
(1) PROVISION OF SERVICES IN RURAL HEALTH CLINICS- Section
1861(aa)(1)(B) (42 U.S.C. 1395x(aa)(1)(B)) is amended by striking
`Secretary)' and inserting `Secretary), by a marriage and family therapist
(as defined in subsection (xx)(2)),'.
(2) MARRIAGE AND FAMILY THERAPIST SERVICES DEFINED- Section 1861 (42
U.S.C. 1395x), as amended by section 232, 233(a), 234(b), and 250(b), is
further amended by adding at the end the following new subsection:
`Marriage and Family Therapist Services
`(yy)(1) The term `marriage and family therapist services' means services
performed by a marriage and family therapist (as defined in paragraph (2)) for
the diagnosis and treatment of mental illnesses, which the marriage and family
therapist is legally authorized to perform under State law (or the State
regulatory mechanism provided by State law) of the State in which such
services are performed, as would otherwise be covered if furnished by a
physician or as an incident to a physician's professional service, but only if
no facility or other provider charges or is paid any amounts with respect to
the furnishing of such services.
`(2) The term `marriage and family therapist' means an individual who--
`(A) possesses a master's or doctoral degree which qualifies for
licensure or certification as a marriage and family therapist pursuant to
State law;
`(B) after obtaining such degree has performed at least 2 years of
clinical supervised experience in marriage and family therapy; and
`(C)(i) is licensed or certified as a marriage and family therapist in
the State in which marriage and family therapist services are performed;
or
`(ii) in the case of a State that does not provide for such licensure or
certification, meets such other criteria as the Secretary
establishes.'.
(b) EFFECTIVE DATE- The amendments made by this section shall apply with
respect to services furnished on or after January 1, 2002.
SEC. 446. CAPITAL INFRASTRUCTURE REVOLVING LOAN PROGRAM.
(a) IN GENERAL- Part A of title XVI of the Public Health Service Act (42
U.S.C. 300q et seq.) is amended by adding at the end the following new
section:
`capital infrastructure revolving loan program
`SEC. 1603. (a) AUTHORITY TO MAKE AND GUARANTEE LOANS-
`(1) AUTHORITY TO MAKE LOANS- The Secretary may make loans from the fund
established under section 1602(d) to any rural entity for projects for
capital improvements, including--
`(A) the acquisition of land necessary for the capital
improvements;
`(B) the renovation or modernization of any building;
`(C) the acquisition or repair of fixed or major movable equipment;
and
`(D) such other project expenses as the Secretary determines
appropriate.
`(2) AUTHORITY TO GUARANTEE LOANS-
`(A) IN GENERAL- The Secretary may guarantee the payment of principal
and interest for loans to rural entities for projects for capital
improvements described in paragraph (1) to non-Federal lenders.
`(B) INTEREST SUBSIDIES- In the case of a guarantee of any loan to a
rural entity under subparagraph (A)(i), the Secretary may pay to the
holder of such loan and for and on behalf of the project for which the
loan was made, amounts sufficient to reduce by not more than 3 percentage
points of the net effective interest rate otherwise payable on such
loan.
`(b) AMOUNT OF LOAN- The principal amount of a loan directly made or
guaranteed under subsection (a) for a project for capital improvement may not
exceed $5,000,000.
`(c) FUNDING LIMITATIONS-
`(1) GOVERNMENT CREDIT SUBSIDY EXPOSURE- The total of the Government
credit subsidy exposure under the Credit Reform Act of 1990 scoring protocol
with respect to the loans outstanding at any time with respect to which
guarantees have been issued, or which have been directly made, under
subsection (a) may not exceed $50,000,000 per year.
`(2) TOTAL AMOUNTS- Subject to paragraph (1), the total of the principal
amount of all loans directly made or guaranteed under subsection (a) may not
exceed $250,000,000 per year.
`(d) ADDITIONAL ASSISTANCE-
`(1) NONREPAYABLE GRANTS- Subject to paragraph (2), the Secretary may
make a grant to a rural entity, in an amount not to exceed $50,000, for
purposes of capital assessment and business planning.
`(2) LIMITATION- The cumulative total of grants awarded under this
subsection may not exceed $2,500,000 per year.
`(e) TERMINATION OF AUTHORITY- The Secretary may not directly make or
guarantee any loan under subsection (a) or make a grant under subsection (d)
after September 30, 2005.'.
(b) RURAL ENTITY DEFINED- Section 1624 of the Public Health Service Act
(42 U.S.C. 300s-3) is amended by adding at the end the following new
paragraph:
`(15)(A) The term `rural entity' includes--
`(i) a rural health clinic, as defined in section 1861(aa)(2) of the
Social Security Act;
`(ii) any medical facility with at least 1, but less than 50, beds
that is located in--
`(I) a county that is not part of a metropolitan statistical area;
or
`(II) a rural census tract of a metropolitan statistical area (as
determined under the most recent modification of the Goldsmith
Modification, originally published in the Federal Register on February
27, 1992 (57 Fed. Reg. 6725));
`(iii) a hospital that is classified as a rural, regional, or national
referral center under section 1886(d)(5)(C) of the Social Security Act;
and
`(iv) a hospital that is a sole community hospital (as defined in
section 1886(d)(5)(D)(iii) of the Social Security Act).
`(B) For purposes of subparagraph (A), the fact that a clinic, facility,
or hospital has been geographically reclassified under the medicare program
under title XVIII of the Social Security Act shall not preclude a hospital
from being considered a rural entity under clause (i) or (ii) of
subparagraph (A).'.
(c) CONFORMING AMENDMENTS- Section 1602 of the Public Health Service Act
(42 U.S.C. 300q-2) is amended--
(1) in subsection (b)(2)(D), by inserting `or 1603(a)(2)(B)' after
`1601(a)(2)(B)'; and
(A) in paragraph (1)(C), by striking `section 1601(a)(2)(B)' and
inserting `sections 1601(a)(2)(B) and 1603(a)(2)(B)'; and
(B) in paragraph (2)(A), by inserting `or 1603(a)(2)(B)' after
`1601(a)(2)(B)'.
SEC. 447. GRANTS FOR UPGRADING DATA SYSTEMS.
(a) IN GENERAL- Part B of title XVI of the Public Health Service Act (42
U.S.C. 300r et seq.) is amended by adding at the end the following new
section:
`grants for upgrading data systems
`SEC. 1611. (a) GRANTS TO HOSPITALS-
`(1) IN GENERAL- The Secretary shall establish a program to make grants
to hospitals that have submitted applications in accordance with subsection
(c) to assist eligible small rural hospitals in offsetting the costs of
establishing data systems--
`(i) implement prospective payment systems under title XVIII of the
Social Security Act; and
`(ii) comply with the administrative simplification requirements
under part C of title XI of such Act; or
`(B) to reduce medication errors.
`(2) COSTS- For purposes of paragraph (1), the term `costs' shall
include costs associated with--
`(A) purchasing computer software and hardware; and
`(B) providing education and training to hospital staff on computer
information systems.
`(3) LIMITATION- A hospital that has received a grant under section 142
of the Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 2000
is not eligible to receive a grant under this section.
`(b) ELIGIBLE SMALL RURAL HOSPITAL DEFINED- For purposes of this section,
the term `eligible small rural hospital' means a non-Federal, short-term
general acute care hospital that--
`(1) is located in a rural area, as defined for purposes of section
1886(d) of the Social Security Act; and
`(2) has less than 50 beds.
`(c) APPLICATION- A hospital seeking a grant under this section shall
submit an application to the Secretary at such time and in such form and
manner as the Secretary specifies.
`(d) AMOUNT OF GRANT- A grant to a hospital under this section may not
exceed $100,000.
`(1) INFORMATION- A hospital receiving a grant under this section shall
furnish the Secretary with such information as the Secretary may require
to--
`(A) evaluate the project for which the grant is made; and
`(B) ensure that the grant is expended for the purposes for which it
is made.
`(2) TIMING OF SUBMISSION-
`(A) INTERIM REPORTS- The Secretary shall report to the Committee on
Commerce of the House of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate at least annually on the
grant program established under this section, including in such report
information on the number of grants made, the nature of the projects
involved, the geographic distribution of grant recipients, and such other
matters as the Secretary deems appropriate.
`(B) FINAL REPORT- The Secretary shall submit a final report to such
committees not later than 180 days after the completion of all of the
projects for which a grant is made under this section.
`(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be
appropriated such sums as may be necessary for grants under this section.'.
(b) CONFORMING AMENDMENT- Section 1820(g)(3) (42 U.S.C. 1395i-4(g)(3)) is
repealed.
SEC. 448. RELIEF FOR FINANCIALLY DISTRESSED RURAL HOSPITALS.
Title III of the Public Health Service Act (42 U.S.C. 241 et seq.) is
amended by inserting after section 330D the following new section:
`SEC. 330E. RELIEF FOR FINANCIALLY DISTRESSED RURAL HOSPITALS.
`(a) GRANTS TO SMALL RURAL HOSPITALS- The Secretary, acting through the
Health Resources and Services Administration, may award grants to eligible
small rural hospitals that have submitted applications in accordance with
subsection (c) to provide relief for financial distress that has a negative
impact on access to care for beneficiaries under the medicare program under
title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) that reside in
a rural area.
`(b) ELIGIBLE SMALL RURAL HOSPITAL DEFINED- For purposes of this
paragraph, the term `eligible small rural hospital' means a non-Federal,
short-term general acute care hospital that--
`(1) is located in a rural area (as defined for purposes of section
1886(d) of the Social Security Act (42 U.S.C. 1395ww(d))); and
`(2) has less than 50 beds.
`(c) APPLICATION AND APPROVAL-
`(1) APPLICATION- Each eligible small rural hospital that desires to
receive a grant under this paragraph shall submit an application to the
Secretary, at such time, in such form and manner, and accompanied by such
additional information as the Secretary may reasonably require.
`(2) APPROVAL- The Secretary shall approve applications submitted under
paragraph (1) based on a methodology developed by the Secretary in
consultation with the Office of Rural Health Policy.
`(d) AMOUNT OF GRANT- A grant to an eligible small rural hospital under
this paragraph may not exceed $250,000.
`(1) IN GENERAL- Except as provided in paragraph (2), an eligible small
rural hospital may use amounts received under a grant under this section to
temporarily offset financial operating losses, with emphasis on those losses
attributable to reimbursement formula changes that resulted from the
Balanced Budget Act of 1997, in order to ensure continued operation and
short-term sustainability or to address emergency physical capital needs
that might otherwise result in closure.
`(2) PROHIBITED USES- A hospital may not use funds received under a
grant under this section for new construction, the purchase of medical
equipment, or for computer software or hardware.
`(1) INFORMATION- A hospital receiving a grant under this section shall
furnish the Secretary with such information as the Secretary may require to
evaluate the project for which the grant is made and to ensure that the
grant is expended for the purposes for which it is made.
`(i) IN GENERAL- Not later than December 31 of each year (beginning
with 2001), the Secretary shall submit a report to the committees of
jurisdiction of the House of Representatives and the Senate on the grant
program established under this section.
`(ii) INFORMATION INCLUDED- The report submitted under clause (i)
shall include information on the number of grants made, the nature of
the projects involved, the geographic distribution of grant recipients,
and such other information as the Secretary determines is
appropriate.
`(B) FINAL REPORT- Not later than 180 days after the completion of all
of the projects for which a grant is made under this section, the
Secretary shall submit a final report on the grant program established
under this section to the committees described in subparagraph
(A).
`(g) APPROPRIATIONS- There are appropriated, out of any money in the
Treasury not otherwise appropriated, for making grants under this section
$25,000,000 for each of the fiscal years 2001 through 2005.'.
SEC. 449. REFINEMENT OF MEDICARE REIMBURSEMENT FOR TELEHEALTH SERVICES.
(a) REVISION OF TELEHEALTH PAYMENT METHODOLOGY AND ELIMINATION OF
FEE-SHARING REQUIREMENT- Section 4206(b) of the Balanced Budget Act of 1997
(42 U.S.C. 1395l note) is amended to read as follows:
`(b) METHODOLOGY FOR DETERMINING AMOUNT OF PAYMENTS-
`(1) IN GENERAL- The Secretary shall pay to--
`(A) the physician or practitioner at a distant site that provides an
item or service under subsection (a) an amount equal to the amount that
such physician or provider would have been paid had the item or service
been provided without the use of a telecommunications system; and
`(B) the originating site a facility fee for facility services
furnished in connection with such item or service.
`(2) APPLICATION OF PART B COINSURANCE AND DEDUCTIBLE- Any payment made
under this section shall be subject to the coinsurance and deductible
requirements under subsections (a)(1) and (b) of section 1833 of the Social
Security Act (42 U.S.C. 1395l).
`(3) DEFINITIONS- In this subsection:
`(A) DISTANT SITE- The term `distant site' means the site at which the
physician or practitioner is located at the time the item or
service is provided via a telecommunications system.
`(B) FACILITY FEE- The term `facility fee' means an amount equal
to--
`(i) for 2000 and 2001, $20; and
`(ii) for a subsequent year, the facility fee under this subsection
for the previous year increased by the percentage increase in the MEI
(as defined in section 1842(i)(3)) for such subsequent year.
`(i) IN GENERAL- The term `originating site' means the site
described in clause (ii) at which the eligible telehealth beneficiary
under the medicare program is located at the time the item or service is
provided via a telecommunications system.
`(ii) SITES DESCRIBED- The sites described in this paragraph are as
follows:
`(I) On or before January 1, 2002, the office of a physician or a
practitioner, a critical access hospital, a rural health clinic, and a
Federally qualified health center.
`(II) On or before January 1, 2003, a hospital, a skilled nursing
facility, a comprehensive outpatient rehabilitation facility, a renal
dialysis facility, an ambulatory surgical center, an Indian Health
Service facility, and a community mental health
center.'.
(b) ELIMINATION OF REQUIREMENT FOR TELEPRESENTER- Section 4206 of the
Balanced Budget Act of 1997 (42 U.S.C. 1395l note) is amended--
(1) in subsection (a), by striking `, notwithstanding that the
individual physician' and all that follows before the period at the end;
and
(2) by adding at the end the following new subsection:
`(e) TELEPRESENTER NOT REQUIRED- Nothing in this section shall be
construed as requiring an eligible telehealth beneficiary to be presented by a
physician or practitioner for the provision of an item or service via a
telecommunications system.'.
(c) REIMBURSEMENT FOR MEDICARE BENEFICIARIES WHO DO NOT RESIDE IN A HPSA-
Section 4206(a) of the Balanced Budget Act of 1997 (42 U.S.C. 1395l note), as
amended by subsection (b), is amended--
(1) by striking `IN GENERAL- Not later than' and inserting the
following: `TELEHEALTH SERVICES REIMBURSED-
`(1) IN GENERAL- Not later than';
(2) by striking `furnishing a service for which payment' and all that
follows before the period and inserting `to an eligible telehealth
beneficiary'; and
(3) by adding at the end the following new paragraph:
`(2) ELIGIBLE TELEHEALTH BENEFICIARY DEFINED- In this section, the term
`eligible telehealth beneficiary' means a beneficiary under the medicare
program under title XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.) that resides in--
`(A) an area that is designated as a health professional shortage area
under section 332(a)(1)(A) of the Public Health Service Act (42 U.S.C.
254e(a)(1)(A));
`(B) a county that is not included in a Metropolitan Statistical Area;
or
`(C) an inner-city area that is medically underserved (as defined in
section 330(b)(3) of the Public Health Service Act (42 U.S.C.
254b(b)(3))).'.
(d) TELEHEALTH COVERAGE FOR DIRECT PATIENT CARE-
(1) IN GENERAL- Section 4206 of the Balanced Budget Act of 1997 (42
U.S.C. 1395l note), as amended by subsection (c), is amended--
(A) in subsection (a)(1), by striking `professional consultation via
telecommunications systems with a physician' and inserting `items and
services for which payment may be made under such part that are furnished
via a telecommunications system by a physician'; and
(B) by adding at the end the following new subsection:
`(f) COVERAGE OF ITEMS AND SERVICES- Payment for items and services
provided pursuant to subsection (a) shall include payment for professional
consultations, office visits, office psychiatry services, including any
service identified as of July 1, 2000, by HCPCS codes 99241-99275,
99201-99215, 90804-90815, and 90862.'.
(2) STUDY AND REPORT REGARDING ADDITIONAL ITEMS AND SERVICES-
(A) STUDY- The Secretary of Health and Human Services shall conduct a
study to identify items and services in addition to those described in
section 4206(f) of the Balanced Budget Act of 1997 (as added by paragraph
(1)) that would be appropriate to provide payment under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.).
(B) REPORT- Not later than 2 years after the date of enactment of this
Act, the Secretary shall submit a report to Congress on the study
conducted under subparagraph (A) together with such recommendations for
legislation that the Secretary determines are appropriate.
(e) ALL PHYSICIANS AND PRACTITIONERS ELIGIBLE FOR TELEHEALTH
REIMBURSEMENT- Section 4206(a) of the Balanced Budget Act of 1997 (42 U.S.C.
1395l note), as amended by subsection (d), is amended--
(1) in paragraph (1), by striking `(described in section 1842(b)(18)(C)
of such Act (42 U.S.C. 1395u(b)(18)(C))'; and
(2) by adding at the end the following new paragraph:
`(3) PRACTITIONER DEFINED- For purposes of paragraph (1), the term
`practitioner' includes--
`(A) a practitioner described in section 1842(b)(18)(C) of the Social
Security Act (42 U.S.C. 1395u(b)(18)(C)); and
`(B) a physical, occupational, or speech therapist.'.
(f) TELEHEALTH SERVICES PROVIDED USING STORE-AND-FORWARD TECHNOLOGIES-
Section 4206(a)(1) of the Balanced Budget Act of 1997 (42 U.S.C. 1395l note),
as amended by subsection (e), is amended by adding at the end the following
new paragraph:
`(4) USE OF STORE-AND-FORWARD TECHNOLOGIES- For purposes of paragraph
(1), in the case of any Federal telemedicine demonstration program in Alaska
or Hawaii, the term `telecommunications system' includes store-and-forward
technologies that provide for the asynchronous transmission of health care
information in single or multimedia formats.'.
(g) FIVE-YEAR APPLICATION- The amendments made by this section shall apply
to items and services provided on or after April 1, 2001, and before April 1,
2006.
SEC. 450. MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL HEALTH CARE
PROVIDERS.
(a) STUDY- The Medicare Payment Advisory Commission established under
section 1805 of the Social Security Act (42 U.S.C. 1395b-6) (in this section
referred to as `MedPAC') shall conduct a study on the effect of low patient
and procedure volume on the financial status of low-volume, isolated rural
health care providers participating in the medicare program under title XVIII
of the Social Security Act (42 U.S.C. 1395 et seq.).
(b) REPORT- Not later than 18 months after the date of enactment of this
Act, MedPAC shall submit a report to the Secretary of Health and Human
Services and Congress on the study conducted under subsection (a)
indicating--
(1) whether low-volume, isolated rural health care providers are having,
or may have, significantly decreased medicare margins or other financial
difficulties resulting from any of the payment methodologies described in
subsection (c);
(2) whether the status as a low-volume, isolated rural health care
provider should be designated under the medicare program and any criteria
that should be used to qualify for such a status; and
(3) any changes in the payment methodologies described in subsection (c)
that are necessary to provide appropriate reimbursement under the medicare
program to low-volume, isolated rural health care providers (as designated
pursuant to paragraph (2)).
(c) PAYMENT METHODOLOGIES DESCRIBED- The payment methodologies described
in this subsection are the following:
(1) The prospective payment system for hospital outpatient department
services under section 1833(t) of the Social Security Act (42 U.S.C.
1395l).
(2) The fee schedule for ambulance services under section 1834(l) of
such Act (42 U.S.C. 1395m(l)).
(3) The prospective payment system for inpatient hospital services under
section 1886 of such Act (42 U.S.C. 1395ww).
(4) The prospective payment system for routine service costs of skilled
nursing facilities under section 1888(e) of such Act (42 U.S.C.
1395yy(e)).
(5) The prospective payment system for home health services under
section 1895 of such Act (42 U.S.C. 1395fff).
TITLE V--PROVISIONS RELATING TO PART C (MEDICARE+CHOICE PROGRAM) AND
OTHER MEDICARE MANAGED CARE PROVISIONS
SEC. 501. RESTORING EFFECTIVE DATE OF ELECTIONS AND CHANGES OF ELECTIONS OF
MEDICARE+CHOICE PLANS.
(a) OPEN ENROLLMENT- Section 1851(f)(2) (42 U.S.C. 1395w-21(f)(2)) is
amended by striking `, except that if such election or change is made after
the 10th day of any calendar month, then the election or change shall not take
effect until the first day of the second calendar month following the date on
which the election or change is made'.
(b) EFFECTIVE DATE- The amendment made by this section shall apply to
elections and changes of coverage made on or after January 1, 2001.
SEC. 502. SPECIAL MEDIGAP ENROLLMENT ANTIDISCRIMINATION PROVISION FOR
CERTAIN BENEFICIARIES.
(a) DISENROLLMENT WINDOW IN ACCORDANCE WITH BENEFICIARY'S CIRCUMSTANCE-
Section 1882(s)(3) (42 U.S.C. 1395ss(s)(3)) is amended--
(1) in subparagraph (A), in the matter following clause (iii), by
striking `, subject to subparagraph (E), seeks to enroll under the policy
not later than 63 days after the date of termination of enrollment described
in such subparagraph' and inserting `seeks to enroll under the policy during
the period specified in subparagraph (E)'; and
(2) by striking subparagraph (E) and inserting the following new
subparagraph:
`(E) For purposes of subparagraph (A), the time period specified in this
subparagraph is--
`(i) in the case of an individual described in subparagraph (B)(i), the
period beginning on the date the individual receives a notice of termination
or cessation of all supplemental health benefits (or, if no such notice is
received, notice that a claim has been denied because of such a termination
or cessation) and ending on the date that is 63 days after the applicable
notice;
`(ii) in the case of an individual described in clause (ii), (iii), (v),
or (vi) of subparagraph (B) whose enrollment is terminated involuntarily,
the period beginning on the date that the individual receives a notice of
termination and ending on the
date that is 63 days after the date the applicable coverage is terminated;
`(iii) in the case of an individual described in subparagraph
(B)(iv)(I), the period beginning on the earlier of (I) the date that the
individual receives a notice of termination, a notice of the issuer's
bankruptcy or insolvency, or other such similar notice, if any, and (II) the
date that the applicable coverage is terminated, and ending on the date that
is 63 days after the date the coverage is terminated;
`(iv) in the case of an individual described in clause (ii), (iii),
(iv)(II), (iv)(III), (v), or (vi) of subparagraph (B) who disenrolls
voluntarily, the period beginning on the date that is 60 days before the
effective date of the disenrollment and ending on the date that is 63 days
after such effective date; and
`(v) in the case of an individual described in subparagraph (B) but not
described in the preceding provisions of this subparagraph, the period
beginning on the effective date of the disenrollment and ending on the date
that is 63 days after such effective date.'.
(b) EXTENDED MEDIGAP ACCESS FOR INTERRUPTED TRIAL PERIODS- Section
1882(s)(3) (42 U.S.C. 1395ss(s)(3)), as amended by subsection (a), is amended
by adding at the end the following new subparagraph:
`(F) For purposes of this paragraph--
`(i) in the case of an individual described in subparagraph (B)(v) (or
deemed to be so described, pursuant to this subparagraph) whose enrollment
with an organization or provider described in subclause (II) of such
subparagraph is involuntarily terminated within the first 12 months of such
enrollment, and who, without an intervening enrollment, enrolls with another
such organization or provider, such subsequent enrollment shall be deemed to
be an initial enrollment described in such subparagraph; and
`(ii) in the case of an individual described in clause (vi) of
subparagraph (B) (or deemed to be so described, pursuant to this
subparagraph) whose enrollment with a plan or in a program described in
clause (v)(II) of such subparagraph is involuntarily terminated within the
first 12 months of such enrollment, and who, without an intervening
enrollment, enrolls in another such plan or program, such subsequent
enrollment shall be deemed to be an initial enrollment described in clause
(vi) of such subparagraph.'.
SEC. 503. INCREASE IN NATIONAL PER CAPITA MEDICARE+CHOICE GROWTH PERCENTAGE
IN 2001 AND 2002.
Section 1853(c)(6)(B) of the Social Security Act (42 U.S.C.
1395w-23(c)(6)(B)) is amended--
(1) in clause (iv), by striking `for 2001, 0.5 percentage points' and
inserting `for 2001, 0 percentage points'; and
(2) in clause (v), by striking `for 2002, 0.3 percentage points' and
inserting `for 2002, 0 percentage points'.
SEC. 504. ALLOWING MOVEMENT TO 50:50 PERCENT BLEND IN 2002.
Section 1853(c)(2) of the Social Security Act (42 U.S.C. 1395w-23(c)(2))
is amended--
(1) by striking the period at the end of subparagraph (F) and inserting
a semicolon; and
(2) by adding after and below subparagraph (F) the following:
`except that a Medicare+Choice organization may elect to apply
subparagraph (F) (rather than subparagraph (E)) for 2002.'.
SEC. 505. DELAY FROM JULY TO NOVEMBER 2000, IN DEADLINE FOR OFFERING AND
WITHDRAWING MEDICARE+CHOICE PLANS FOR 2001.
Notwithstanding any other provision of law, the deadline for a
Medicare+Choice organization to withdraw the offering of a Medicare+Choice
plan under part C of title XVIII of the Social Security Act (or otherwise to
submit information required for the offering of such a plan) for 2001 is
delayed from July 1, 2000, to November 1, 2000, and any such organization that
provided notice of withdrawal of such a plan during 2000 before the date of
enactment of this Act may rescind such withdrawal at any time before November
1, 2000.
SEC. 506. AMOUNTS IN MEDICARE TRUST FUNDS AVAILABLE FOR SECRETARY'S SHARE OF
MEDICARE+CHOICE EDUCATION AND ENROLLMENT-RELATED COSTS.
(a) RELOCATION OF PROVISIONS- Section 1857(e)(2) (42 U.S.C.
1395w-27(e)(2)) is amended to read as follows:
`(2) COST-SHARING IN ENROLLMENT-RELATED COSTS- A Medicare+Choice
organization shall pay the fee established by the Secretary under section
1851(j)(3)(A).'.
(b) FUNDING FOR EDUCATION AND ENROLLMENT ACTIVITIES- Section 1851 (42
U.S.C. 1395w-21) is amended by adding at the end the following new
subsection:
`(j) FUNDING FOR BENEFICIARY EDUCATION AND ENROLLMENT ACTIVITIES-
`(1) SECRETARY'S ESTIMATE OF TOTAL COSTS- The Secretary shall annually
estimate the total cost for a fiscal year of carrying out this section,
section 4360 of the Omnibus Budget Reconciliation Act of 1990 (relating to
the health insurance counseling and assistance program), and related
activities.
`(2) TOTAL AMOUNT AVAILABLE- The total amount available to the Secretary
for a fiscal year for the costs of the activities described in paragraph (1)
shall be equal to the lesser of--
`(A) the amount estimated for such fiscal year under paragraph (1);
or
`(i) fiscal year 2001, $130,000,000; and
`(ii) fiscal year 2002 and each subsequent fiscal year, the amount
for the previous fiscal year, adjusted to account for inflation, any
change in the number of
beneficiaries under this title, and any other relevant factors.
`(3) COST-SHARING IN ENROLLMENT-RELATED COSTS-
`(A) AMOUNTS FROM MEDICARE+CHOICE ORGANIZATIONS-
`(i) IN GENERAL- The Secretary is authorized to charge a fee to each
Medicare+Choice organization with a contract under this part that is
equal to the organization's pro rata share (as determined by the
Secretary) of the Medicare+Choice portion (as defined in clause (ii)) of
the total amount available under paragraph (2) for a fiscal year. Any
amounts collected shall be available without further appropriation to
the Secretary for the costs of the activities described in paragraph
(1).
`(ii) MEDICARE+CHOICE PORTION DEFINED- For purposes of clause (i),
the term `Medicare+Choice portion' means, for a fiscal year, the ratio,
as estimated by the Secretary, of--
`(I) the average number of individuals enrolled in Medicare+Choice
plans during the fiscal year; to
`(II) the average number of individuals entitled to benefits under
parts A, and enrolled under part B, during the fiscal
year.
`(i) AMOUNTS AVAILABLE FROM TRUST FUNDS- The Secretary's share of
expenses shall be payable from funds in the Federal Hospital Insurance
Trust Fund and the Federal Supplementary Medical Insurance Trust Fund,
in such proportion as the Secretary shall deem to be fair and equitable
after taking into consideration the expenses attributable to the
administration of this part with respect to part A and B. The Secretary
shall make such transfers of moneys between such Trust Funds as may be
appropriate to settle accounts between the Trust Funds in cases where
expenses properly payable from one such Trust Fund have been paid from
the other such Trust Fund.
`(ii) SECRETARY'S SHARE OF EXPENSES DEFINED- For purposes of clause
(i), the term `Secretary's share of expenses' means, for a fiscal year,
an amount equal to--
`(I) the total amount available to the Secretary under paragraph
(2) for the fiscal year; less
`(II) the amount collected under subparagraph (A) for the fiscal
year.'.
SEC. 507. REVISED TERMS AND CONDITIONS FOR EXTENSION OF MEDICARE COMMUNITY
NURSING ORGANIZATION (CNO) DEMONSTRATION PROJECT.
(a) IN GENERAL- Section 532 of BBRA (42 U.S.C. 1395mm note) is
amended--
(1) in subsection (a), by striking the second sentence; and
(2) by striking subsection (b) and inserting the following new
subsections:
`(b) TERMS AND CONDITIONS-
`(1) JANUARY THROUGH SEPTEMBER 2000- For the 9-month period beginning
with January 2000, any such demonstration project shall be conducted under
the same terms and conditions as applied to such demonstration during
1999.
`(2) OCTOBER 2000 THROUGH DECEMBER 2001- For the 15-month period
beginning with October 2000, any such demonstration project shall be
conducted under the same terms and conditions as applied to such
demonstration during 1999, except that the following modifications shall
apply:
`(A) BASIC CAPITATION RATE- The basic capitation rate paid for
services covered under the project (other than case management services)
per enrollee per month shall be basic capitation rate paid for such
services for 1999, reduced by 10 percent in the case of the demonstration
sites located in Arizona, Minnesota, and Illinois, and 15 percent for the
demonstration site located in New York.
`(B) TARGETED CASE MANAGEMENT FEE- A case management fee shall be paid
only for enrollees who are classified as `moderate' or `at risk' through a
baseline health assessment (as required for Medicare+Choice plans under
section 1852(e) of the Social Security Act (42 U.S.C.
1395ww-22(e)).
`(C) GREATER UNIFORMITY IN CLINICAL FEATURES AMONG SITES- Each project
shall implement for each site--
`(i) protocols for periodic telephonic contact with enrollees based
on--
`(I) the results of such standardized written health assessment;
and
`(II) the application of appropriate care planning
approaches;
`(ii) disease management programs for targeted diseases (such as
congestive heart failure, arthritis, diabetes, and hypertension) that
are highly prevalent in the enrolled populations;
`(iii) systems and protocols to track enrollees through
hospitalizations, including pre-admission planning, concurrent
management during inpatient hospital stays, and post-discharge
assessment, planning, and follow-up; and
`(iv) standardized patient educational materials for specified
diseases and health conditions.
`(D) QUALITY IMPROVEMENT- Each project shall implement at each site
once during the 15-month period--
`(i) enrollee satisfaction surveys; and
`(ii) reporting on specified quality indicators for the enrolled
population.
`(1) PRELIMINARY REPORT- Not later than July 1, 2001, the Secretary of
Health and Human Services shall submit to the Committees on Ways and Means
and Commerce of the House of Representatives and the Committee on Finance of
the Senate a preliminary report that--
`(A) evaluates such demonstration projects for the period beginning
July 1, 1997, and ending December 31, 1999, on a site-specific basis with
respect to the impact on per beneficiary spending, specific health
utilization measures, and enrollee satisfaction; and
`(B) includes a similar evaluation of such projects for the portion of
the extension period that occurs after September 30, 2000.
`(2) FINAL REPORT- Not later than July 1, 2002, the Secretary shall
submit a final report to such Committees on such demonstration projects.
Such report shall include the same elements as the preliminary report
required by paragraph (1), but for the period after December 31, 1999.
`(3) METHODOLOGY FOR SPENDING COMPARISONS- Any evaluation of the impact
of the demonstration projects on per beneficiary spending included in such
reports shall be based on a comparison of--
`(A) data for all individuals who--
`(i) were enrolled in such demonstration projects as of the first
day of the period under evaluation; and
`(ii) were enrolled for a minimum of 6 months thereafter;
with
`(B) data for a matched sample of individuals who are enrolled under
part B of title XVIII of the Social Security Act (42 U.S.C. 1395j et seq.)
and who are not enrolled in such a project, in a Medicare+Choice plan
under part C of such title (42 U.S.C. 1395w-21 et seq.), a plan offered by
an eligible organization under section 1876 of such Act (42 U.S.C.
1395mm), or a health care prepayment plan under section 1833(a)(1)(A) of
such Act (42 U.S.C. 1395l(a)(1)(A)).'.
(b) EFFECTIVE DATE- The amendments made by subsection (a) shall be
effective as if included in the enactment of section 532 of BBRA (42 U.S.C.
1395mm note).
SEC. 508. MODIFICATION OF PAYMENT RULES FOR CERTAIN FRAIL ELDERLY MEDICARE
BENEFICIARIES.
(a) MODIFICATION OF PAYMENT RULES- Section 1853 (42 U.S.C. 1395w-23) is
amended--
(A) in paragraph (1)(A), by striking `subsections (e), (g), and (i)'
and inserting `subsections (e), (g), (i), and (j)';
(B) in paragraph (3)(D), by inserting `paragraph (4) and' after
`Subject to'; and
(C) by adding at the end the following new paragraph:
`(4) Exemption from risk-adjustment system for frail elderly
beneficiaries enrolled in specialized programs-
`(A) IN GENERAL- In applying the risk-adjustment factors established
under paragraph (3) during the period described in subparagraph (B), the
limitation under paragraph (3)(C)(ii)(I) shall apply to a frail elderly
Medicare+Choice beneficiary (as defined in subsection (j)(3)) who is
enrolled in a Medicare+Choice plan under a specialized program for the
frail elderly (as defined in subsection (j)(2)) during the entire
period.
`(B) PERIOD OF APPLICATION- The period described in this subparagraph
begins with January 2001, and ends with the first month for which the
Secretary certifies to Congress that a comprehensive risk adjustment
methodology under paragraph (3)(C) that takes into account the factors
described in subsection (j)(1)(B) is being fully implemented.';
and
(2) by adding at the end the following new subsection:
`(j) SPECIAL RULES FOR FRAIL ELDERLY ENROLLED IN SPECIALIZED PROGRAMS FOR
THE FRAIL ELDERLY-
`(1) DEVELOPMENT AND IMPLEMENTATION OF NEW PAYMENT SYSTEM-
`(A) IN GENERAL- The Secretary shall develop and implement (as soon as
possible after the date of enactment of the Medicare, Medicaid, and SCHIP
Balanced Budget Refinement Act of 2000), during the period described in
subsection (a)(4)(B), a payment methodology for frail elderly
Medicare+Choice beneficiaries enrolled in a Medicare+Choice plan under a
specialized program for the frail elderly (as defined in paragraph
(2)(A)).
`(B) FACTORS DESCRIBED- The methodology developed and implemented
under subparagraph (A) shall take into account the prevalence, mix, and
severity of chronic conditions among frail elderly Medicare+Choice
beneficiaries and shall include--
`(i) medical diagnostic factors from all provider settings
(including hospital and nursing facility settings);
`(ii) functional indicators of health status; and
`(iii) such other factors as may be necessary to achieve appropriate
payments for plans serving such beneficiaries.
`(2) SPECIALIZED PROGRAM FOR THE FRAIL ELDERLY DEFINED-
`(A) IN GENERAL- In this part, the term `specialized program for the
frail elderly' means a program that the Secretary determines--
`(i) is offered under this part as a distinct part of a
Medicare+Choice plan;
`(ii) primarily enrolls frail elderly Medicare+Choice beneficiaries;
and
`(iii) has a clinical delivery system that is specifically designed
to serve the special needs of such beneficiaries and to coordinate
short-term and long-term care for such beneficiaries through the use of
a team described in subparagraph (B) and through the provision of
primary care services to such beneficiaries by means of such a team at
the nursing facility involved.
`(B) SPECIALIZED TEAM DESCRIBED- A team described in this
subparagraph--
`(II) a nurse practitioner or geriatric care manager;
and
`(ii) has as members individuals who--
`(I) have special training in the care and management of the frail
elderly beneficiaries; and
`(II) specialize in the care and management of such
beneficiaries.
`(3) FRAIL ELDERLY MEDICARE+CHOICE BENEFICIARY DEFINED- In this part,
the term `frail elderly Medicare+Choice beneficiary' means a Medicare+Choice
eligible individual who--
`(A) is residing in a skilled nursing facility (as defined in section
1819(a)) or a nursing facility (as defined in section 1919(a)) for an
indefinite period and without any intention of residing outside the
facility; and
`(B) has a severity of condition that makes the individual frail (as
determined under guidelines approved by the Secretary).'.
(b) EFFECTIVE DATE- The amendments made by this section shall take effect
on the date of enactment of this Act.
TITLE VI--PROVISIONS RELATING TO INDIVIDUALS WITH END-STAGE RENAL
DISEASE
SEC. 601. UPDATE IN RENAL DIALYSIS COMPOSITE RATE.
(a) IN GENERAL- The last sentence of section 1881(b)(7) (42 U.S.C.
1395rr(b)(7)) is amended by striking `, and for such services' and all that
follows before the period at the end and inserting the following: `, for such
services furnished during 2001, by 2.4 percent above such composite rate
payment amounts for such services furnished on December 31, 2000, for such
services furnished during 2002 and 2003, by the percentage increase in the
Consumer Price Index for all urban consumers (U.S. city average) for the
12-month period ending with June of the previous year above such composite
rate payment amounts for such services furnished on December 31 of the
previous year, and for such services furnished during a subsequent year, by
the ESRD market basket percentage increase above such composite rate payment
amounts for such services furnished on December 31 of the previous year'.
(b) ESRD MARKET BASKET PERCENTAGE INCREASE DEFINED- Section 1881(b) (42
U.S.C. 1395rr(b)) is amended by adding at the end the following new
paragraph:
`(12)(A) For purposes of this title, the term `ESRD market basket
percentage increase' means, with respect to a calendar year, the percentage
(estimated by the Secretary before the beginning of such year) by which--
`(i) the cost of the mix of goods and services included in the provision
of dialysis services (which may include the costs described in subparagraph
(D) as determined appropriate by the Secretary) that is determined based on
an index of appropriately weighted indicators of changes in wages and prices
which are representative of the mix of goods and services included in such
dialysis services for the calendar year; exceeds
`(ii) the cost of such mix of goods and services for the preceding
calendar year.
`(B) In determining the percentage under subparagraph (A), the Secretary
may take into account any increase in the costs of furnishing the mix of goods
and services described in such subparagraph resulting from--
`(i) the adoption of scientific and technological innovations used to
provide dialysis services; and
`(ii) changes in the manner or method of delivering dialysis
services.
`(C) The Secretary shall periodically review and update (as necessary) the
items and services included in the mix of goods and services used to determine
the percentage under subparagraph (A).
`(D) The costs described in this subparagraph include--
`(i) labor, including direct patient care costs and administrative labor
costs, vacation and holiday pay, payroll taxes, and employee benefits;
`(ii) other direct costs, including drugs, supplies, and laboratory
fees;
`(iii) overhead, including medical director fees, temporary services,
general and administrative costs, interest expenses, and bad debt;
`(iv) capital, including rent, real estate taxes, depreciation,
utilities, repairs, and maintenance; and
`(v) such other allowable costs as the Secretary may specify.'.
SEC. 602. REVISION OF PAYMENT RATES FOR ESRD PATIENTS ENROLLED IN
MEDICARE+CHOICE PLANS.
(a) IN GENERAL- Section 1853(a)(1)(B) (42 U.S.C. 1395w-23(a)(1)(B)) is
amended by adding at the end the following: `In establishing such rates the
Secretary shall provide for appropriate adjustments to increase each rate to
reflect the demonstration rate (including any risk-adjustment associated with
such rate) of the social health maintenance organization end-stage renal
disease demonstrations established by section 2355 of the Deficit Reduction
Act of 1984 (Public Law 98-369; 98 Stat. 1103), as amended by section 13567(b)
of the Omnibus Budget Reconciliation Act of 1993 (Public Law 103-66; 107 Stat.
608), and shall compute such rates by not taking into account individuals with
kidney transplants and individuals in which the program under this title is a
secondary payer
to another payer (or payers) pursuant to section 1862(b).'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
payments for months beginning with January 2002.
(c) PUBLICATION- The Secretary of Health and Human Services, not later
than 6 months after the date of enactment of this Act, shall publish for
public comment a description of the appropriate adjustments described in the
last sentence of section 1853(a)(1)(B) of the Social Security Act (42 U.S.C.
1395w-23(a)(1)(B)), as added by subsection (a). The Secretary shall publish in
final form such adjustments by not later than July 1, 2001, so that the
amendment made by subsection (a) is implemented on a timely basis consistent
with subsection (b).
SEC. 603. PERMITTING ESRD BENEFICIARIES TO ENROLL IN ANOTHER MEDICARE+CHOICE
PLAN IF THE PLAN IN WHICH THEY ARE ENROLLED IS TERMINATED.
(a) IN GENERAL- Section 1851(a)(3)(B) (42 U.S.C. 1395w-21(a)(3)(B)) is
amended by striking `except that' and all that follows and inserting the
following: `except that--
`(i) an individual who develops end-stage renal disease while
enrolled in a Medicare+Choice plan may continue to be enrolled in that
plan; and
`(ii) in the case of such an individual who is enrolled in a
Medicare+Choice plan under clause (i) (or subsequently under this
clause), if the enrollment is discontinued under circumstances described
in section 1851(e)(4)(A) then the individual will be treated as a
`Medicare+Choice eligible individual' for purposes of electing to
continue enrollment in another Medicare+Choice plan.'.
(1) IN GENERAL- The amendment made by subsection (a) shall apply to
terminations and discontinuations occurring on or after the date of
enactment of this Act.
(2) APPLICATION TO PRIOR PLAN TERMINATIONS- Clause (ii) of section
1851(a)(3)(B) of the Social Security Act (as inserted by subsection (a))
also shall apply to individuals whose enrollment in a Medicare+Choice plan
was terminated or discontinued after December 31, 1997, and before the date
of enactment of this Act. In applying this paragraph, such an individual
shall be treated, for purposes of part C of title XVIII of the Social
Security Act, as having discontinued enrollment in such a plan as of the
date of enactment of this Act.
SEC. 604. COVERAGE OF CERTAIN VASCULAR ACCESS SERVICES FOR ESRD
BENEFICIARIES PROVIDED BY AMBULATORY SURGICAL CENTERS.
(a) IN GENERAL- The matter following subparagraph (B) of section
1833(i)(1) (42 U.S.C. 1395l(i)(1)) is amended by adding at the end the
following new sentence: `Such lists shall include the procedures identified as
of July 30, 1999, by vascular access codes 34101, 34111, 34490, 35190, 35458,
35460, 35475, 35476, 35903, 36005, 36010, 36011, 36120, 36140, 36145,
36215-36218, 36831-36834, 37201, 37204-37208, 37250, 37251, and 49423.'.
(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to
vascular access services furnished on or after January 1, 2000.
SEC. 605. COLLECTION AND ANALYSIS OF INFORMATION ON THE SATISFACTION OF ESRD
BENEFICIARIES WITH THE QUALITY OF AND ACCESS TO HEALTH CARE UNDER THE MEDICARE
PROGRAM.
(a) COLLECTION OF INFORMATION- The Secretary shall collect information on
the satisfaction of each ESRD medicare beneficiary with the quality of health
care under the original fee-for-service medicare program and the
Medicare+Choice program, and the access of each beneficiary to that care.
(b) ANALYSIS OF COLLECTED INFORMATION-
(1) IN GENERAL- The Secretary shall conduct an analysis of the
information collected under subsection (a) to determine--
(A) the kinds of health care that each non-dialysis health care
provider provides to each ESRD medicare beneficiary for the treatment of
end-stage renal disease and each comorbidity;
(B) the effect of the availability of supplemental insurance on the
use by beneficiary of health care;
(C) the perceptions of each beneficiary regarding the access of that
beneficiary to health care; and
(D) the quality of health care provided to each ESRD medicare
beneficiary enrolled under the Medicare+Choice program compared to each
beneficiary enrolled under the original fee-for-service medicare
program.
(2) CONSIDERATIONS- In conducting the analysis under paragraph (1), the
Secretary shall consider--
(A) the feasibility of routinely collecting information on the
satisfaction of each ESRD medicare beneficiary with dialysis and
non-dialysis health care;
(B) whether to collect information using disease specific questions or
generic questions (similar to those used in conducting the Medicare
Current Beneficiary Survey);
(C) how well collected information detects access problems within each
specific group of ESRD medicare beneficiaries, including beneficiaries
without supplemental insurance and beneficiaries that reside in a rural
area; and
(D) each obstacle that a health care provider may face in offering
each type of dialysis service.
(c) AVAILABILITY OF INFORMATION AND ANALYSIS- Not later than January 1 of
each year (beginning in 2002) the Secretary shall make the information
collected under subsection (a) and the analysis conducted under subsection (b)
available to the public.
(d) DEFINITIONS- In this section:
(1) ESRD MEDICARE BENEFICIARY- The term `ESRD medicare beneficiary'
means an individual eligible for benefits under the medicare program that
has end-stage renal disease (including an individual enrolled in a
Medicare+Choice plan offered by a Medicare+Choice organization under the
Medicare+Choice program).
(2) MEDICARE+CHOICE PROGRAM- The term `Medicare+Choice program' means
the program established under part C of title XVIII of the Social Security
Act (42 U.S.C. 1395w-21 et seq.).
(3) ORIGINAL FEE-FOR-SERVICE MEDICARE PROGRAM- The term `original
fee-for-service medicare program' means the health benefits program under
parts A and B title XVIII of the Social Security Act (42 U.S.C. 1395 et
seq.).
(4) SECRETARY- The term `Secretary' means the Secretary of Health and
Human Services, acting through the Administrator of the Health Care
Financing Administration.
TITLE VII--ACCESS TO CARE IMPROVEMENTS THROUGH MEDICAID AND
SCHIP
SEC. 701. NEW PROSPECTIVE PAYMENT SYSTEM FOR FEDERALLY-QUALIFIED HEALTH
CENTERS AND RURAL HEALTH CLINICS.
(a) IN GENERAL- Section 1902(a) (42 U.S.C. 1396a(a)) is amended--
(A) in subparagraph (A), by adding `and' at the end;
(B) in subparagraph (B), by striking `and' at the end; and
(C) by striking subparagraph (C); and
(2) by inserting after paragraph (14) the following new paragraph:
`(15) for payment for services described in subparagraph (B) or (C) of
section 1905(a)(2) under the plan in accordance with subsection
(aa);'.
(b) NEW PROSPECTIVE PAYMENT SYSTEM- Section 1902 (42 U.S.C. 1396a) is
amended by adding at the end the following:
`(aa) PAYMENT FOR SERVICES PROVIDED BY FEDERALLY-QUALIFIED HEALTH CENTERS
AND RURAL HEALTH CLINICS-
`(1) IN GENERAL- Beginning with fiscal year 2001 and each succeeding
fiscal year, the State plan shall provide for payment for services described
in section 1905(a)(2)(C) furnished by a Federally-qualified health center
and services described in section 1905(a)(2)(B) furnished by a rural health
clinic in accordance with the provisions of this subsection.
`(2) FISCAL YEAR 2001- Subject to paragraph (4), for services furnished
during fiscal year 2001, the State plan shall provide for payment for such
services in an amount (calculated on a per visit basis) that is equal to 100
percent of the costs of the center or clinic of furnishing such services
during fiscal year 2000 which are reasonable and related to the cost of
furnishing such services, or based on such other tests of reasonableness as
the Secretary prescribes in regulations under section 1833(a)(3), or, in the
case of services to which such regulations do not apply, the same
methodology used under section 1833(a)(3), adjusted to take into account any
increase in the scope of such services furnished by the center or clinic
during fiscal year 2001.
`(3) FISCAL YEAR 2002 AND SUCCEEDING FISCAL YEARS- Subject to paragraph
(4), for services furnished during fiscal year 2002 or a succeeding fiscal
year, the State plan shall provide for payment for such services in an
amount (calculated on a per visit basis) that is equal to the amount
calculated for such services under this subsection for the preceding fiscal
year--
`(A) increased by the percentage increase in the MEI (as defined in
section 1842(i)(3)) applicable to primary care services (as defined in
section 1842(i)(4)) for that fiscal year; and
`(B) adjusted to take into account any increase in the scope of such
services furnished by the center or clinic during that fiscal
year.
`(4) ESTABLISHMENT OF INITIAL YEAR PAYMENT AMOUNT FOR NEW CENTERS OR
CLINICS- In any case in which an entity first qualifies as a
Federally-qualified health center or rural health clinic after fiscal year
2000, the State plan shall provide for payment for services described in
section 1905(a)(2)(C) furnished by the center or services described in
section 1905(a)(2)(B) furnished by the clinic in the first fiscal year in
which the center or clinic so qualifies in an amount (calculated on a per
visit basis) that is equal to 100 percent of the costs of furnishing such
services during such fiscal year in accordance with the regulations and
methodology referred to in paragraph (2). For each fiscal year following the
fiscal year in which the entity first qualifies as a Federally-qualified
health center or rural health clinic, the State plan shall provide for the
payment amount to be calculated in accordance with paragraph (3).
`(5) ADMINISTRATION IN THE CASE OF MANAGED CARE- In the case of services
furnished by a Federally-qualified health center or rural health clinic
pursuant to a contract between the center or clinic and a managed care
entity (as defined in section 1932(a)(1)(B)), the State plan shall provide
for payment to the center or clinic (at least quarterly) by the State of a
supplemental payment equal to the amount (if any) by which the amount
determined under paragraphs (2), (3), and (4) of this subsection exceeds the
amount of the payments provided under the contract.
`(6) ALTERNATIVE PAYMENT METHODOLOGIES- Notwithstanding any other
provision of this section, the State plan may provide for payment in any
fiscal year to a Federally-qualified health center for services described in
section 1905(a)(2)(C) or to a rural health clinic for services described in
section
1905(a)(2)(B) in an amount which is determined under an alternative payment
methodology that--
`(A) is agreed to by the State and the center or clinic; and
`(B) results in payment to the center or clinic of an amount which is
at least equal to the amount otherwise required to be paid to the center
or clinic under this section.'.
(c) CONFORMING AMENDMENTS-
(1) Section 4712 of BBA (111 Stat. 508) is amended by striking
subsection (c).
(2) Section 1915(b) (42 U.S.C. 1396n(b)) is amended by striking
`1902(a)(13)(E)' and inserting `1902(a)(15), 1902(aa),'.
(d) EFFECTIVE DATE- The amendments made by this section take effect on
October 1, 2000, and apply to services furnished on or after such date.
SEC. 702. TRANSITIONAL MEDICAL ASSISTANCE.
(a) MAKING PROVISION PERMANENT-
(1) IN GENERAL- Subsection (f) of section 1925 (42 U.S.C. 1396r-6) is
repealed.
(2) CONFORMING AMENDMENT- Section 1902(e)(1) (42 U.S.C. 1396a(e)(1)) is
repealed.
(b) STATE OPTION OF INITIAL 12-MONTH ELIGIBILITY- Section 1925 (42 U.S.C.
1396r-6) is amended--
(1) in subsection (a), by adding at the end the following new
paragraph:
`(5) OPTION OF 12-MONTH INITIAL ELIGIBILITY PERIOD- A State may elect to
treat any reference in this subsection to a 6-month period (or 6 months) as
a reference to a 12-month period (or 12 months). In the case of such an
election, subsection (b) shall not apply.'; and
(2) in subsection (b)(1), by inserting `and subsection (a)(5)' after
`paragraph (3)'.
(c) SIMPLIFICATION OPTIONS-
(1) REMOVAL OF ADMINISTRATIVE REPORTING REQUIREMENTS FOR ADDITIONAL
6-MONTH EXTENSION- Section 1925(b) (42 U.S.C. 1396r-6(b)) is amended--
(i) in the heading, by striking `AND REPORTING';
(ii) by striking subparagraph (B);
(iii) in subparagraph (A)(i)--
(I) by striking `(I)' and all that follows through `(II)' and
inserting `(i)';
(II) by striking `, and (III)' and inserting `and (ii)';
and
(III) by redesignating such subparagraph as subparagraph (A) (with
appropriate indentation); and
(iv) in subparagraph (A)(ii)--
(I) by striking `notify the family of the reporting requirement
under subparagraph (B)(ii) and a statement of' and inserting `provide
the family with notification of'; and
(II) by redesignating such subparagraph as subparagraph (B) (with
appropriate indentation);
(B) in paragraph (3)(A)--
(I) in the heading, by striking `REPORTING AND
TEST';
(II) by striking subclause (I); and
(III) by redesignating subclauses (II) and (III) as subclauses (I)
and (II), respectively; and
(ii) by striking the last 3 sentences; and
(C) in paragraph (3)(B), by striking `subparagraph (A)(iii)(II)' and
inserting `subparagraph (A)(iii)(I)'.
(2) EXEMPTION FOR STATES COVERING NEEDY FAMILIES UP TO 185 PERCENT OF
POVERTY- Section 1925 (42 U.S.C. 1396r-6), as amended by subsection (a), is
amended--
(A) in each of subsections (a)(1) and (b)(1), by inserting `but
subject to subsection (f),' after `Notwithstanding any other provision of
this title,'; and
(B) by adding at the end the following new subsection:
`(f) EXEMPTION FOR STATE COVERING NEEDY FAMILIES UP TO 185 PERCENT OF
POVERTY- At State option, the provisions of this section shall not apply to a
State that uses the authority under section 1931(b)(2)(C) to make medical
assistance available under the State plan under this title, at a minimum, to
all individuals described in section 1931(b)(1) in families with gross incomes
(determined without regard to work-related child care expenses of such
individuals) at or below 185 percent of the income official poverty line (as
defined by the Office of Management and Budget, and revised annually in
accordance with section 673(2) of the Omnibus Budget Reconciliation Act of
1981) applicable to a family of the size involved.'.
(3) STATE OPTION TO ELECT SHORTER PERIOD FOR REQUIREMENT FOR RECEIPT OF
MEDICAL ASSISTANCE AS A CONDITION OF ELIGIBILITY FOR TRANSITIONAL MEDICAL
ASSISTANCE- Section 1925(a)(1) (42 U.S.C. 1396r-6(a)(1)) is amended by
inserting `(or such shorter period as the State may elect)' after `3'.
(d) APPLICATION OF NOTICE OF ELIGIBILITY TO ALL FAMILIES LEAVING WELFARE-
Section 1925(a) (42 U.S.C. 1396r-6(a)), as amended by subsection (b)(1), is
amended by adding at the end the following new paragraph:
`(6) NOTICE OF ELIGIBILITY FOR MEDICAL ASSISTANCE TO ALL FAMILIES
LEAVING TANF- Each State shall notify each family which was receiving
assistance under the State program funded under part A of title IV and which
is no longer eligible for such assistance, of the potential eligibility of
the
family and any individual members of such family for medical assistance under
this title or child health assistance under title XXI. Such notice shall include
a statement that the family does not have to be receiving assistance under the
State program funded under part A of title IV in order to be eligible for such
medical assistance or child health assistance.'.
(e) ENROLLMENT DATA- Section 1925 (42 U.S.C. 1396r-6), as amended by
subsection (c)(2)(B), is amended by adding at the end the following new
subsection:
`(g) ENROLLMENT DATA- The Secretary annually shall obtain from each State
with a State plan approved under this title enrollment data regarding--
`(1) the number of adults and children who--
`(A) receive medical assistance under this title based on eligibility
under section 1931;
`(B) at the time they were first determined to be eligible for such
medical assistance, also received cash assistance under the State program
funded under part A of title IV; and
`(C) subsequently ceased to receive assistance under such State
program due to increased earnings or increased child support
income;
`(2) the percentage of the adults and children described in paragraph
(1) who receive transitional medical assistance under this section or
otherwise remain enrolled in the program under this title; and
`(3) the percentage of such adults and children that receive such
transitional medical assistance for more than 6 months or that remain
enrolled in the program under this title for more than 6 months after such
adults or children ceased to receive assistance under the State program
funded under part A of title IV.'.
(f) EFFECTIVE DATE- The amendments made by this section take effect on
October 1, 2000.
SEC. 703. APPLICATION OF SIMPLIFIED SCHIP PROCEDURES UNDER THE MEDICAID
PROGRAM.
(a) COORDINATION WITH MEDICAID-
(1) IN GENERAL- Section 1902(l) (42 U.S.C. 1396a(l)) is amended--
(A) in paragraph (3), by inserting `subject to paragraph (5)', after
`Notwithstanding subsection (a)(17),'; and
(B) by adding at the end the following new paragraph:
`(5) With respect to determining the eligibility of individuals under 19
years of age for medical assistance under subsection (a)(10)(A)(i)(IV),
(a)(10)(A)(i)(VI), (a)(10)(A)(i)(VII), (a)(10)(A)(ii)(IX), or
(a)(10)(A)(ii)(XIV), notwithstanding any other provision of this title, if the
State has established a State child health plan under title XXI, or expanded
coverage beyond the income eligibility standards required for such individuals
under this title under a waiver granted under section 1115--
`(A) the State may not apply a resource standard if the State does not
apply such a standard under such child health plan or section 1115 waiver
with respect to such individuals;
`(B) the State shall use the same simplified eligibility form
(including, if applicable, permitting application other than in person) as
the State uses under such State child health plan or section 1115 waiver
with respect to such individuals;
`(C) the State shall provide for initial eligibility determinations and
redeterminations of eligibility using the same verification policies, forms,
and frequency as the State uses for such purposes under such State child
health plan or section 1115 waiver with respect to such individuals;
and
`(D) the State shall not require a face-to-face interview for purposes
of initial eligibility determinations and redeterminations unless the State
required such an interview for such purposes under such child health plan or
section 1115 waiver with respect to such individuals.'.
(2) EFFECTIVE DATE- The amendments made by paragraph (1) take effect on
October 1, 2000, and apply to eligibility determinations and
redeterminations made on or after such date.
(b) AUTOMATIC REASSESSMENT OF ELIGIBILITY FOR TITLE XXI AND MEDICAID
BENEFITS FOR CHILDREN LOSING MEDICAID OR TITLE XXI ELIGIBILITY-
(1) LOSS OF MEDICAID ELIGIBILITY- Section 1902(a) of the Social Security
Act (42 U.S.C. 1396a(a)) is amended--
(A) by striking the period at the end of paragraph (65) and inserting
`; and', and
(B) by inserting after paragraph (65) the following new
paragraph:
`(66) provide, by not later than the first day of the first month that
begins more than 1 year after the date of the enactment of this paragraph
and in the case of a State with a State child health plan under title XXI,
that before medical assistance to a child (or a parent of a child) is
discontinued under this title, a determination of whether the child (or
parent) is eligible for benefits under title XXI shall be made and, if
determined to be so eligible, the child (or parent) shall be automatically
enrolled in the program under such title without the need for a new
application and without being asked to provide any information that is
already available to the State.'.
(2) LOSS OF TITLE XXI ELIGIBILITY- Section 2102(b)(3) (42 U.S.C.
1397bb(b)(3)) is amended by redesignating subparagraphs (D) and (E) as
subparagraphs (E) and (F), respectively, and by inserting after subparagraph
(C) the following new subparagraph:
`(D) that before health assistance to a child (or a parent of a child)
is discontinued under this title, a determination of whether the child (or
parent) is eligible for benefits under title XIX is made and, if
determined to be so eligible, the child (or parent) is automatically
enrolled in the program under such title without the need for a new
application and without being asked to provide any information that is
already available to the State;'.
(3) EFFECTIVE DATE- The amendments made by paragraphs (1) and (2) apply
to individuals who
lose eligibility under the medicaid program under title XIX, or under a State
child health insurance plan under title XXI, respectively, of the Social
Security Act (42 U.S.C. 1396 et seq.; 1397aa et seq.) on or after the date that
is 60 days after the date of the enactment of this Act.
SEC. 704. PRESUMPTIVE ELIGIBILITY.
(a) ADDITIONAL ENTITIES QUALIFIED TO DETERMINE PRESUMPTIVE ELIGIBILITY FOR
LOW-INCOME CHILDREN-
(1) MEDICAID- Section 1920A(b)(3)(A)(i) (42 U.S.C. 1396r-1a(b)(3)(A)(i))
is amended--
(A) by striking `or (II)' and inserting `, (II)'; and
(B) by inserting `eligibility of a child for medical assistance under
the State plan under this title, or eligibility of a child for child
health assistance under the program funded under title XXI, (III) is an
elementary school or secondary school, as such terms are defined in
section 14101 of the Elementary and Secondary Education Act of 1965 (20
U.S.C. 8801), an elementary or secondary school operated or supported by
the Bureau of Indian Affairs, a State child support enforcement agency, a
child care resource and referral agency, an organization that is providing
emergency food and shelter under a grant under the Stewart B. McKinney
Homeless Assistance Act, or a State office or entity involved in
enrollment in the program under this title, under part A of title IV,
under title XXI, or that determines eligibility for any assistance or
benefits provided under any program of public or assisted housing that
receives Federal funds, including the program under section 8 or any other
section of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.),
or (IV) any other entity the State so deems, as approved by the Secretary'
before the semicolon.
(2) APPLICATION UNDER SCHIP-
(A) IN GENERAL- Section 2107(e)(1) (42 U.S.C. 1397gg(e)(1)) is amended
by adding at the end the following new subparagraph:
`(D) Section 1920A (relating to presumptive eligibility).'.
(B) EXCEPTION FROM LIMITATION ON ADMINISTRATIVE EXPENSES- Section
2105(c)(2) (42 U.S.C. 1397ee(c)(2)) is amended by adding at the end the
following new subparagraph:
`(C) EXCEPTION FOR PRESUMPTIVE ELIGIBILITY EXPENDITURES- The
limitation under subparagraph (A) on expenditures shall not apply to
expenditures attributable to the application of section 1920A (pursuant to
section 2107(e)(1)(D)), regardless of whether the child is determined to
be ineligible for the program under this title or title XIX.'.
(3) TECHNICAL AMENDMENTS- Section 1920A (42 U.S.C. 1396r-1a) is
amended--
(A) in subsection (b)(3)(A)(ii), by striking `paragraph (1)(A)' and
inserting `paragraph (2)(A)'; and
(B) in subsection (c)(2), in the matter preceding subparagraph (A), by
striking `subsection (b)(1)(A)' and inserting `subsection
(b)(2)(A)'.
(b) ELIMINATION OF SCHIP FUNDING OFFSET FOR EXERCISE OF PRESUMPTIVE
ELIGIBILITY OPTION-
(1) IN GENERAL- Section 2104(d) (42 U.S.C. 1397dd(d)) is amended by
striking `the sum of--' and all that follows through `(2)' and conforming
the margins of all that remains accordingly.
(2) EFFECTIVE DATE- The amendment made by paragraph (1) takes effect
October 1, 2000, and applies to allotments under title XXI of the Social
Security Act (42 U.S.C. 1397aa et seq.) for fiscal year 2001 and each
succeeding fiscal year thereafter.
SEC. 705. IMPROVEMENTS TO THE MATERNAL AND CHILD HEALTH SERVICES BLOCK
GRANT.
(a) INCREASE IN AUTHORIZATION OF APPROPRIATIONS- Section 501(a) (42 U.S.C.
701(a)) is amended in the matter preceding paragraph (1) by striking
`$705,000,000 for fiscal year 1994' and inserting `$1,000,000,000 for fiscal
year 2001'.
(b) COORDINATION WITH MEDICAID AND SCHIP-
(1) SCHIP- Section 505(a)(5)(F) (42 U.S.C. 705(a)(5)(F)) is
amended--
(A) in clause (ii), by inserting `and in the coordination of the
administration of the State program under title XXI with the care and
services available under this title, as required under subsections
(b)(3)(G) and (c)(2) of section 2102' before the comma; and
(B) in clause (iv), by striking `and infants who are eligible for
medical assistance under subparagraph (A) or (B) of section 1902(l)(1)'
and inserting `, infants, and children who are eligible for medical
assistance under section 1902(l)(1), and children who are eligible for
child health assistance under the State program under title XXI'.
(2) CONFORMING AMENDMENTS TO SCHIP- Section 2102(b)(3) (42 U.S.C.
1397bb(b)(3)), as amended by section 703(b)(2), is amended--
(A) by striking `and' at the end of subparagraph (E);
(B) by striking the period at the end of subparagraph (F) and
inserting `; and'; and
(C) by adding at the end the following new subparagraph:
`(G) that operations and activities under this title are developed and
implemented in consultation and coordination with the program operated by
the State under title V with respect to outreach and enrollment, benefits
and services, service delivery standards, public health and social service
agency relationships, and quality assurance and data reporting.'.
(c) EFFECTIVE DATE- The amendments made by this section take effect on
October 1, 2000.
SEC. 706. IMPROVING ACCESS TO MEDICARE COST-SHARING ASSISTANCE FOR
LOW-INCOME BENEFICIARIES.
(a) INCREASE IN SLMB ELIGIBILITY-
(1) IN GENERAL- Section 1902(a)(10)(E) (42 U.S.C. 1396a(a)(10)(E)) is
amended--
(A) in clause (iii), by striking `and 120 percent in 1995' and
inserting `, 120 percent in 1995 through 2000, and 135 percent in 2001';
and
(B) in clause (iv), by striking `2002)--' and all that follows through
`(II) for' and inserting `2002) for'.
(2) CONFORMING AMENDMENT- Section 1933(c)(2)(A) (42 U.S.C.
1396u-3(c)(2)(A)) is amended by striking `sum of--' and all that follows
through `(ii) the'.
(3) EFFECTIVE DATE- The amendments made by this subsection take effect
on January 1, 2001, and with respect to the amendment made by paragraph (2),
applies to allocations determined under section 1933(c) of the Social
Security Act (42 U.S.C. 1396u-3(c)) for the last 3 quarters of fiscal year
2001 and all of fiscal year 2002.
(b) INDEX OF ASSETS TEST TO INFLATION- Section 1905(p)(1)(C) (42 U.S.C.
1396d(p)(1)(C)) is amended by inserting `, increased (beginning with 2001 and
each year thereafter) by the percentage increase (if any) in the Consumer
Price Index for All Urban Consumers (United States city average)' before the
period.
(c) INCREASED EFFORT TO PROVIDE MEDICARE BENEFICIARIES WITH MEDICARE
COST-SHARING UNDER THE MEDICAID PROGRAM-
(1) IN GENERAL- Section 1902(a) (42 U.S.C. 1396a(a)), as amended by
section 703(b)(1)(A), is amended--
(A) in paragraph (65), by striking `and' at the end;
(B) in paragraph (66), by striking the period and inserting `; and';
and
(C) by inserting after paragraph (66) the following new
paragraph:
`(67) provide for the determination of eligibility for medicare
cost-sharing (as defined in section 1905(p)(3)) for individuals described in
paragraph (10)(E) and, if eligible for such medicare cost-sharing, for the
enrollment of such individuals at any hospital, clinic, or similar entity at
which State or local agency personnel are stationed for the purpose of
determining the eligibility of individuals for medical assistance under the
State plan or providing outreach services to eligible or potentially
eligible individuals.'.
(2) EFFECTIVE DATE- The amendments made by this paragraph shall take
effect on the date of enactment of this Act.
(d) PRESUMPTIVE ELIGIBILITY OF CERTAIN LOW-INCOME INDIVIDUALS FOR MEDICARE
COST-SHARING UNDER THE QMB OR SLMB PROGRAM- Title XIX (42 U.S.C. 1396 et seq.)
is amended by inserting after section 1920A the following new section:
`PRESUMPTIVE ELIGIBILITY OF CERTAIN LOW-INCOME INDIVIDUALS
`SEC. 1920B. (a) A State plan approved under section 1902 shall provide
for making medical assistance with respect to medicare cost-sharing covered
under the State plan available to a low-income individual on the date the
low-income individual becomes entitled to benefits under part A of title XVIII
during a presumptive eligibility period.
`(b) For purposes of this section:
`(1) The term `low-income individual' means an individual who at the age
of 65 years is described--
`(A) in section 1902(a)(10)(E)(i), or
`(B) in section 1902(a)(10)(E)(iii).
`(2) The term `medicare cost-sharing'--
`(A) with respect to an individual described in paragraph (1)(A), has
the meaning given such term in section 1905(p)(3); and
`(B) with respect to an individual described in paragraph (1)(B), has
the meaning given such term in section 1905(p)(3)(A).
`(3) The term `presumptive eligibility period' means, with respect to a
low-income individual, the period that--
`(A) begins with the date on which a qualified entity determines, on
the basis of preliminary information, that the income and resources of the
individual do not exceed the applicable income and resource level of
eligibility under the State plan, and
`(B) ends with (and includes) the earlier of--
`(i) the day on which a determination is made with respect to the
eligibility of the low-income individual for medical assistance for
medical cost-sharing under the State plan, or
`(ii) in the case of a low-income individual on whose behalf an
application is not filed by the last day of the month following the
month during which the entity makes the determination referred to in
subparagraph (A), such last day.
`(4)(A) Subject to subparagraph (B), the term `qualified entity' means
any of the following:
`(i) Qualified individuals within the Social Security
Administration.
`(ii) An entity determined by the State agency to be capable of making
determinations of the type described in paragraph (3).
`(B) The Secretary may issue regulations further limiting those entities
that may become qualified entities in order to prevent fraud and abuse and
for other reasons.
`(c)(1) The State agency, after consultation with the Secretary, shall
provide qualified entities with--
`(A) such forms as are necessary for an application to be made on behalf
of a low-income individual for medical assistance for medical cost-sharing
under the State plan, and
`(B) information on how to assist low-income individuals and other
persons in completing and filing such forms.
`(2) A qualified entity that determines under subsection (b)(2)(A) that a
low-income individual is presumptively eligible for medical assistance for
medical cost-sharing under a State plan shall--
`(A) notify the State agency of the determination within 5 working days
after the date on which the determination is made, and
`(B) inform the low-income individual at the time the determination is
made that an application for medical assistance for medical cost-sharing
under the State plan is required to be made by not later than the last day
of the month following the month during which the determination is
made.
`(3) In the case of a low-income individual who is determined by a
qualified entity to be presumptively eligible for medical assistance for
medical cost-sharing under a State plan, the low-income individual shall make
application for medical assistance for medical cost-sharing under such plan by
not later than the last day of the month following the month during which the
determination is made.
`(d) Notwithstanding any other provision of this title, medical assistance
for medicare cost-sharing that--
`(1) is furnished to a low-income individual during a presumptive
eligibility period under the State plan; and
`(2) is included in the services covered by a State plan;
shall be treated as medical assistance provided by such plan for purposes
of section 1903.'.
SEC. 707. BREAST AND CERVICAL CANCER PREVENTION AND TREATMENT.
(a) COVERAGE AS OPTIONAL CATEGORICALLY NEEDY GROUP-
(1) IN GENERAL- Section 1902(a)(10)(A)(ii) (42 U.S.C.
1396a(a)(10)(A)(ii)) is amended--
(A) in subclause (XVI), by striking `or' at the end;
(B) in subclause (XVII), by adding `or' at the end; and
(C) by adding at the end the following:
`(XVIII) who are described in subsection (aa) (relating to certain
breast or cervical cancer patients);'.
(2) GROUP DESCRIBED- Section 1902 (42 U.S.C. 1396a) is amended by adding
at the end the following:
`(aa) Individuals described in this subsection are individuals who--
`(1) are not described in subsection (a)(10)(A)(i);
`(2) have not attained age 65;
`(3) have been screened for breast and cervical cancer under the Centers
for Disease Control and Prevention breast and cervical cancer early
detection program established under title XV of the Public Health Service
Act (42 U.S.C. 300k et seq.) in accordance with the requirements of section
1504 of that Act (42 U.S.C. 300n) and need treatment for breast or cervical
cancer; and
`(4) are not otherwise covered under creditable coverage, as defined in
section 2701(c) of the Public Health Service Act (42 U.S.C.
300gg(c)).'.
(3) LIMITATION ON BENEFITS- Section 1902(a)(10) (42 U.S.C. 1396a(a)(10))
is amended in the matter following subparagraph (G)--
(A) by striking `and (XIII)' and inserting `(XIII)'; and
(B) by inserting `, and (XIV) the medical assistance made available to
an individual described in subsection (aa) who is eligible for medical
assistance only because of subparagraph (A)(10)(ii)(XVIII) shall be
limited to medical assistance provided during the period in which such an
individual requires treatment for breast or cervical cancer' before the
semicolon.
(4) CONFORMING AMENDMENTS- Section 1905(a) (42 U.S.C. 1396d(a)) is
amended in the matter preceding paragraph (1)--
(A) in clause (xi), by striking `or' at the end;
(B) in clause (xii), by adding `or' at the end; and
(C) by inserting after clause (xii) the following:
`(xiii) individuals described in section 1902(aa),'.
(b) PRESUMPTIVE ELIGIBILITY-
(1) IN GENERAL- Title XIX (42 U.S.C. 1396 et seq.) is amended by
inserting after section 1920A the following:
`PRESUMPTIVE ELIGIBILITY FOR CERTAIN BREAST OR CERVICAL CANCER PATIENTS
`SEC. 1920B. (a) STATE OPTION- A State plan approved under section 1902
may provide for making medical assistance available to an individual described
in section 1902(aa) (relating to certain breast or cervical cancer patients)
during a presumptive eligibility period.
`(b) DEFINITIONS- For purposes of this section:
`(1) PRESUMPTIVE ELIGIBILITY PERIOD- The term `presumptive eligibility
period' means, with respect to an individual described in subsection (a),
the period that--
`(A) begins with the date on which a qualified entity determines, on
the basis of preliminary information, that the individual is described in
section 1902(aa); and
`(B) ends with (and includes) the earlier of--
`(i) the day on which a determination is made with respect to the
eligibility of such individual for services under the State plan;
or
`(ii) in the case of such an individual who does not file an
application by the last day of the month following the month during
which the entity makes the determination referred to in subparagraph
(A), such last day.
`(A) IN GENERAL- Subject to subparagraph (B), the term `qualified
entity' means any entity that--
`(i) is eligible for payments under a State plan approved under this
title; and
`(ii) is determined by the State agency to be capable of making
determinations of the type described in paragraph (1)(A).
`(B) REGULATIONS- The Secretary may issue regulations further limiting
those entities that may become qualified entities in order to prevent
fraud and abuse and for other reasons.
`(C) RULE OF CONSTRUCTION- Nothing in this paragraph shall be
construed as preventing a State from limiting the classes of entities that
may become qualified entities, consistent with any limitations imposed
under subparagraph (B).
`(1) IN GENERAL- The State agency shall provide qualified entities
with--
`(A) such forms as are necessary for an application to be made by an
individual described in subsection (a) for medical assistance under the
State plan; and
`(B) information on how to assist such individuals in completing and
filing such forms.
`(2) NOTIFICATION REQUIREMENTS- A qualified entity that determines under
subsection (b)(1)(A) that an individual described in subsection (a) is
presumptively eligible for medical assistance under a State plan
shall--
`(A) notify the State agency of the determination within 5 working
days after the date on which the determination is made; and
`(B) inform such individual at the time the determination is made that
an application for medical assistance under the State plan is required to
be made by not later than the last day of the month following the month
during which the determination is made.
`(3) APPLICATION FOR MEDICAL ASSISTANCE- In the case of an individual
described in subsection (a) who is determined by a qualified entity to be
presumptively eligible for medical assistance under a State plan, the
individual shall apply for medical assistance under such plan by not later
than the last day of the month following the month during which the
determination is made.
`(d) PAYMENT- Notwithstanding any other provision of this title, medical
assistance that--
`(1) is furnished to an individual described in subsection (a)--
`(A) during a presumptive eligibility period; and
`(B) by a entity that is eligible for payments under the State plan;
and
`(2) is included in the care and services covered by the State
plan,
shall be treated as medical assistance provided by such plan for purposes
of clause (4) of the first sentence of section 1905(b).'.
(2) CONFORMING AMENDMENTS-
(A) Section 1902(a)(47) (42 U.S.C. 1396a(a)(47)) is amended by
inserting before the semicolon at the end the following: `and provide for
making medical assistance available to individuals described in subsection
(a) of section 1920B during a presumptive eligibility period in accordance
with such section'.
(B) Section 1903(u)(1)(D)(v) (42 U.S.C. 1396b(u)(1)(D)(v)) is
amended--
(i) by striking `or for' and inserting `, for'; and
(ii) by inserting before the period the following: `, or for medical
assistance provided to an individual described in subsection (a) of
section 1920B during a presumptive eligibility period under such
section'.
(c) ENHANCED MATCH- The first sentence of section 1905(b) (42 U.S.C.
1396d(b)) is amended--
(1) by striking `and' before `(3)'; and
(2) by inserting before the period at the end the following: `, and (4)
the Federal medical assistance percentage shall be equal to the enhanced
FMAP described in section 2105(b) with respect to medical assistance
provided to individuals who are eligible for such assistance only on the
basis of section 1902(a)(10)(A)(ii)(XVIII)'.
(d) EFFECTIVE DATE- The amendments made by this section apply to medical
assistance for items and services furnished on or after October 1, 2000,
without regard to whether final regulations to carry out such amendments have
been promulgated by such date.
SEC. 708. MEDICAID COVERAGE OF SERVICES FURNISHED BY CERTIFIED NURSE
PRACTITIONERS AND CLINICAL NURSE SPECIALISTS.
(a) IN GENERAL- Section 1905(a)(21) (42 U.S.C. 1396d(a)(21)) is amended to
read as follows:
`(21) services furnished by a certified nurse practitioner (as defined
by the Secretary) or a clinical nurse specialist (as defined in subsection
(x) which the certified nurse practitioner or clinical nurse specialist is
legally authorized to perform under State law (or the State regulatory
mechanism provided by State law), whether or not the certified nurse
practitioner or clinical nurse specialist is under the supervision of, or
associated with, a physician or other health care provider;'.
(b) DEFINITION OF CLINICAL NURSE SPECIALIST- Section 1905 of such Act (42
U.S.C. 1396d) is amended by adding at the end the following new subsection:
`(x) The term `clinical nurse specialist' means an individual who has
earned a master's degree in a clinical area of nursing from an accredited
institution and who is a registered nurse licensed to practice nursing in the
State in which the individual furnishes services.'.
(c) EFFECTIVE DATE- The amendments made by subsections (a) and (b) apply
to calendar quarters beginning on or after October 1, 2000, without regard to
whether or not final regulations to carry out such amendments have been
promulgated by such date.
TITLE VIII--OTHER PROVISIONS
SEC. 801. APPROPRIATIONS FOR RICKY RAY HEMOPHILIA RELIEF FUND.
Section 101(e) of the Ricky Ray Hemophilia Relief Fund Act of 1998 (42
U.S.C. 300c-22 note) is amended by adding at the end the following: `There is
appropriated
to the Fund $475,000,000 for fiscal year 2001, to remain available until
expended.'.
SEC. 802. INCREASE IN APPROPRIATIONS FOR SPECIAL DIABETES PROGRAMS FOR
CHILDREN WITH TYPE I DIABETES AND INDIANS.
(a) SPECIAL DIABETES PROGRAMS FOR CHILDREN WITH TYPE I DIABETES- Section
330B(b) of the Public Health Service Act (42 U.S.C. 254c-2(b)) is amended--
(1) by striking `Notwithstanding' and inserting the following:
`(1) TRANSFERRED FUNDS- Notwithstanding'; and
(2) by adding at the end the following:
`(2) APPROPRIATIONS- For the purpose of making grants under this
section, there are appropriated, out of any money in the Treasury not
otherwise appropriated--
`(A) $70,000,000 for each of fiscal years 2001 and 2002 (which shall
be combined with amounts transferred under paragraph (1) for each such
fiscal years); and
`(B) $100,000,000 for each of fiscal years 2003 through
2005.'.
(b) SPECIAL DIABETES PROGRAMS FOR INDIANS- Section 330C(c) of the Public
Health Service Act (42 U.S.C. 254c-3(c)) is amended--
(1) by striking `Notwithstanding' and inserting the following:
`(1) TRANSFERRED FUNDS- Notwithstanding';
(2) by adding at the end the following:
`(2) APPROPRIATIONS- For the purpose of making grants under this
section, there are appropriated, out of any money in the Treasury not
otherwise appropriated--
`(A) $70,000,000 for each of fiscal years 2001 and 2002 (which shall
be combined with amounts transferred under paragraph (1) for each such
fiscal years); and
`(B) $100,000,000 for each of fiscal years 2003 through
2005.'.
SEC. 803. DEMONSTRATION GRANTS TO IMPROVE OUTREACH, ENROLLMENT, AND
COORDINATION OF PROGRAMS AND SERVICES TO HOMELESS INDIVIDUALS AND FAMILIES.
(a) AUTHORITY- The Secretary of Health and Human Services may award
demonstration grants to not more than 7 States (or other qualified entities)
to conduct innovative programs that are designed to improve outreach to
homeless individuals and families under the programs described in subsection
(b) with respect to enrollment of such individuals and families under such
programs and the provision of services (and coordinating the provision of such
services) under such programs.
(b) PROGRAMS FOR HOMELESS DESCRIBED- The programs described in this
subsection are as follows:
(1) MEDICAID- The program under title XIX of the Social Security Act (42
U.S.C. 1396 et seq.).
(2) SCHIP- The program under title XXI of such Act (42 U.S.C. 1397aa et
seq.).
(3) TANF- The program under part of A of title IV of such Act (42 U.S.C.
601 et seq.).
(4) MATERNAL AND CHILD HEALTH BLOCK GRANTS- The program under title V of
the Social Security Act (42 U.S.C. 701 et seq.).
(5) MENTAL HEALTH AND SUBSTANCE ABUSE BLOCK GRANTS- The program under
part B of title XIX of the Public Health Service Act (42 U.S.C. 300x-1 et
seq.).
(6) HIV/AIDS CARE GRANTS- The program under part B of title XXVI of the
Public Health Service Act (42 U.S.C. 300ff-21 et seq.).
(7) FOOD STAMP PROGRAM- The program under the Food Stamp Act of 1977 (7
U.S.C. 2011 et seq.).
(8) WORKFORCE INVESTMENT ACT- The program under the Workforce Investment
Act of 1999 (29 U.S.C. 2801 et seq.).
(9) WELFARE-TO-WORK- The welfare-to-work program under section 403(a)(5)
of the Social Security Act (42 U.S.C. 603(a)(5)).
(10) OTHER PROGRAMS- Other public and private benefit programs that
serve low-income individuals.
(c) APPROPRIATIONS- For the purposes of carrying out this section, there
are appropriated, out of any funds in the Treasury not otherwise appropriated,
$10,000,000, to remain available until expended.
SEC. 804. PROTECTION OF AN HMO ENROLLEE TO RECEIVE CONTINUING CARE AT A
FACILITY SELECTED BY THE ENROLLEE.
(a) AMENDMENTS TO THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974-
(1) IN GENERAL- Subpart B of part 7 of subtitle B of title I of the
Employee Retirement Income Security Act of 1974 (29 U.S.C. 1185 et seq.) is
amended by adding at the end the following new section:
`SEC. 714. ENSURING CHOICE FOR CONTINUING CARE.
`(a) IN GENERAL- With respect to health insurance coverage provided to
participants or beneficiaries through a managed care organization under a
group health plan, or through a health insurance issuer providing health
insurance coverage in connection with a group health plan, such plan or issuer
may not deny coverage for services provided to such participant or beneficiary
by a continuing care retirement community, skilled nursing facility, or other
qualified facility in which the participant or beneficiary resided prior to a
hospitalization, regardless of whether such organization is under contract
with such community or facility if the requirements described in subsection
(b) are met.
`(b) REQUIREMENTS- The requirements of this subsection are that--
`(1) the service involved is a service for which the managed care
organization involved would be required to provide or pay for under its
contract with the participant or beneficiary if the continuing care
retirement community, skilled nursing facility, or other qualified facility
were under contract with the organization;
`(2) the participant or beneficiary involved--
`(A) resided in the continuing care retirement community, skilled
nursing facility, or other qualified facility prior to being
hospitalized;
`(B) had a contractual or other right to return to the facility after
hospitalization; and
`(C) elects to return to the facility after hospitalization, whether
or not the residence of the participant or beneficiary after returning
from the hospital is the same part of the facility in which the
beneficiary resided prior to hospitalization;
`(3) the continuing care retirement community, skilled nursing facility,
or other qualified facility has the capacity to provide the services the
participant or beneficiary needs; and
`(4) the continuing care retirement community, skilled nursing facility,
or other qualified facility is willing to accept substantially similar
payment under the same terms and conditions that apply to similarly situated
health care facility providers under contract with the organization
involved.
`(c) SERVICES TO PREVENT HOSPITALIZATION- A group health plan or health
insurance issuer to which this section applies may not deny payment for a
skilled nursing service provided to a participant or beneficiary by a
continuing care retirement community, skilled nursing facility, or other
qualified facility in which the participant or beneficiary resides, without a
preceding hospital stay, regardless of whether the organization is under
contract with such community or facility, if--
`(1) the plan or issuer has determined that the service is necessary to
prevent the hospitalization of the participant or beneficiary; and
`(2) the service to prevent hospitalization is provided as an additional
benefit as described in section 417.594 of title 42, Code of Federal
Regulations, and would otherwise be covered as provided for in subsection
(b)(1).
`(d) RIGHTS OF SPOUSES- A group health plan or health insurance issuer to
which this section applies shall not deny payment for services provided by a
skilled nursing facility for the care of a participant or beneficiary,
regardless of whether the plan or issuer is under contract with such facility,
if the spouse of the participant or beneficiary is already a resident of such
facility and the requirements described in subsection (b) are met.
`(e) EXCEPTIONS- Subsection (a) shall not apply--
`(1) where the attending acute care provider and the participant or
beneficiary (or a designated representative of the participant or
beneficiary where the participant or beneficiary is physically or mentally
incapable of making an election under this paragraph) do not elect to pursue
a course of treatment necessitating continuing care; or
`(2) unless the community or facility involved--
`(A) meets all applicable licensing and certification requirements of
the State in which it is located; and
`(B) agrees to reimbursement for the care of the participant or
beneficiary at a rate similar to the rate negotiated by the managed care
organization with similar providers of care for similar services.
`(f) PROHIBITIONS- A group health plan and a health insurance issuer
providing health insurance coverage in connection with a group health plan may
not--
`(1) deny to an individual eligibility, or continued eligibility, to
enroll or to renew coverage with a managed care organization under the plan,
solely for the purpose of avoiding the requirements of this section;
`(2) provide monetary payments or rebates to enrollees to encourage such
enrollees to accept less than the minimum protections available under this
section;
`(3) penalize or otherwise reduce or limit the reimbursement of an
attending physician because such physician provided care to a participant or
beneficiary in accordance with this section; or
`(4) provide incentives (monetary or otherwise) to an attending
physician to induce such physician to provide care to a participant or
beneficiary in a manner inconsistent with this section.
`(g) RULES OF CONSTRUCTION-
`(1) HMO NOT OFFERING BENEFITS- This section shall not apply with
respect to any managed care organization under a group health plan, or
through a health insurance issuer providing health insurance coverage in
connection with a group health plan, that does not provide benefits for
stays in a continuing care retirement community, skilled nursing facility,
or other qualified facility.
`(2) COST-SHARING- Nothing in this section shall be construed as
preventing a managed care organization under a group health plan, or through
a health insurance issuer providing health insurance coverage in connection
with a group health plan, from imposing deductibles, coinsurance, or other
cost-sharing in relation to benefits for care in a continuing care
facility.
`(h) PREEMPTION; EXCEPTION FOR HEALTH INSURANCE COVERAGE IN CERTAIN
STATES-
`(1) IN GENERAL- The requirements of this section shall not apply with
respect to health insurance coverage to the extent that a State law (as
defined in section 2723(d)(1) of the Public Health Service Act) applies to
such coverage and is described in any of the following subparagraphs:
`(A) Such State law requires such coverage to provide for referral to
a continuing care retirement community, skilled nursing facility, or other
qualified facility in a manner that is more protective of participants or
beneficiaries than the provisions of this section.
`(B) Such State law expands the range of services or facilities
covered under this section and is otherwise more protective of the rights
of participants or beneficiaries than the provisions of this
section.
`(2) CONSTRUCTION- Section 731(a)(1) shall not be construed to provide
that any requirement of
this section applies with respect to health insurance coverage, to the extent
that a State law described in paragraph (1) applies to such coverage.
`(i) PENALTIES- A participant or beneficiary may enforce the provisions of
this section in an appropriate Federal district court. An action for
injunctive relief or damages may be commenced on behalf of the participant or
beneficiary by the participant's or beneficiary's legal representative. The
court may award reasonable attorneys' fees to the prevailing party. If a
beneficiary dies before conclusion of an action under this section, the action
may be maintained by a representative of the participant's or beneficiary's
estate.
`(j) DEFINITIONS- In this section:
`(1) ATTENDING ACUTE CARE PROVIDER- The term `attending acute care
provider' means anyone licensed or certified under State law to provide
health care services who is operating within the scope of such license and
who is primarily responsible for the care of the enrollee.
`(2) CONTINUING CARE RETIREMENT COMMUNITY- The term `continuing care
retirement community' means an organization that provides or arranges for
the provision of housing and health-related services to an older person
under an agreement effective for the life of the person or for a specified
period greater than 1 year.
`(3) MANAGED CARE ORGANIZATION- The term `managed care organization'
means an organization that provides comprehensive health services to
participants or beneficiaries, directly or under contract or other
agreement, on a prepayment basis to such individuals. For purposes of this
section, the following shall be considered as managed care
organizations:
`(A) A Medicare+Choice plan authorized under section 1851(a) of the
Social Security Act (42 U.S.C. 1395w-21(a)).
`(B) Any other entity that manages the cost, utilization, and delivery
of health care through the use of predetermined periodic payments to
health care providers employed by or under contract or other agreement,
directly or indirectly, with the entity.
`(4) OTHER QUALIFIED FACILITY- The term `other qualified facility' means
any facility that can provide the services required by the participant or
beneficiary consistent with State and Federal law.
`(5) SKILLED NURSING FACILITY- The term `skilled nursing facility' means
a facility that meets the requirements of section 1819 of the Social
Security Act (42 U.S.C. 1395i-3).'.
(2) CLERICAL AMENDMENT- The table of contents in section 1 of the
Employee Retirement Income Security Act of 1974 is amended by inserting
after the items relating to subpart B of part 7 of subtitle B of title I the
following new item:
`Sec. 714. Ensuring choice for continuing care.'.
(3) EFFECTIVE DATE- The amendments made by this section shall apply with
respect to plan years beginning on or after January 1, 2001.
(b) AMENDMENT TO THE PUBLIC HEALTH SERVICE ACT RELATING TO THE GROUP
MARKET-
(1) IN GENERAL- Subpart 2 of part A of title XXVII of the Public Health
Service Act (42 U.S.C. 300gg-4 et seq.) is amended by adding at the end the
following new section:
`SEC. 2707. ENSURING CHOICE FOR CONTINUING CARE.
`(a) IN GENERAL- With respect to health insurance coverage provided to
enrollees through a managed care organization under a group health plan, or
through a health insurance issuer providing health insurance coverage in
connection with a group health plan, such plan or issuer may not deny coverage
for services provided to such enrollee by a continuing care retirement
community, skilled nursing facility, or other qualified facility in which the
enrollee resided prior to a hospitalization, regardless of whether such
organization is under contract with such community or facility if the
requirements described in subsection (b) are met.
`(b) REQUIREMENTS- The requirements of this subsection are that--
`(1) the service involved is a service for which the managed care
organization involved would be required to provide or pay for under its
contract with the enrollee if the continuing care retirement community,
skilled nursing facility, or other qualified facility were under contract
with the organization;
`(2) the enrollee involved--
`(A) resided in the continuing care retirement community, skilled
nursing facility, or other qualified facility prior to being
hospitalized;
`(B) had a contractual or other right to return to the facility after
hospitalization; and
`(C) elects to return to the facility after hospitalization, whether
or not the residence of the enrollee after returning from the hospital is
the same part of the facility in which the beneficiary resided prior to
hospitalization;
`(3) the continuing care retirement community, skilled nursing facility,
or other qualified facility has the capacity to provide the services the
enrollee needs; and
`(4) the continuing care retirement community, skilled nursing facility,
or other qualified facility is willing to accept substantially similar
payment under the same terms and conditions that apply to similarly situated
health care facility providers under contract with the organization
involved.
`(c) SERVICES TO PREVENT HOSPITALIZATION- A group health plan or health
insurance issuer to which this section applies may not deny payment for a
skilled nursing service provided to an enrollee by a continuing care
retirement community, skilled nursing facility, or other qualified facility in
which the enrollee resides, without a preceding hospital stay, regardless of
whether the plan or issuer is under contract with such community or facility,
if--
`(1) the plan or issuer has determined that the service is necessary to
prevent the hospitalization of the enrollee; and
`(2) the service to prevent hospitalization is provided as an additional
benefit as described in section 417.594 of title 42, Code of Federal
Regulations, and would be covered as provided for in subsection
(b)(1).
`(d) RIGHTS OF SPOUSES- A group health plan or health insurance issuer to
which this section applies shall not deny payment for services provided by a
skilled nursing facility for the care of an enrollee, regardless of whether
the plan or issuer is under contract with such facility, if the spouse of the
enrollee is already a resident of such facility and the requirements described
in subsection (b) are met.
`(e) EXCEPTIONS- Subsection (a) shall not apply--
`(1) where the attending acute care provider and the enrollee (or a
designated representative of the enrollee where the enrollee is physically
or mentally incapable of making an election under this paragraph) do not
elect to pursue a course of treatment necessitating continuing care;
or
`(2) unless the community or facility involved--
`(A) meets all applicable licensing and certification requirements of
the State in which it is located; and
`(B) agrees to reimbursement for the care of the enrollee at a rate
similar to the rate negotiated by the managed care organization with
similar providers of care for similar services.
`(f) PROHIBITIONS- A group health plan and a health insurance issuer
providing health insurance coverage in connection with a group health plan may
not--
`(1) deny to an individual eligibility, or continued eligibility, to
enroll or to renew coverage with a managed care organization under the plan,
solely for the purpose of avoiding the requirements of this section;
`(2) provide monetary payments or rebates to enrollees to encourage such
enrollees to accept less than the minimum protections available under this
section;
`(3) penalize or otherwise reduce or limit the reimbursement of an
attending physician because such physician provided care to an enrollee in
accordance with this section; or
`(4) provide incentives (monetary or otherwise) to an attending
physician to induce such physician to provide care to an enrollee in a
manner inconsistent with this section.
`(g) RULES OF CONSTRUCTION-
`(1) HMO NOT OFFERING BENEFITS- This section shall not apply with
respect to any managed care organization under a group health plan, or
through a health insurance issuer providing health insurance coverage in
connection with a group health plan, that does not provide benefits for
stays in a continuing care retirement community, skilled nursing facility,
or other qualified facility.
`(2) COST-SHARING- Nothing in this section shall be construed as
preventing a managed care organization under a group health plan, or through
a health insurance issuer providing health insurance coverage in connection
with a group health plan, from imposing deductibles, coinsurance, or other
cost-sharing in relation to benefits for care in a continuing care
facility.
`(h) PREEMPTION; EXCEPTION FOR HEALTH INSURANCE COVERAGE IN CERTAIN
STATES-
`(1) IN GENERAL- The requirements of this section shall not apply with
respect to health insurance coverage to the extent that a State law (as
defined in section 2723(d)(1)) applies to such coverage and is described in
any of the following subparagraphs:
`(A) Such State law requires such coverage to provide for referral to
a continuing care retirement community, skilled nursing facility, or other
qualified facility in a manner
that is more protective of the enrollee than the provisions of this section.
`(B) Such State law expands the range of services or facilities
covered under this section and is otherwise more protective of enrollee
rights than the provisions of this section.
`(2) CONSTRUCTION- Section 2723(a)(1) shall not be construed to provide
that any requirement of this section applies with respect to health
insurance coverage, to the extent that a State law described in paragraph
(1) applies to such coverage.
`(i) PENALTIES- An enrollee may enforce the provisions of this section in
an appropriate Federal district court. An action for injunctive relief or
damages may be commenced on behalf of the enrollee by the enrollee's legal
representative. The court may award reasonable attorneys' fees to the
prevailing party. If a beneficiary dies before conclusion of an action under
this section, the action may be maintained by a representative of the
enrollee's estate.
`(j) DEFINITIONS- In this section:
`(1) ATTENDING ACUTE CARE PROVIDER- The term `attending acute care
provider' means anyone licensed or certified under State law to provide
health care services who is operating within the scope of such license and
who is primarily responsible for the care of the enrollee.
`(2) CONTINUING CARE RETIREMENT COMMUNITY- The term `continuing care
retirement community' means an organization that provides or arranges for
the provision of housing and health-related services to an older person
under an agreement effective for the life of the person or for a specified
period greater than 1 year.
`(3) MANAGED CARE ORGANIZATION- The term `managed care organization'
means an organization that provides comprehensive health services to
enrollees, directly or under contract or other agreement, on a prepayment
basis to such individuals. For purposes of this section, the following shall
be considered as managed care organizations:
`(A) A Medicare+Choice plan authorized under section 1851(a) of the
Social Security Act (42 U.S.C. 1395w-21(a)).
`(B) Any other entity that manages the cost, utilization, and delivery
of health care through the use of predetermined periodic payments to
health care providers employed by or under contract or other agreement,
directly or indirectly, with the entity.
`(4) OTHER QUALIFIED FACILITY- The term `other qualified facility' means
any facility that can provide the services required by the enrollee
consistent with State and Federal law.
`(5) SKILLED NURSING FACILITY- The term `skilled nursing facility' means
a facility that meets the requirements of section 1819 of the Social
Security Act (42 U.S.C. 1395i-3).'.
(2) EFFECTIVE DATE- The amendment made by this section shall apply with
respect to group health plans for plan years beginning on or after January
1, 2001.
(c) AMENDMENTS TO THE PUBLIC HEALTH SERVICE ACT RELATING TO THE INDIVIDUAL
MARKET-
(1) IN GENERAL- The first subpart 3 of part B of title XXVII of the
Public Health Service Act (42 U.S.C. 300gg-51 et seq.) (relating to other
requirements) is amended--
(A) by redesignating such subpart as subpart 2; and
(B) by adding at the end the following new section:
`SEC. 2753. ENSURING CHOICE FOR CONTINUING CARE.
`The provisions of section 2707 shall apply to health maintenance
organization coverage offered by a health insurance issuer in the individual
market in the same manner as they apply to such coverage offered by a health
insurance issuer in connection with a group health plan in the small or large
group market.'.
(2) EFFECTIVE DATE- The amendment made by this section shall apply with
respect to health insurance coverage offered, sold, issued, renewed, in
effect, or operated in the individual market on or after January 1,
2001.
SEC. 805. GRANTS TO DEVELOP AND ESTABLISH REAL CHOICE SYSTEMS CHANGE
INITIATIVES.
(1) IN GENERAL- The Secretary of Health and Human Services (in this
section referred to as the `Secretary') shall award grants described in
subsection (b) to States to support real choice systems change initiatives
that establish specific action steps and specific timetables to achieve
enduring system improvements and to provide consumer-responsive long-term
services and supports to eligible individuals in the most integrated setting
appropriate based on the unique strengths and needs of the individual, the
priorities and concerns of the individual (or, as appropriate, the
individual's representative), and the individual's desires with regard to
participation in community life.
(2) ELIGIBILITY- To be eligible for a grant under this section, a State
shall--
(A) establish a Consumer Task Force in accordance with subsection (d);
and
(B) submit an application at such time, in such manner, and containing
such information as the Secretary may determine. The application shall be
jointly developed and signed by the designated State official and the
chairperson of such Task Force, acting on behalf of and at the direction
of the Task Force.
(3) DEFINITION OF STATE- In this section, the term `State' means each of
the 50 States, the District of Columbia, Puerto Rico, Guam, the United
States Virgin Islands, American Samoa, and the Commonwealth of the Northern
Mariana Islands.
(b) GRANTS FOR REAL CHOICE SYSTEMS CHANGE INITIATIVES-
(1) IN GENERAL- From funds appropriated under subsection (f), the
Secretary shall award grants to States to--
(A) support the establishment, implementation, and operation of the
State real choice systems change initiatives described in subsection (a);
and
(B) conduct outreach campaigns regarding the existence of such
initiatives.
(2) DETERMINATION OF AWARDS; STATE ALLOTMENTS- The Secretary shall
develop a formula for the distribution of funds to States for each fiscal
year under subsection (a). Such formula shall give preference to States that
have a higher need for assistance, as determined by the Secretary, based on
indicators such as a relatively higher proportion of long-term services and
supports furnished to individuals in an institutional setting but who have a
plan described in an application submitted under subsection (a)(2).
(c) AUTHORIZED ACTIVITIES- A State that receives a grant under this
section shall use the funds made available through the grant to accomplish the
purposes described in subsection (a) and, in accomplishing such purposes, may
carry out any of the following systems change activities:
(1) NEEDS ASSESSMENT AND DATA GATHERING- The State may use funds to
conduct a statewide needs assessment that may be based on data in existence
on the date on which the assessment is initiated and may include information
about the number of individuals within the State who are receiving long-term
services and supports in unnecessarily segregated settings, the nature and
extent to which current programs respond to the preferences of individuals
with disabilities to receive services in home and community-based settings
as well as in institutional settings, and the expected change in demand for
services provided in home and community settings as well as institutional
settings.
(2) INSTITUTIONAL BIAS: REMEDIES AND PROMOTION OF COMMUNITY
PARTICIPATION- The State may use funds to identify, develop, and implement
strategies for modifying policies, practices, and procedures that
unnecessarily bias the provision of long-term services and supports toward
institutional settings and away from home and community-based settings,
including policies, practices, and procedures governing statewideness,
comparability in amount, duration, and scope of services, financial
eligibility, individualized functional assessments and screenings (including
individual and family involvement), knowledge about service options, and
promotion of self-direction of services and community-integrated living and
service arrangements that facilitate participation in community life to the
fullest extent possible and desired by the individual.
(3) OVER MEDICALIZATION OF SERVICES- The State may use funds to
identify, develop, and implement strategies for modifying policies,
practices, and procedures that unnecessarily bias the provision of long-term
services and supports by health care professionals to the extent that
quality services and supports can be provided by other qualified
individuals, including policies, practices, and procedures governing service
authorization, case management, and service coordination, service delivery
options, quality controls, and supervision and training.
(4) INTERAGENCY COORDINATION; SINGLE POINT OF ENTRY- The State may
support activities to identify and coordinate Federal and State policies,
resources, and services, relating to the provision of long-term services and
supports, including the convening of interagency work groups and the
entering into of interagency agreements that provide for a single point of
entry with one-stop access for long-term support services and the design and
implementation of a coordinated screening and assessment system for all
persons eligible for long-term services and supports.
(5) TRAINING AND TECHNICAL ASSISTANCE- The State may carry out directly,
or may provide support to a public or private entity to carry out training
and technical assistance activities that are provided for individuals with
disabilities, and, as appropriate, their representatives, attendants, and
other personnel (including professionals, paraprofessionals, volunteers, and
other members of the community).
(6) PUBLIC AWARENESS- The State may support a public awareness program
that is designed to provide information relating to the availability of
choices available to individuals with disabilities for receiving long-term
services and support in the most integrated setting appropriate.
(7) TRANSITIONAL COSTS- The State may use funds to provide transitional
costs such as rent and utility deposits, first months's rent and utilities,
bedding, basic kitchen supplies, and other necessities required for an
individual to make the transition from an institutional facility to a
community-based home setting where the individual resides.
(8) TASK FORCE- The State may use funds to support the operation of the
Consumer Task Force established under subsection (d).
(9) DEMONSTRATIONS OF NEW APPROACHES- The State may use funds to
conduct, on a time-limited basis, the demonstration of new approaches to
accomplishing the purposes described in subsection (a)(1).
(10) IMPROVEMENT IN THE QUALITY OF SERVICES AND SUPPORTS- The State may
use funds to improve the quality of services and supports provided to
individuals with disabilities and their families.
(11) OTHER ACTIVITIES- The State may use funds for any systems change
activities that are not described in any of the preceding paragraphs of this
subsection and that are necessary for developing, implementing, or
evaluating the comprehensive statewide system of community-integrated
long-term services and supports.
(1) ESTABLISHMENT AND DUTIES- To be eligible to receive a grant under
this section, each State shall establish a Consumer Task Force (referred to
in this section as the `Task Force') to assist the State in the development,
implementation, and evaluation of real choice systems change
initiatives.
(2) APPOINTMENT- Members of the Task Force shall be appointed by the
Chief Executive Officer of the State in accordance with the requirements of
paragraph (3), after the solicitation of recommendations from
representatives of organizations representing a broad range of individuals
with disabilities and organizations interested in individuals with
disabilities.
(A) IN GENERAL- The Task Force shall represent a broad range of
individuals with disabilities from diverse backgrounds and shall include
representatives from Developmental Disabilities Councils, Mental Health
Councils, State Independent Living Centers and Councils, Commissions on
Aging, organizations that provide services to individuals with
disabilities and consumers of long-term services and supports.
(B) INDIVIDUALS WITH DISABILITIES- A majority of the members of the
Task Force shall be individuals with disabilities or the representatives
of such individuals.
(C) LIMITATION- The Task Force shall not include employees of any
State agency providing services to individuals with disabilities other
than employees of agencies described in the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6000 et seq.) or the
Protection and Advocacy for Mentally Ill Individuals Act of 1986 (42
U.S.C. 10801 et seq.).
(e) AVAILABILITY OF FUNDS-
(1) FUNDS ALLOTTED TO STATES- Funds allotted to a State under a grant
made under this section for a fiscal year shall remain available until
expended.
(2) FUNDS NOT ALLOTTED TO STATES- Funds not allotted to States in the
fiscal year for which they are appropriated shall remain available in
succeeding fiscal years for allotment by the Secretary using the allotment
formula established by the Secretary under subsection (b)(2).
(f) ANNUAL REPORT- A State that receives a grant under this section shall
submit an annual report to the Secretary on the use of funds provided under
the grant. Each report shall include the number and percentage increase in the
number of eligible individuals in the State who receive long-term services and
supports in the most integrated setting appropriate, including through
community attendant services and supports and other community-based
settings.
(1) FISCAL YEAR 2001- For the purpose of making grants under this
section, there are appropriated, out of any funds in the Treasury not
otherwise appropriated, $50,000,000 for fiscal year 2001.
(2) FISCAL YEAR 2002 AND THEREAFTER- There is authorized to be
appropriated such sums as may be necessary to carry out this section for
fiscal year 2002 and each fiscal year thereafter.
END