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106th CONGRESS
2d Session
H. R. 5614
To amend part C of title XVIII of the Social Security Act to improve
the Medicare+Choice Program.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
November 1, 2000
Mr. Ackerman introduced the following bill; which was referred to the
Committee on Ways and Means, and in addition to the Committee on
Commerce, 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 part C of title XVIII of the Social Security Act to improve
the Medicare+Choice Program.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Seniors' Health Care Restoration Act
of 2000''.
SEC. 2. INCREASED PAYMENT FOR AREAS WITH TWO OR FEWER MEDICARE+CHOICE
CONTRACTS.
Section 1853 of the Social Security Act (42 U.S.C. 1395w-23) is
amended--
(1) in subsection (a)(1)(A), by striking ``and (i)'' and
inserting ``(i), and (j)''; and
(2) by adding at the end the following new subsection:
``(j) Increased Payment for Areas With 2 or Fewer Medicare+Choice
Contracts.--For months during 2002 and 2003, in the case of a
Medicare+Choice payment area in which there is no more than two
contracts entered into under this part as of July 1 before the
beginning of the year involved, the amount of the monthly payment
otherwise made under this section (taking into account, if applicable,
subsection (i)) shall be increased by \1/2\ percentage point of the
total monthly payment otherwise computed for such payment area.''.
SEC. 3. INCREASE IN MINIMUM PERCENTAGE UPDATE.
Section 1853(c)(1)(C)(ii) of the Social Security Act (42 U.S.C.
1395w-23(c)(1)(C)(ii)) is amended by inserting ``(or 104 percent in the
case of 2001, 2002, and 2003)'' after ``102 percent''.
SEC. 4. TRANSITION TO REVISED MEDICARE+CHOICE PAYMENT RATES.
(a) Announcement of Revised Medicare+Choice Payment Rates.--Within
2 weeks after the date of the enactment of this Act, the Secretary of
Health and Human Services shall determine, and shall announce (in a
manner intended to provide notice to interested parties)
Medicare+Choice capitation rates under section 1853 of the Social
Security Act (42 U.S.C. 1395w-23) for 2001, revised in accordance with
the provisions of this Act.
(b) Reentry Into Program Permitted for Medicare+Choice Programs in
2000.--A Medicare+Choice organization that provided notice to the
Secretary of Health and Human Services as of July 3, 2000, that it was
terminating its contract under part C of title XVIII of the Social
Security Act or was reducing the service area of a Medicare+Choice plan
offered under such part shall be permitted to continue participation
under such part, or to maintain the service area of such plan, for 2001
if it provides the Secretary with the information described in section
1854(a)(1) of the Social Security Act (42 U.S.C. 1395w-24(a)(1)) within
4 weeks after the date of the enactment of this Act.
(c) Revised Submission of Proposed Premiums and Related
Information.--If--
(1) a Medicare+Choice organization provided notice to the
Secretary of Health and Human Services as of July 3, 2000, that
it was renewing its contract under part C of title XVIII of the
Social Security Act for all or part of the service area or
areas served under its current contract, and
(2) any part of the service area or areas addressed in such
notice includes a county for which the Medicare+Choice
capitation rate under section 1853(c) of such Act (42 U.S.C.
1395w-23(c)) for 2001, as determined under subsection (a), is
higher than the rate previously determined for such year,
such organization shall revise its submission of the information
described in section 1854(a)(1) of the Social Security Act (42 U.S.C.
1395w-24(a)(1)), and shall submit such revised information to the
Secretary, within 4 weeks after the date of the enactment of this Act.
SEC. 5. PROVISION OF EMERGENCY OUTPATIENT PRESCRIPTION DRUG COVERAGE
FOR MEDICARE BENEFICIARIES LOSING DRUG COVERAGE UNDER
MEDICARE+CHOICE PLANS.
(a) Temporary Coverage of Outpatient Prescription Drugs for
Medicare Beneficiaries Losing Prescription Drug Coverage Under
Medicare+Choice Plans.--
(1) In general.--The Secretary of Health and Human Services
shall provide for coverage of outpatient prescription drugs to
eligible medicare beneficiaries under this section. The
Secretary shall provide for such coverage by entering into
agreements with eligible organizations to furnish such
coverage.
(2) Term of emergency coverage.--The Secretary shall
provide coverage of outpatient prescription drugs to an
eligible medicare beneficiary under this section for the 24-
month period beginning on the date the eligible medicare
beneficiary loses coverage of outpatient prescription drugs
under the Medicare+Choice plan in which the beneficiary is
enrolled.
(3) Cost-sharing.--With respect to coverage of outpatient
prescription drugs furnished under this section, benefits under
this section shall not begin until the eligible medicare
beneficiary has met a $50 deductible.
(4) Payment.--The Secretary shall provide for payment for
such coverage under this section from the Emergency Reserve
Outpatient Prescription Drug Account established under
subsection (b).
(b) Account for Emergency Outpatient Prescription Drug Benefit in
SMI Trust Fund.--
(1) Establishment.--There is hereby established in the
Federal Supplementary Medical Insurance Trust Fund under
section 1841 of the Social Security Act (42 U.S.C. 1395t) an
expenditure account to be known as the ``Emergency Reserve
Outpatient Prescription Drug Account''.
(2) Crediting of funds.--The Managing Trustee shall credit
to the Emergency Reserve Outpatient Prescription Drug Account
such amounts as may be deposited in the Federal Supplementary
Medical Insurance Trust Fund as follows:
(A) Amounts appropriated to the account.
(B) Amounts equal to the annual outstanding balance
of the Health Care Fraud and Abuse Control Account
under section 1817(k) of the Social Security Act (42
U.S.C. 1395i(k)) at the end of each fiscal year that
the Secretary determines may be made available to the
Emergency Reserve Outpatient Prescription Drug Account.
(3) Use of funds.--Funds credited to the Outpatient
Prescription Drug Account may only be used to pay for
outpatient prescription drugs (and associated administrative
costs) furnished under this section.
(4) Conforming amendment.--Section 1817(k)(3)(C) of such
Act (42 U.S.C. 1395i(k)(3)(C)) is amended--
(A) by striking ``and'' at the end of clause (iv);
(B) by striking the period at the end of clause (v)
and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(vi) providing temporary emergency
coverage of outpatient prescription drugs for
eligible beneficiaries under section 5 of the
Seniors' Health Care Restoration Act of
2000.''.
(c) Definitions.--In this section:
(1) Eligible medicare beneficiary.--The term ``eligible
medicare beneficiary'' means an individual--
(A) who is enrolled in a Medicare+Choice plan under
part C of title XVIII of the Social Security Act; and
(B)(i) whose enrollment in such plan is terminated
or may not be renewed or whose service area has been
reduced for the next contract year because the plan has
been terminated or will not be offered in such contract
year; or
(ii) whose coverage of outpatient prescription
drugs under such plan has been terminated,
significantly reduced, or no longer provides for the
coverage of a particular outpatient prescription drug
required.
(2) Covered outpatient drug.--
(A) In general.--Except as provided in subparagraph
(B), the term ``covered outpatient drug'' means any of
the following products:
(i) A drug which may be dispensed only upon
prescription, and--
(I) which is approved for safety
and effectiveness as a prescription
drug under section 505 of the Federal
Food, Drug, and Cosmetic Act;
(II)(aa) which was commercially
used or sold in the United States
before the date of enactment of the
Drug Amendments of 1962 or which is
identical, similar, or related (within
the meaning of section 310.6(b)(1) of
title 21 of the Code of Federal
Regulations) to such a drug, and (bb)
which has not been the subject of a final determination by the
Secretary that it is a ``new drug'' (within the meaning of section
201(p) of the Federal Food, Drug, and Cosmetic Act) or an action
brought by the Secretary under section 301, 302(a), or 304(a) of such
Act to enforce section 502(f) or 505(a) of such Act; or
(III)(aa) which is described in
section 107(c)(3) of the Drug
Amendments of 1962 and for which the
Secretary has determined there is a
compelling justification for its
medical need, or is identical, similar,
or related (within the meaning of
section 310.6(b)(1) of title 21 of the
Code of Federal Regulations) to such a
drug, and (bb) for which the Secretary
has not issued a notice of an
opportunity for a hearing under section
505(e) of the Federal Food, Drug, and
Cosmetic Act on a proposed order of the
Secretary to withdraw approval of an
application for such drug under such
section because the Secretary has
determined that the drug is less than
effective for all conditions of use
prescribed, recommended, or suggested
in its labeling.
(ii) A biological product which--
(I) may only be dispensed upon
prescription;
(II) is licensed under section 351
of the Public Health Service Act; and
(III) is produced at an
establishment licensed under such
section to produce such product.
(iii) Insulin approved under appropriate
Federal law.
(iv) A prescribed drug or biological
product that would meet the requirements of
clause (i) or (ii) but that is available over-
the-counter in addition to being available upon
prescription.
(B) Exclusion.--The term ``covered outpatient
drug'' does not include any product--
(i) except as provided in subparagraph
(A)(iv), which may be distributed to
individuals without a prescription;
(ii) when furnished as part of, or as
incident to, a diagnostic service or any other
item or service for which payment may be made
under title XVIII of the Social Security Act;
or
(iii) that is a therapeutically equivalent
replacement for a product described in clause
(i) or (ii), as determined by the Secretary.
(3) Eligible organization.--The term ``eligible
organization'' means any organization that the Secretary
determines to be appropriate, including--
(A) pharmaceutical benefit management companies;
(B) wholesale and retail pharmacist delivery
systems;
(C) insurers;
(D) other organizations; or
(E) any combination of the entities described in
subparagraphs (A) through (D).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Health and Human Services.
<all>
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