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<dc:title>115 S2026 IS: Improving the Treatment of the U.S. Territories Under Federal Health Programs Act of 2017</dc:title>
<dc:publisher>U.S. Senate</dc:publisher>
<dc:date>2017-10-26</dc:date>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
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<form>
<distribution-code display="yes">II</distribution-code><congress>115th CONGRESS</congress><session>1st Session</session><legis-num>S. 2026</legis-num><current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber><action><action-date date="20171026">October 26, 2017</action-date><action-desc><sponsor name-id="S282">Mr. Nelson</sponsor> (for himself, <cosponsor name-id="S331">Mrs. Gillibrand</cosponsor>, <cosponsor name-id="S341">Mr. Blumenthal</cosponsor>, <cosponsor name-id="S306">Mr. Menendez</cosponsor>, and <cosponsor name-id="S370">Mr. Booker</cosponsor>) introduced the following bill; which was read twice and referred to the <committee-name committee-id="SSFI00">Committee on Finance</committee-name></action-desc></action><legis-type>A BILL</legis-type><official-title>To amend titles XVIII and XIX of the Social Security Act to make improvements to the treatment of
			 the United States territories under the Medicare and Medicaid programs,
			 and for other purposes.</official-title></form>
	<legis-body id="HF0658B6C5BFE49BA94AD3290D771D33B" style="OLC">
		<section id="H4265178F40B64781A5531C4932A97819" section-type="section-one"><enum>1.</enum><header>Short title; table of contents</header>
 <subsection id="H44BE28BE8B494AF7A569FD3FA6D3B445"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Improving the Treatment of the U.S. Territories Under Federal Health Programs Act of 2017</short-title></quote>.</text> </subsection><subsection id="HCEC7729D4F78410383B6A160CA30D96D"><enum>(b)</enum><header>Table of contents</header><text>The table of contents of this Act is as follows:</text><toc><toc-entry idref="H4265178F40B64781A5531C4932A97819" level="section">Sec. 1. Short title; table of contents.</toc-entry>
					<toc-entry idref="H012D867B2A1A4902A58957BE19921999" level="title">TITLE I—Medicaid</toc-entry>
					<toc-entry idref="H18FB1557F36E4B5890B77B62AAC99C1A" level="section">Sec. 101. Elimination of general Medicaid funding limitations (<quote>cap</quote>) for territories.</toc-entry>
					<toc-entry idref="HED4CA4BBE4B6459DBEB1385A16F467AA" level="section">Sec. 102. Elimination of specific Federal medical assistance percentage (FMAP) limitation for
			 territories.</toc-entry>
					<toc-entry idref="HEEC968F2512A4221B0E3F63A102499CA" level="section">Sec. 103. Application of Medicaid waiver authority to all of the territories.</toc-entry>
					<toc-entry idref="HB16AF19CFFA547A884D0216442531DCF" level="section">Sec. 104. Permitting Medicaid DSH allotments for territories.</toc-entry>
					<toc-entry idref="H5A0FFB2CD80F42CEB350EF3A0CF86AF5" level="title">TITLE II—Medicare</toc-entry>
					<toc-entry idref="H9622C2567ADA4B13B9EEC46E98FD3BFC" level="subtitle">Subtitle A—Part A</toc-entry>
					<toc-entry idref="H6BEC2D10E3354DBA923A944E39ED6B85" level="section">Sec. 201. Calculation of Medicare DSH payments for IPPS hospitals in Puerto Rico.</toc-entry>
					<toc-entry idref="H74355069FC644B0597DD15AABADC0B69" level="section">Sec. 202. Rebasing Target Amount for Hospitals in Territories.</toc-entry>
					<toc-entry idref="H5AA45CC1EC1E43DB8D4CB4409A495720" level="section">Sec. 203. Medicare DSH Target Adjustment for Hospitals in Territories.</toc-entry>
					<toc-entry idref="H5EC2AC1A669847A2BC682958B3967B4F" level="subtitle">Subtitle B—Part B</toc-entry>
					<toc-entry idref="HDA0BEC12E1194D5BBF6F2503AD13D713" level="section">Sec. 211. Application of part B deemed enrollment process to residents of Puerto Rico; special
			 enrollment period and limit on late enrollment penalties.</toc-entry>
					<toc-entry idref="HA5944A4F0A1E4A34BA23894DEDC5DA47" level="subtitle">Subtitle C—Medicare Advantage (Part C)</toc-entry>
					<toc-entry idref="H96E124BF02BA432C9E4ED3694ED1804D" level="section">Sec. 221. Adjustment in benchmark for low base payment counties in Puerto Rico.</toc-entry>
					<toc-entry idref="HA2D441699B614F6C826863ED7C27C08C" level="subtitle">Subtitle D—Part D</toc-entry>
					<toc-entry idref="id5E11026F065047D5A2C9E1393D95E125" level="section">Sec. 231. Eliminating exclusion of part D eligible individuals residing in territories from
			 eligibility for premium and cost-sharing subsidies.</toc-entry>
					<toc-entry idref="HCA419822896048668409A87269189B77" level="section">Sec. 232. Report on treatment of territories under Medicare part D.</toc-entry>
					<toc-entry idref="H90F023E7FF3E418CA6AE720DD6126612" level="title">TITLE III—Miscellaneous</toc-entry>
					<toc-entry idref="H4034DB65A63342D0BFD7DB625D8D972D" level="section">Sec. 301. Report on exclusion of territories from Exchanges.</toc-entry>
					<toc-entry idref="idc7f6c9fb154540a59d49b48ea5e9edc2" level="section">Sec. 302. Medicaid and CHIP territory transparency and information.</toc-entry>
				</toc>
			</subsection></section><title id="H012D867B2A1A4902A58957BE19921999"><enum>I</enum><header>Medicaid</header>
			<section commented="no" id="H18FB1557F36E4B5890B77B62AAC99C1A"><enum>101.</enum><header>Elimination of general Medicaid funding limitations (<quote>cap</quote>) for territories</header>
 <subsection commented="no" id="H384574FB0F9D496093A20F690CEE7999"><enum>(a)</enum><header>In general</header><text>Section 1108 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1308">42 U.S.C. 1308</external-xref>) is amended—</text> <paragraph commented="no" id="H8DB892A2E1E94B48BA28147ACD837689"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (f), in the matter before paragraph (1), by striking <quote>subsection (g)</quote> and inserting <quote>subsections (g) and (h)</quote>;</text>
 </paragraph><paragraph commented="no" id="H1BAECB8806464F18B86168F55027768A"><enum>(2)</enum><text>in subsection (g)(2), in the matter before subparagraph (A), by inserting <quote>and subsection (h)</quote> after <quote>paragraphs (3) and (5)</quote>; and</text> </paragraph><paragraph commented="no" id="HC264AE5C031B409C95AB297383F40E9F"><enum>(3)</enum><text>by adding at the end the following new subsection:</text>
						<quoted-block display-inline="no-display-inline" id="H69311B6E001943F59A18BFD965DC1F28" style="OLC">
							<subsection commented="no" id="HD964CB710B004568AD97F6620A24CA5D"><enum>(h)</enum><header>Sunset of Medicaid funding limitations for Puerto Rico, the Virgin Islands of the United States,
 Guam, the Northern Mariana Islands, and American Samoa</header><text display-inline="yes-display-inline">Subsections (f) and (g) shall not apply to Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, and American Samoa beginning with fiscal year 2018.</text></subsection><after-quoted-block>. </after-quoted-block></quoted-block>
					</paragraph></subsection><subsection commented="no" id="H332B292C655C418294EDEF93EDF61C98"><enum>(b)</enum><header>Conforming amendments</header>
 <paragraph id="HC35E219B11834980B568C172ADE5E7D0"><enum>(1)</enum><text display-inline="yes-display-inline">Section 1902(j) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(j)</external-xref>) is amended by striking <quote>, the limitation in section 1108(f),</quote>.</text> </paragraph><paragraph id="H46211EEDD03643C5B37552B9152C2FD2"><enum>(2)</enum><text>Section 1903(u) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396b">42 U.S.C. 1396b(u)</external-xref>) is amended by striking paragraph (4).</text>
 </paragraph><paragraph id="H8718DF778BFF412095F4EBC203121C17"><enum>(3)</enum><text>Section 1323(c)(1) of the Patient Protection and Affordable Care Act (<external-xref legal-doc="usc" parsable-cite="usc/42/18043">42 U.S.C. 18043(c)(1)</external-xref>) is amended by striking <quote>2019</quote> and inserting <quote>2018</quote>.</text>
 </paragraph></subsection><subsection id="HA12398E8FFDE41D4B8AF06DA409993AC"><enum>(c)</enum><header>Effective date</header><text>The amendments made by this section shall apply beginning with fiscal year 2018.</text> </subsection></section><section id="HED4CA4BBE4B6459DBEB1385A16F467AA"><enum>102.</enum><header>Elimination of specific Federal medical assistance percentage (FMAP) limitation for territories</header><text display-inline="no-display-inline">Section 1905 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396d">42 U.S.C. 1396d</external-xref>) is amended—</text>
 <paragraph id="id996C9B25FA7D446FBCD2FCF1225AA59A"><enum>(1)</enum><text display-inline="yes-display-inline">in subsection (b)(2), by inserting <quote>for fiscal years before fiscal year 2018</quote> after <quote>American Samoa</quote>; and</text>
 </paragraph><paragraph id="id097263FA6CCD496B81CE1705E07D3B93"><enum>(2)</enum><text>in subsection (y)(1), in the matter preceding subparagraph (A)—</text> <subparagraph id="idCB171A1AC3CB40A79296856E89B8EE4C"><enum>(A)</enum><text>by inserting <quote>, for fiscal years before fiscal year 2018,</quote> before <quote>is one of the</quote>; and</text>
 </subparagraph><subparagraph id="id48668A8550514DDC82FCEABFA5B85681"><enum>(B)</enum><text>by inserting <quote>and, for fiscal year 2018 and subsequent fiscal years, is one of the 50 States, the District of Columbia, Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, or American Samoa,</quote> after <quote>the District of Columbia</quote>.</text>
					</subparagraph></paragraph></section><section id="HEEC968F2512A4221B0E3F63A102499CA"><enum>103.</enum><header>Application of Medicaid waiver authority to all of the territories</header>
 <subsection id="HB2D13945EE9B40DB866B59CFD20A8763"><enum>(a)</enum><header>In general</header><text>Section 1902(j) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396a">42 U.S.C. 1396a(j)</external-xref>) is amended—</text> <paragraph id="HE550BF936ED0455AA4D379C8642C9972"><enum>(1)</enum><text>by striking <quote>American Samoa and the Northern Mariana Islands</quote> and inserting <quote>Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, and American Samoa</quote>;</text>
 </paragraph><paragraph id="H29BB3CF78E3A451DBA4C595213288613"><enum>(2)</enum><text display-inline="yes-display-inline">by striking <quote>American Samoa or the Northern Mariana Islands</quote> and inserting <quote>Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, or American Samoa</quote>;</text>
 </paragraph><paragraph id="idF6C6F575C65A4983B482DD8B9EB2AB39"><enum>(3)</enum><text>by striking <quote>, the limitation in section 1108(f),</quote>;</text> </paragraph><paragraph id="HC96E686A36D7424E991391B78DD7B76C"><enum>(4)</enum><text>by inserting <quote>(1)</quote> after <quote>(j)</quote>;</text>
 </paragraph><paragraph id="HA9AFEF102A6F42F9A351CBA5F4D30916"><enum>(5)</enum><text>by inserting <quote>except as otherwise provided in this subsection,</quote> after <quote>Notwithstanding any other requirement of this title</quote>; and</text> </paragraph><paragraph id="H0224CEDED6C64FB0BB68F09DD4C05B76"><enum>(6)</enum><text>by adding at the end the following:</text>
						<quoted-block display-inline="no-display-inline" id="H718123728EE548AF8058B55EBFFFDD6D" style="traditional">
 <paragraph id="HE5E88C3CCCD44D838C4A63B222E7BD3B" indent="up1"><enum>(2)</enum><text display-inline="yes-display-inline">The Secretary may not waive under this subsection the requirement of subsection (a)(10)(A)(i)(IX) (relating to coverage of adults formerly under foster care) with respect to any territory.</text></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
 </paragraph></subsection><subsection id="H3F28FB3D885345F184E1AB624DF51D30"><enum>(b)</enum><header>Effective date</header><text>The amendments made by this section shall apply beginning October 1, 2017.</text> </subsection></section><section id="HB16AF19CFFA547A884D0216442531DCF"><enum>104.</enum><header>Permitting Medicaid DSH allotments for territories</header><text display-inline="no-display-inline">Section 1923(f) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396">42 U.S.C. 1396</external-xref>) is amended—</text>
 <paragraph id="HA2E11513099D4EB1B0583D728C02631A"><enum>(1)</enum><text>in paragraph (6), by adding at the end the following new subparagraph:</text> <quoted-block display-inline="no-display-inline" id="HB2CB019E737F4053A37D619FDB203B51" style="OLC"> <subparagraph id="HD26D0E638ACE4FA0AE1DD25B489C851C"><enum>(C)</enum><header>Territories</header> <clause id="H3DDD2E34032747039DEB021E5862DFFE"><enum>(i)</enum><header>Fiscal year 2018</header><text display-inline="yes-display-inline">For fiscal year 2018, with respect to the territories of Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, and American Samoa, the DSH allotment determined for each such territory shall bear the same ratio to $150,000,000 as the ratio of the number of individuals who are low-income or uninsured and residing in each such respective territory (as estimated from time to time by the Secretary) bears to the sums of the number of such individuals residing in all of the territories.</text>
 </clause><clause id="H5A8A437E1A3642DF9ED37EF02C07B5DB"><enum>(ii)</enum><header>Subsequent fiscal year</header><text>For each subsequent fiscal year, the DSH allotment for each such territory is subject to an increase or reduction in accordance with paragraphs (3) and (7).</text></clause></subparagraph><after-quoted-block>; </after-quoted-block></quoted-block>
 </paragraph><paragraph id="H8EEBEB2AC8C44A9CA90CEE6CB3E35876"><enum>(2)</enum><text>in paragraph (7)(A), by striking clause (iv) and redesignating clause (v) as clause (iv); and</text> </paragraph><paragraph commented="no" display-inline="no-display-inline" id="id6948383BB7CE429B82831AA454F8C4B6"><enum>(3)</enum><text>in paragraph (9), by inserting before the period at the end the following: <quote>, and includes, beginning with fiscal year 2018, Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, and American Samoa</quote>.</text>
				</paragraph></section></title><title id="H5A0FFB2CD80F42CEB350EF3A0CF86AF5"><enum>II</enum><header>Medicare</header>
			<subtitle id="H9622C2567ADA4B13B9EEC46E98FD3BFC"><enum>A</enum><header>Part A</header>
 <section id="H6BEC2D10E3354DBA923A944E39ED6B85"><enum>201.</enum><header>Calculation of Medicare DSH payments for IPPS hospitals in Puerto Rico</header><text display-inline="no-display-inline">Section 1886(d)(9)(D)(iii) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(d)(9)(D)(iii)</external-xref>) is amended to read as follows:</text>
					<quoted-block display-inline="no-display-inline" id="H60CD3417FA174C07A00B492EBAF80947" style="OLC">
 <clause id="H5060B168275A4678AE852F2CB09114C5" indent="up2"><enum>(iii)</enum><text display-inline="yes-display-inline">Subparagraph (F) (relating to disproportionate share payments), including application of subsection (r), except that for this purpose—</text>
 <subclause id="H1F04E348B11D44059ABA3B8E14C45029"><enum>(I)</enum><text display-inline="yes-display-inline">the sum described in clause (ii) of this subparagraph shall be substituted for the sum referred to in paragraph (5)(F)(ii)(I); and</text>
 </subclause><subclause id="H6C30E135A3A045D8827F70D106D981F8"><enum>(II)</enum><text display-inline="yes-display-inline">for discharges occurring on or after October 1, 2017, subclause (I) of paragraph (5)(F)(vi) shall be applied by substituting for the numerator described in such subclause the number of subsection (d) Puerto Rico hospital’s patient days for the cost reporting period involved which were made up of patients who (for such days) were entitled to benefits under part A of this title and were—</text>
 <item id="HD2B904A831EF462CBBB645A334808061"><enum>(aa)</enum><text>entitled to supplementary security income benefits (excluding any State supplementation) under title XVI of this Act;</text>
 </item><item id="H78C3D863C0784062B8AA0DFC9FEB4B59"><enum>(bb)</enum><text>eligible for medical assistance under a State plan under title XIX; or</text> </item><item id="H86E5D958E85646D495F1E202A6DFF65E"><enum>(cc)</enum><text display-inline="yes-display-inline">receiving aid or assistance under any plan of the State approved under title I, X, XIV, or XVI.</text></item></subclause></clause><after-quoted-block>.</after-quoted-block></quoted-block>
 </section><section id="H74355069FC644B0597DD15AABADC0B69"><enum>202.</enum><header>Rebasing Target Amount for Hospitals in Territories</header><text display-inline="no-display-inline">Section 1886(b)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(b)(3)</external-xref>) is amended by adding at the end the following new subparagraph:</text>
					<quoted-block display-inline="no-display-inline" id="H6178587A6D9342CA80BD8BC9B88C22AB" style="OLC">
						<subparagraph id="H2A8E2FFDA22D49359930335D054E4862"><enum>(M)</enum>
 <clause commented="no" display-inline="yes-display-inline" id="H3C62468CE54847BABFC4FC7F71819D8B"><enum>(i)</enum><text display-inline="yes-display-inline">For each cost reporting period beginning on or after October 1, 2017, in the case of a hospital located in a territory of the United States, there shall be substituted for the target amount otherwise determined under subparagraph (A) the rebased target amount (as defined in clause (ii)), if such substitution results in an amount of payment under this section to the hospital for such period that is greater than the amount of payment that would be made under this section to the hospital for such period if this subparagraph were not to apply.</text>
 </clause><clause id="HD77FE22473244D1E882978C1DCDC1D7D" indent="up1"><enum>(ii)</enum><text>For purposes of this subparagraph, the term <quote>rebased target amount</quote> has the meaning given the term <quote>target amount</quote> in subparagraph (A), except that—</text> <subclause id="HE168425167C746549BE8700A3354C189"><enum>(I)</enum><text display-inline="yes-display-inline">there shall be substituted for the base cost reporting period the 12-month cost reporting period beginning during fiscal year 2015;</text>
 </subclause><subclause id="H99945462313D435C9422189956838CDF"><enum>(II)</enum><text>any reference in subparagraph (A)(i) to the <quote>first such cost reporting period</quote> is deemed a reference to the first cost reporting period beginning on or after October 1, 2017; and</text>
 </subclause><subclause id="H30751316A051473EA36915ECE351EE23"><enum>(III)</enum><text>the applicable percentage increase shall only be applied under subparagraph (B)(ii) for cost reporting periods beginning on or after October 1, 2017.</text>
 </subclause></clause><clause id="H59528977A2814FD98D315F94B868DFDD" indent="up1"><enum>(iii)</enum><text>Nothing in this subparagraph shall affect any rebasing request by a hospital for any cost reporting period beginning during a fiscal year before fiscal year 2015.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
 </section><section id="H5AA45CC1EC1E43DB8D4CB4409A495720"><enum>203.</enum><header>Medicare DSH Target Adjustment for Hospitals in Territories</header><text display-inline="no-display-inline">Section 1886(b)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(b)(3)</external-xref>), as amended by section 202, is further amended by adding at the end the following new subparagraph:</text>
					<quoted-block display-inline="no-display-inline" id="HD390968D22354BF48976913215735205" style="OLC">
						<subparagraph id="HB938BCBF5E5B41EB832228F15CD38718"><enum>(N)</enum>
 <clause commented="no" display-inline="yes-display-inline" id="H747BA033E0E14BEEB13A2C4D25148C05"><enum>(i)</enum><text display-inline="yes-display-inline">For each cost reporting period beginning on or after October 1, 2017, in the case of a hospital that is located in a territory of the United States other than Puerto Rico and that would be a subsection (d) hospital if it were located in one of the 50 States, the target amount shall be increased by—</text>
 <subclause id="H13767831A18F4E99B80DCAF4A24A543F" indent="up1"><enum>(I)</enum><text>in the case that such hospital has a disproportionate patient percentage of not less than 15 percent and not greater than 40 percent, 10 percent; and</text>
 </subclause><subclause id="HD7DA8267E5FD41DB99BB422A9947BD76" indent="up1"><enum>(II)</enum><text>in the case that such hospital has a disproportionate patient percentage of greater than 40 percent, 10 percent plus 60 percent of the number of percentage points by which such hospital’s disproportionate patient percentage exceeds 40 percent.</text>
 </subclause></clause><clause id="HE3E5089A2EED49BB8525EBF1E7BDABF4" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">For purposes of this subparagraph, the term <quote>disproportionate patient percentage</quote> has the meaning given such term in subsection (d)(5)(F)(vi), except that in applying such meaning any reference under such subsection to individuals entitled to supplementary security income under title XVI shall be deemed for purposes of this subparagraph to include individuals—</text>
 <subclause id="HAA235F1579C241FE9C0B493D17EB72E0"><enum>(I)</enum><text>eligible for medical assistance under a State plan under title XIX; or</text> </subclause><subclause commented="no" display-inline="no-display-inline" id="HBE98974B3B6D40B4A2BDCE76AF985E54"><enum>(II)</enum><text>receiving aid or assistance under any plan of the territory approved under title I, X, XIV, or XVI.</text></subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</section></subtitle><subtitle id="H5EC2AC1A669847A2BC682958B3967B4F"><enum>B</enum><header>Part B</header>
				<section id="HDA0BEC12E1194D5BBF6F2503AD13D713" section-type="subsequent-section"><enum>211.</enum><header>Application of part B deemed enrollment process to residents of Puerto Rico; special enrollment
			 period and limit on late enrollment penalties</header>
 <subsection id="HFE66B217732049D6BC8991F8BDD91514"><enum>(a)</enum><header>Application of part B deemed enrollment process to residents of Puerto Rico</header><text display-inline="yes-display-inline">Section 1837(f)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395p">42 U.S.C. 1395p(f)(3)</external-xref>) is amended by striking <quote>, exclusive of Puerto Rico</quote>.</text> </subsection><subsection id="H7879E629DE5B4D8785CB794332019BE5"><enum>(b)</enum><header>Effective date</header><text>The amendment made by subsection (a) shall apply to individuals whose initial enrollment period under section 1837(d) of the Social Security Act begins on or after the first day of the effective month, specified by the Secretary of Health and Human Services under section 1839(j)(1)(C) of such Act, as added by subsection (c)(2).</text>
					</subsection><subsection id="H9808A027357A428F8AFF67408753BAAB"><enum>(c)</enum><header>Transition providing special enrollment period and limit on late enrollment penalties for certain
 Medicare beneficiaries</header><text display-inline="yes-display-inline">Section 1839 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395r">42 U.S.C. 1395r</external-xref>) is amended—</text> <paragraph id="H42579B8D54A9401094E6355B3CC47F88"><enum>(1)</enum><text display-inline="yes-display-inline">in the first sentence of subsection (b), by inserting <quote>subject to section 1839(j)(2),</quote> after <quote>subsection (i)(4) or (l) of section 1837,</quote>; and</text>
 </paragraph><paragraph id="H123A85F2022741B2AB2E970259BA926C"><enum>(2)</enum><text>by adding at the end the following new subsection:</text> <quoted-block display-inline="no-display-inline" id="HA2CB9510085849E795B386FA005EA67A" style="OLC"> <subsection id="H1D616FF135294EA689F67EB16AD283E6"><enum>(j)</enum><header>Special rules for certain residents of Puerto Rico</header> <paragraph id="H3B0CEC3804D7476A87C5309BA7D3C229"><enum>(1)</enum><header>Special enrollment period, coverage period for residents who are eligible but not enrolled</header> <subparagraph id="H6C86A4A652D146D28BE7D1910D2B3897"><enum>(A)</enum><header>In general</header><text>In the case of a transition individual (as defined in paragraph (3)) who is not enrolled under this part as of the day before the first day of the effective month (as defined in subparagraph (C)), the Secretary shall provide for a special enrollment period under section 1837 of 7 months beginning with such effective month during which the individual may be enrolled under this part.</text>
 </subparagraph><subparagraph id="H83FDA5E24C604FE3BFA39BD6F9D25478"><enum>(B)</enum><header>Coverage period</header><text>In the case of such an individual who enrolls during such special enrollment period, the coverage period under section 1838 shall begin on the first day of the second month after the month in which the individual enrolls.</text>
 </subparagraph><subparagraph id="H2F2D7AE0710A40CC88D7D06CAA6C21F8"><enum>(C)</enum><header>Effective month defined</header><text>In this section, the term <term>effective month</term> means a month, not earlier than October 2017 and not later than January 2018, specified by the Secretary.</text>
										</subparagraph></paragraph><paragraph id="HEFC3B079991346DEA8DCAFB5C094521A"><enum>(2)</enum><header>Reduction in late enrollment penalties for current enrollees and individuals enrolling during
			 transition</header>
 <subparagraph id="H439EB26A084F4FC9A67BB4CE1B156C0C"><enum>(A)</enum><header>In general</header><text>In the case of a transition individual who is enrolled under this part as of the day before the first day of the effective month or who enrolls under this part on or after the date of the enactment of this subsection but before the end of the special enrollment period under paragraph (1)(A), the amount of the late enrollment penalty imposed under section 1839(b) shall be recalculated by reducing the penalty to 15 percent of the penalty otherwise established.</text>
 </subparagraph><subparagraph id="H00530E8304AE483A90303756BEDED58C"><enum>(B)</enum><header>Application</header><text display-inline="yes-display-inline">Subparagraph (A) shall be applied in the case of a transition individual who—</text> <clause id="HC3CD33BADE4A42ADAA86F0D2BAB21D86"><enum>(i)</enum><text>is enrolled under this part as of the month before the effective month, for premiums for months beginning with such effective month; or</text>
 </clause><clause id="H91B63151555447619BED619DCFE1E774"><enum>(ii)</enum><text>enrolls under this part on or after the date of the enactment of this Act and before the end of the special enrollment period under paragraph (1)(A), for premiums for months during the coverage period under this part which occur during or after the effective month.</text>
 </clause></subparagraph><subparagraph id="H92DA1F2F615F4C6CA64CA9A57EE1E3ED"><enum>(C)</enum><header>Loss of reduction if individual terminates enrollment</header><text>Subparagraph (A) shall not apply to a transition individual if the individual terminates enrollment under this part after the end of the special enrollment period under paragraph (1).</text>
 </subparagraph></paragraph><paragraph id="HF65F8AC7B9BC41C389AC354CB8955832"><enum>(3)</enum><header>Transition individual defined</header><text display-inline="yes-display-inline">In this section, the term <term>transition individual</term> means an individual who resides in Puerto Rico and who would have been deemed enrolled under this part pursuant to section 1837(f) before the first day of the effective month but for the fact that the individual was a resident of Puerto Rico, regardless of whether the individual is enrolled under this part as of such first day.</text></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
						</paragraph></subsection></section></subtitle><subtitle id="HA5944A4F0A1E4A34BA23894DEDC5DA47"><enum>C</enum><header>Medicare Advantage (Part C)</header>
 <section id="H96E124BF02BA432C9E4ED3694ED1804D"><enum>221.</enum><header>Adjustment in benchmark for low base payment counties in Puerto Rico</header><text display-inline="no-display-inline">Section 1853(n) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-23">42 U.S.C. 1395w–23(n)</external-xref>) is amended—</text> <paragraph id="HD1477D31D3E04E34971A10BC4257F8F8"><enum>(1)</enum><text>in paragraph (1), by striking <quote>and (5)</quote> and inserting <quote>, (5), and (6)</quote>;</text>
 </paragraph><paragraph id="H2E6997C2D5884354B7A64346E950C405"><enum>(2)</enum><text>in paragraph (4), by striking <quote>In no case</quote> and inserting <quote>Subject to paragraph (6), in no case</quote>; and</text> </paragraph><paragraph id="HCA964270C9BF4F0C840372C0891F4008"><enum>(3)</enum><text>by adding at the end the following new paragraph:</text>
						<quoted-block display-inline="no-display-inline" id="H84749E67B9EA473E9716C9333063BCE2" style="OLC">
							<paragraph id="HA8DB9975C00743D9B6BE23F5486D029E"><enum>(6)</enum><header>Special rules for blended benchmark amount for territories</header>
 <subparagraph id="H16EB075FA8D44CA1B4F075318BD1EE30"><enum>(A)</enum><header>In general</header><text>Subject to paragraph (2), the blended benchmark amount for an area in a territory for a year (beginning with 2018) shall not be less than 80 percent of the national average of the base payment amounts specified in subparagraph (2)(E) for such year for areas within the 50 States and the District of Columbia.</text>
 </subparagraph><subparagraph id="HFB2379FD69744E89B891D98714F4C725"><enum>(B)</enum><header>Limitation</header><text>In no case shall the blended benchmark amount for an area in a territory for a year under subparagraph (A) exceed the lowest blended benchmark amount for any area within the 50 States and the District of Columbia for such year.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></section></subtitle><subtitle id="HA2D441699B614F6C826863ED7C27C08C"><enum>D</enum><header>Part D</header>
				<section id="id5E11026F065047D5A2C9E1393D95E125"><enum>231.</enum><header>Eliminating exclusion of part D eligible individuals residing in territories from eligibility for
			 premium and cost-sharing subsidies</header>
 <subsection id="id68A7B786C0EB4FD3A3EDDBE94A388B86"><enum>(a)</enum><header>In general</header><text>Section 1860D–14(a)(3) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395w-114">42 U.S.C. 1395w–114(a)(3)</external-xref>) is amended—</text> <paragraph id="idF8A7F53CF3BF4DA684B2D50FB09A07EB"><enum>(1)</enum><text>in subparagraph (A), in the matter preceding clause (i), by striking <quote>subject to subparagraph (F),</quote>;</text>
 </paragraph><paragraph id="id01B1E855044B45079C6EB014BFB938E3"><enum>(2)</enum><text>in subparagraph (B)(v), in the matter preceding subclause (I), by striking <quote>Subject to subparagraph (F), the Secretary</quote> and inserting <quote>The Secretary</quote>;</text> </paragraph><paragraph id="idA3C977D271F94208890D12902B33ED4C"><enum>(3)</enum><text>in subparagraph (C), by adding at the end the following new sentence: <quote>In the case of an individual who is not a resident of the 50 States or the District of Columbia, the poverty line (as such term is defined in clause (ii)) that shall apply to such individual shall be the poverty line for the 48 contiguous States and the District of Columbia.</quote>; and</text>
 </paragraph><paragraph id="idD2506635EC83400594D37E42655C9033"><enum>(4)</enum><text>by striking subparagraph (F).</text> </paragraph></subsection><subsection id="idF3D95F7D95BA496ABA16AC8000174741"><enum>(b)</enum><header>Application of Medicaid provisions</header><text>Section 1935 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396u-5">42 U.S.C. 1396u–5</external-xref>) is amended—</text>
 <paragraph id="id1CC1E9EB59084754A23EA3F429D5D9ED"><enum>(1)</enum><text>in subsection (a), by striking <quote>subject to subsection (e)</quote> in the matter preceding paragraph (1); and</text> </paragraph><paragraph id="id9670AB8BDB4F48EABB594CD6E12FDA6C"><enum>(2)</enum><text>by striking subsection (e).</text>
 </paragraph></subsection><subsection id="id32D1F69168424C61880BF8AFC501E8DB"><enum>(c)</enum><header>Conforming amendment</header><text>Section 1108(f) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1308">42 U.S.C. 1308(f)</external-xref>) is amended by striking <quote>and section 1935(e)(1)(B)</quote> in the matter preceding clause (i).</text> </subsection><subsection commented="no" display-inline="no-display-inline" id="id9E1B6C2016DB40F1AA7E73CF2441B0B7"><enum>(d)</enum><header>Effective date</header><text>The amendments made by this section shall take effect on January 1, 2018.</text>
 </subsection></section><section id="HCA419822896048668409A87269189B77"><enum>232.</enum><header>Report on treatment of territories under Medicare part D</header><text display-inline="no-display-inline">Paragraph (4) of section 1935(e) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396u-5">42 U.S.C. 1396u–5(e)</external-xref>) is amended to read as follows:</text>
					<quoted-block display-inline="no-display-inline" id="H5B5FB42DF0274E5A958F2A9B5714FC63" style="OLC">
						<paragraph id="HD19B8F1AB9EF45D8B706AA17688EF1EF"><enum>(4)</enum><header>Report on application of subsection</header>
 <subparagraph id="HFDA3053D71674A6ABD943425ABFFB9B9"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than May 1, 2018, the Secretary shall submit to Congress a report on the application of this subsection during the period beginning with fiscal year 2006 and ending with December 31, 2017.</text>
 </subparagraph><subparagraph id="HB881A83E4A324F559C2319F26CF4B17F"><enum>(B)</enum><header>Information to be included in report</header><text display-inline="yes-display-inline">Such report shall include—</text> <clause id="H5AB552DE1C3C4529876E91915F769AEA"><enum>(i)</enum><text>program guidance issued by the Secretary to implement this subsection;</text>
 </clause><clause id="HCE2505506CBD4DC8B513ACF98ECC8AA0"><enum>(ii)</enum><text>for each of Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, and American Samoa, information on the increased amount under paragraph (3) and how the territory has applied such amount, including the territory’s program design, expenditures, and number of individuals (and dual-eligible individuals) assisted; and</text>
 </clause><clause id="H68882C6BB5174FE395E4E90A647E0AC6"><enum>(iii)</enum><text>a description of the differences between how such territories are treated under part D of title XVIII and under this title compared with the treatment of the 50 States and the District of Columbia under such part and this title for different fiscal years within the period covered under the report.</text>
 </clause></subparagraph><subparagraph id="HDBE5F1A292A14FEC9871F3C675FAD86E"><enum>(C)</enum><header>Recommendations</header><text display-inline="yes-display-inline">Such report shall include recommendations for improving prescription drug coverage for low-income individuals in each territory identified in subparagraph (B)(ii), including recommendations regarding each of the following alternative approaches:</text>
 <clause id="H87D750CCE9F34584B462734CE5D3D0A7"><enum>(i)</enum><text>Adjusting the aggregate amount specified in paragraph (3)(B).</text> </clause><clause commented="no" display-inline="no-display-inline" id="H6583F949205A44B3834C7149071EB87E"><enum>(ii)</enum><text>Allowing residents of the territories to be subsidy eligible individuals under section 1860D–14, notwithstanding subsection (a)(3)(F) of such section, or providing substantially equivalent low-income prescription drug subsidies to such residents.</text></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</section></subtitle></title><title id="H90F023E7FF3E418CA6AE720DD6126612"><enum>III</enum><header>Miscellaneous</header>
			<section id="H4034DB65A63342D0BFD7DB625D8D972D"><enum>301.</enum><header>Report on exclusion of territories from Exchanges</header>
 <subsection id="HE43416356A864D07B5D4949CEB0A7699"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Not later than February 1, 2019, the Secretary of Health and Human Services shall submit to Congress a report that details the adverse impacts in each territory from the practical exclusion of the territories from the provisions of part II of subtitle D of title I of the Patient Protection and Affordable Care Act insofar as such provisions provide for the establishment of an American Health Benefit Exchange or the administration of a federally facilitated Exchange in each State and in the District of Columbia for the purpose of making health insurance more affordable and accessible for individuals and small businesses.</text>
 </subsection><subsection id="H8B0A17BD01644FF9BF7A5BDC9A080FFA"><enum>(b)</enum><header>Information in report</header><text>The report shall include information on the following:</text> <paragraph id="HF1DC4A0BEF9C4776A73C55D43F1438C3"><enum>(1)</enum><text>An estimate of the total number of uninsured and underinsured individuals residing in each territory with respect to health insurance coverage.</text>
 </paragraph><paragraph id="HA5FB18D1B4F14C84A31F2FF1AD764F70"><enum>(2)</enum><text>A description of the number of health insurance issuers in each territory and the health insurance plans these issuers offer.</text>
 </paragraph><paragraph id="H11A184CE45654089BF781B47769BAF40"><enum>(3)</enum><text>An estimate of the number of individuals residing in each territory who are denied premium and cost-sharing assistance that would otherwise be available to them for obtaining health insurance coverage through an Exchange if they resided in one of the 50 States or in the District of Columbia.</text>
 </paragraph><paragraph id="HA4CDC5D7BCDC4503BCD9DAD3C5239D18"><enum>(4)</enum><text>An estimate of the amount of Federal assistance described in paragraph (3) that is not being made available to residents of each territory.</text>
 </paragraph><paragraph id="HB57567BE062C4807B7483B2965D5971E"><enum>(5)</enum><text>An estimate of the number of small employers in each territory that would be eligible to purchase health insurance coverage through a Small Business Health Options Program (SHOP) Marketplace that would operate as part of an Exchange if the employers were in one of the 50 States or in the District of Columbia.</text>
					</paragraph></subsection></section><section id="idc7f6c9fb154540a59d49b48ea5e9edc2"><enum>302.</enum><header>Medicaid and CHIP territory transparency and information</header>
 <subsection id="ide6be5640469a46a1947ad17a7de8a4a5"><enum>(a)</enum><header>Publication of Information on Federal Expenditures Under Medicaid and CHIP in the Territories</header><text>Not later than 180 days after the date of enactment of this Act, the Secretary of Health and Human Services shall publish, and periodically update, on the Internet site of the Centers for Medicare &amp; Medicaid Services information on Medicaid and CHIP carried out in the territories of the United States. Such information shall include, with respect to each such territory—</text>
 <paragraph id="id1b02396c959744ca96f26b45e6eecfa7"><enum>(1)</enum><text>the income levels established by the territory for purposes of eligibility of an individual to receive medical assistance under Medicaid or child health assistance under CHIP;</text>
 </paragraph><paragraph id="idd37cc18c91604c7ab6a3368c426ef278"><enum>(2)</enum><text>the number of individuals enrolled in Medicaid and CHIP in such territory;</text> </paragraph><paragraph id="id20e90032785849e9a259c4b3772bbfd8"><enum>(3)</enum><text>any State plan amendments in effect to carry out Medicaid or CHIP in such territory;</text>
 </paragraph><paragraph id="id27e8f7a3f59641aba3675420bf984d47"><enum>(4)</enum><text>any waiver of the requirements of title XIX or XXI of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396">42 U.S.C. 1396</external-xref> et seq., 1397aa et seq.) issued by the Secretary to carry out Medicaid or CHIP in the territory, including a waiver under section 1115 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1315">42 U.S.C. 1315</external-xref>), any application for such a waiver, and any documentation related to such application (including correspondence);</text>
 </paragraph><paragraph id="id2661ef91ef564afe82be1c73a944f0e6"><enum>(5)</enum><text>the amount of the Federal and non-Federal share of expenditures under Medicaid and CHIP in such territory;</text>
 </paragraph><paragraph id="id69c149ec84754597a4809449b0515f8a"><enum>(6)</enum><text>the systems in place for the furnishing of health care items and services under Medicaid and CHIP in such territory;</text>
 </paragraph><paragraph id="idf2b8591df2db4da29f56bb9481f26305"><enum>(7)</enum><text>the design of CHIP in such territory; and</text> </paragraph><paragraph id="id59543ecd12cc46b385aa4113b00de987"><enum>(8)</enum><text>other information regarding the carrying out of Medicaid and CHIP in the territory that is published on such Internet site with respect to carrying out Medicaid and CHIP in each of the 50 States and the District of Columbia.</text>
 </paragraph></subsection><subsection id="idc2666e6ec8c74ae5831243727273869e"><enum>(b)</enum><header>Definitions</header><text>In this section:</text> <paragraph id="id33487be7cbd848c3800b5ab72abd58d2"><enum>(1)</enum><header>CHIP</header><text>The term <term>CHIP</term> means the State Children's Health Insurance Program established under title XXI of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1397aa">42 U.S.C. 1397aa</external-xref> et seq.).</text>
 </paragraph><paragraph id="ida9b7b8a619e84971ba197789d4daf9bd"><enum>(2)</enum><header>Medicaid</header><text>The term <term>Medicaid</term> means the Medicaid program established under title XIX of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1396">42 U.S.C. 1396</external-xref> et seq.).</text>
 </paragraph><paragraph id="id2589718744f44eeda8e3d4135a3ebb36"><enum>(3)</enum><header>Territory of the United States</header><text>The term <term>territory of the United States</term> means Puerto Rico, the Virgin Islands of the United States, Guam, the Northern Mariana Islands, and American Samoa.</text></paragraph></subsection></section></title></legis-body></bill>


