[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 274 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 274

 To amend title XVIII of the Social Security Act to provide incentive 
   payments for multi-year contracts entered into by Medicare+Choice 
                 organizations, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            January 30, 2001

Mr. Israel (for himself and Mr. Grucci) introduced the following bill; 
which was referred to the Committee on Ways and Means, and in addition 
      to the Committee on Energy and 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 title XVIII of the Social Security Act to provide incentive 
   payments for multi-year contracts entered into by Medicare+Choice 
                 organizations, 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.

    This Act may be cited as the ``Seniors' Health Care Bill of Rights 
of 2001''.

SEC. 2. INCENTIVE PAYMENTS FOR MULTI-YEAR CONTRACTS FOR MEDICARE+CHOICE 
              ORGANIZATIONS.

    (a) Incentive Payments for Multi-Year Contracts With 
Medicare+Choice Organizations.--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 Multi-Year Medicare+Choice Coordinated 
Care Plan Contracts.--
            ``(1) In general.--In the case of a Medicare+Choice 
        organization that enters into a contract with the Secretary 
        under section 1857 to offer a Medicare+Choice plan for a period 
        of 3 years, the amount of the monthly payment otherwise made to 
        the organization for the plan under this section (taking into 
        account, if applicable, subsection (i)), shall be increased by 
        5 percent for each year of the contract period.
            ``(2) Penalty for contract termination.--In the case of a 
        Medicare+Choice organization that has entered into a contract 
        described in paragraph (1) that terminates such contract before 
        the end of the 3-year contract period, the Medicare+Choice 
        organization shall pay to the Secretary an amount equal to 
        twice the aggregate amount of the increased payments made to 
        the organization by reason of paragraph (1). Such moneys shall 
        be deposited in the Federal Hospital Insurance Trust Fund and 
        the Federal Supplementary Medical Insurance Trust Fund in such 
        proportion as the Secretary determines appropriate.''.
    (b) Disqualification From FEHBP Participation for Contract 
Termination in Middle of Contract Term.--Section 1857(g)(3) of such Act 
(42 U.S.C. 1395w-27(g)(3)), as added by section 623(a) of the Medicare, 
Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000, is 
amended by adding at the end the following:
                    ``(E) Disqualification from participation (or 
                continued participation) in the Federal employees' 
                health benefits program, under chapter 89 of title 5, 
                United States Code, where the finding under subsection 
                (c)(2)(A) is based on the organization's termination of 
                its contract under this section other than at the end 
                of a term under subsection (a).''.
    (c) No New Enrollments In Plan After Organization Provides Notice 
of Plan Termination.--Section 1851(e) of such Act (42 U.S.C. 1395w-
21(e)) is amended--
            (1) in paragraph (2), by striking ``paragraph (5)'' and 
        inserting ``paragraphs (5) and (7)''; and
            (2) by adding at the end the following new paragraph:
            ``(7) No new enrollments in a plan after notice of plan 
        termination provided.--An election of coverage under a 
        Medicare+Choice plan of an Medicare+Choice organization for an 
        area may not be made after the date that the organization 
        notifies the Secretary that the organization intends to 
        terminate the contract under this part with respect to the plan 
        and area at the end of the term then current.''.
    (d) Deadline for Mailing Notice of Plan Termination.--Section 
1857(d)(3) of such Act (42 U.S.C. 1395w-27(d)(3)) is amended by adding 
at the end the following: ``The organization shall mail such notice to 
each such individual by not later than 30 days after the organization 
notifies the Secretary that the organization intends to terminate the 
contract under this part with respect to the plan and area.''.
    (e) Effective Dates.--(1) The amendment made by subsection (a) 
shall apply to terms of contracts that begin after the date of the 
enactment of this Act.
    (2) The amendments made by subsections (b) and (d) shall apply to 
terminations occurring after the date of the enactment of this Act.
    (3) The amendments made by subsection (c) shall apply to elections 
of enrollment occurring after the date of the enactment of this Act.
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