[Congressional Record Volume 162, Number 33 (Tuesday, March 1, 2016)]
[Senate]
[Pages S1144-S1146]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 3361. Mr. CARDIN (for himself and Mr. Heller) submitted an 
amendment intended to be proposed by him to the bill S. 524, to 
authorize the Attorney General to award grants to address the national 
epidemics of prescription opioid abuse and heroin use; which was 
ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

     SEC. __. MEDICARE PAYMENT FOR THERAPY SERVICES.

       (a) Repeal of Therapy Cap and 1-year Extension of Threshold 
     for Manual Medical Review.--Section 1833(g) of the Social 
     Security Act (42 U.S.C. 1395l(g)) is amended--
       (1) in paragraph (4)--
       (A) by striking ``This subsection'' and inserting ``Except 
     as provided in paragraph (5)(C)(iii), this subsection''; and
       (B) by inserting the following before the period at the 
     end: ``or with respect to services furnished on or after the 
     date of enactment of subsection (aa)''; and
       (2) in paragraph (5)--
       (A) in subparagraph (A), in the first sentence, by striking 
     ``December 31, 2017'' and inserting ``the date of enactment 
     of the Comprehensive Addiction and Recovery Act of 2016''; 
     and
       (B) in subparagraph (C), by adding at the end the following 
     new clause:

[[Page S1145]]

       ``(iii) Beginning on the date of enactment of subsection 
     (aa) and ending on the day before the date of the 
     implementation of such subsection, the manual medical review 
     process described in clause (i), subject to subparagraph (E), 
     shall apply with respect to expenses incurred in a year for 
     services described in paragraphs (1) and (3) (including 
     services described in subsection (a)(8)(B)) that exceed the 
     threshold described in clause (ii) for the year.''; and
       (3) in paragraph (6)(A)--
       (A) by striking ``December 31, 2017'' and inserting ``the 
     date of enactment of the Comprehensive Addiction and Recovery 
     Act of 2016''; and
       (B) by striking ``2012 through 2017'' and inserting ``the 
     period beginning on January 1, 2012, and ending on such date 
     of enactment''.
       (b) Medical Review of Outpatient Therapy Services.--
       (1) Medical review of outpatient therapy services.--Section 
     1833 of the Social Security Act (42 U.S.C. 1395l) is amended 
     by adding at the end the following new subsection:
       ``(aa) Medical Review of Outpatient Therapy Services.--
       ``(1) In general.--
       ``(A) Process for medical review.--The Secretary shall 
     implement a process for the medical review (as described in 
     paragraph (2)) of outpatient therapy services (as defined in 
     paragraph (10)) and, subject to paragraph (12), apply such 
     process to such services furnished on or after the date that 
     is 12 months after the date of enactment of this subsection, 
     focusing on services identified under subparagraph (B).
       ``(B) Identification of services for review.--Under the 
     process, the Secretary shall identify services for medical 
     review, using such factors as the Secretary determines 
     appropriate, which may include the following:
       ``(i) Services furnished by a therapy provider (as defined 
     in paragraph (10)) who, in a prior period, has had a high 
     claims denial percentage or is less compliant with other 
     applicable requirements under this title.
       ``(ii) Services furnished by a therapy provider whose 
     pattern of billing is aberrant compared to peers or otherwise 
     has questionable billing practices, such as billing medically 
     unlikely units of services in a day.
       ``(iii) Services furnished by a therapy provider that is 
     newly enrolled under this title or has not previously 
     furnished therapy services under this part.
       ``(iv) Services furnished to treat a type of medical 
     condition.
       ``(v) Services identified by use of the standardized data 
     elements required to be reported under section 1834(t).
       ``(vi) Services furnished by a therapy provider who is part 
     of a group that includes a therapy provider identified by 
     factors described in this subparagraph.
       ``(vii) Other services as determined appropriate by the 
     Secretary.
       ``(2) Medical review.--
       ``(A) Prior authorization medical review.--
       ``(i) In general.--Subject to the succeeding provisions of 
     this subparagraph, the Secretary shall use prior 
     authorization medical review for outpatient therapy services 
     furnished to an individual above one or more thresholds 
     established by the Secretary, such as a dollar threshold or a 
     threshold based on other factors.
       ``(ii) Ending application of prior authorization for a 
     therapy provider.--The Secretary shall end the application of 
     prior authorization medical review to outpatient therapy 
     services furnished by a therapy provider if the Secretary 
     determines that the provider has a low denial rate under such 
     prior authorization. The Secretary may subsequently reapply 
     prior authorization medical review to such therapy provider 
     if the Secretary determines it to be appropriate.
       ``(iii) Prior authorization of multiple services.--The 
     Secretary shall, where practicable, provide for prior 
     authorization medical review for multiple services at a 
     single time, such as services in a therapy plan of care 
     described in section 1861(p)(2).
       ``(B) Other types of medical review.--The Secretary may use 
     pre-payment review or post-payment review for services 
     identified under paragraph (1)(B) that are not subject to 
     prior authorization medical review under subparagraph (A).
       ``(C) Relationship to law enforcement activities.--The 
     Secretary may determine that medical review under this 
     subsection does not apply in the case where potential fraud 
     may be involved.
       ``(3) Review contractors.--The Secretary shall conduct 
     prior authorization medical review of outpatient therapy 
     services under this subsection using medicare administrative 
     contractors (as described in section 1874A) or other review 
     contractors (other than contractors under section 1893(h) or 
     other contractors paid on a contingent basis).
       ``(4) No payment without prior authorization.--With respect 
     to an outpatient therapy service for which prior 
     authorization medical review under this subsection applies, 
     the following shall apply:
       ``(A) Prior authorization determination.--The Secretary 
     shall make a determination, prior to the service being 
     furnished, of whether the service would or would not meet the 
     applicable requirements of section 1862(a)(1)(A).
       ``(B) Denial of payment.--Subject to paragraph (6), no 
     payment shall be made under this part for the service unless 
     the Secretary determines pursuant to subparagraph (A) that 
     the service would meet the applicable requirements of such 
     section.
       ``(5) Submission of information.--A therapy provider may 
     submit the information necessary for medical review by fax, 
     by mail, or by electronic means. The Secretary shall make 
     available the electronic means described in the preceding 
     sentence as soon as practicable, but not later than 24 months 
     after the date of enactment of this subsection.
       ``(6) Timeliness.--If the Secretary does not make a prior 
     authorization determination under paragraph (4)(A) within 10 
     business days of the date of the Secretary's receipt of 
     medical documentation needed to make such determination, 
     paragraph (4)(B) shall not apply.
       ``(7) Construction.--With respect to an outpatient therapy 
     service that has been affirmed by medical review under this 
     subsection, nothing in this subsection shall be construed to 
     preclude the subsequent denial of a claim for such service 
     that does not meet other applicable requirements under this 
     Act or any other provision of law.
       ``(8) Beneficiary protections.--In the case where payment 
     may not be made as a result of application of medical review 
     under this subsection, section 1879 shall apply in the same 
     manner as such section applies to a denial that is made by 
     reason of section 1862(a)(1).
       ``(9) Implementation.--
       ``(A) Authority.--The Secretary may implement the 
     provisions of this subsection by interim final rule with 
     comment period.
       ``(B) Administration.--Chapter 35 of title 44, United 
     States Code, shall not apply to medical review under this 
     subsection.
       ``(C) Limitation.--There shall be no administrative or 
     judicial review under section 1869, section 1878, or 
     otherwise of the identification of services for medical 
     review or the process for medical review under this 
     subsection.
       ``(10) Definitions.--For purposes of this subsection:
       ``(A) Outpatient therapy services.--The term `outpatient 
     therapy services' means the following services for which 
     payment is made under section 1848, 1834(g), or 1834(k):
       ``(i) Physical therapy services of the type described in 
     section 1861(p).
       ``(ii) Speech-language pathology services of the type 
     described in such section though the application of section 
     1861(ll)(2).
       ``(iii) Occupational therapy services of the type described 
     in section 1861(p) through the operation of section 1861(g).
       ``(B) Therapy provider.--The term `therapy provider' means 
     a provider of services (as defined in section 1861(u)) or a 
     supplier (as defined in section 1861(d)) who submits a claim 
     for outpatient therapy services.
       ``(11) Funding.--For purposes of implementing this 
     subsection, the Secretary shall provide for the transfer, 
     from the Federal Supplementary Medical Insurance Trust Fund 
     under section 1841, of $35,000,000 to the Centers for 
     Medicare & Medicaid Services Program Management Account for 
     each fiscal year (beginning with fiscal year 2016). Amounts 
     transferred under this paragraph shall remain available until 
     expended.
       ``(12) Scaling back.--
       ``(A) Periodic determinations.--Beginning with 2020, and 
     every two years thereafter, the Secretary shall--
       ``(i) make a determination of the improper payment rate for 
     outpatient therapy services for a 12-month period; and
       ``(ii) make such determination publicly available.
       ``(B) Scaling back.--If the improper payment rate for 
     outpatient therapy services determined for a 12-month period 
     under subparagraph (A) is 50 percent or less of the Medicare 
     fee-for-service improper payment rate for such period, the 
     Secretary shall--
       ``(i) reduce the amount and extent of medical review 
     conducted for a prospective year under the process 
     established in this subsection; and
       ``(ii) return an appropriate portion of the funding 
     provided for such year under paragraph (11).''.
       (2) GAO study and report.--
       (A) Study.--The Comptroller General of the United States 
     shall conduct a study on the effectiveness of medical review 
     of outpatient therapy services under section 1833(aa) of the 
     Social Security Act, as added by paragraph (1). Such study 
     shall include an analysis of--
       (i) aggregate data on--

       (I) the number of individuals, therapy providers, and 
     claims subject to such review; and
       (II) the number of reviews conducted under such section; 
     and

       (ii) the outcomes of such reviews.
       (B) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Comptroller General shall submit 
     to Congress a report containing the results of the study 
     under subparagraph (A), together with recommendations for 
     such legislation and administrative action as the Comptroller 
     General determines appropriate.
       (c) Collection of Standardized Data Elements for Outpatient 
     Therapy Services.--
       (1) Collection of standardized data elements for outpatient 
     therapy services.--Section 1834 of the Social Security Act 
     (42 U.S.C. 1395m) is amended by adding at the end the 
     following new subsection:
       ``(t) Collection of Standardized Data Elements for 
     Outpatient Therapy Services.--

[[Page S1146]]

       ``(1) Standardized data elements.--
       ``(A) In general.--Not later than 6 months after the date 
     of enactment of this subsection, the Secretary shall post on 
     the Internet website of the Centers for Medicare & Medicaid 
     Services a draft list of standardized data elements for 
     individuals receiving outpatient therapy services.
       ``(B) Categories.--
       ``(i) In general.--Such standardized data elements shall 
     include information with respect to the following categories, 
     as determined appropriate by the Secretary:

       ``(I) Functional status.
       ``(II) Demographic information.
       ``(III) Diagnosis.
       ``(IV) Severity.
       ``(V) Affected body structures and functions.
       ``(VI) Limitations with activities of daily living and 
     participation.
       ``(VII) Other categories determined to be appropriate by 
     the Secretary.

       ``(ii) Alignment with categories for reporting of 
     assessment data under impact.--The Secretary shall, as 
     appropriate, align the functional status category under 
     subclause (I) of clause (i) and the other categories under 
     subclauses (II) through (VII) of such clause with the 
     categories described in clauses (i) through (vi) of section 
     1899B(b)(1)(B).
       ``(C) Solicitation of input.--The Secretary shall accept 
     input from stakeholders through the date that is 60 days 
     after the date the Secretary posts the draft list of 
     standardized data elements pursuant to subparagraph (A). In 
     seeking such input, the Secretary shall use one or more 
     mechanisms to solicit input from stakeholders that may 
     include use of open door forums, town hall meetings, requests 
     for information, or other mechanisms determined appropriate 
     by the Secretary.
       ``(D) Operational list of standardized data elements.--Not 
     later than 120 days after the end of the period for accepting 
     input described in subparagraph (C), the Secretary, taking 
     into account such input, shall post on the Internet website 
     of the Centers for Medicare & Medicaid Services an 
     operational list of standardized data elements.
       ``(E) Subsequent revisions.--Subsequent revisions to the 
     operational list of standardized data elements shall be made 
     through rulemaking. Such revisions may be based on experience 
     and input from stakeholders.
       ``(2) System to report standardized data elements.--
       ``(A) In general.--Not later than 18 months after the date 
     the Secretary posts the operational list of standardized data 
     elements pursuant to paragraph (1)(D), the Secretary shall 
     develop and implement an electronic system (which may be a 
     web portal) for therapy providers to report the standardized 
     data elements for individuals with respect to outpatient 
     therapy services.
       ``(B) Stakeholder input.--The Secretary shall seek input 
     from stakeholders regarding the best way to report the 
     standardized data elements under this subsection.
       ``(3) Reporting.--
       ``(A) Frequency of reporting.--
       ``(i) In general.--Subject to clauses (ii) and (iii), the 
     Secretary shall specify the frequency of reporting 
     standardized data elements under this subsection.
       ``(ii) Stakeholder input.--The Secretary shall seek input 
     from stakeholders regarding the frequency of the reporting of 
     such data elements.
       ``(iii) Alignment with frequency for reporting of 
     assessment data under impact.--The Secretary shall, as 
     appropriate, align the frequency of the reporting of such 
     data elements with respect to an individual under this 
     subsection with the frequency in which data is required to be 
     submitted with respect to an individual under the second 
     sentence of section 1899B(b)(1)(A).
       ``(B) Reporting requirement.--Beginning on the date the 
     system to report standardized data elements under this 
     subsection is operational, no payment shall be made under 
     this part for outpatient therapy services furnished to an 
     individual unless a therapy provider reports the standardized 
     data elements for such individual.
       ``(4) Report on new payment system for outpatient therapy 
     services.--
       ``(A) In general.--Not later than 24 months after the date 
     described in paragraph (3)(B), the Secretary shall submit to 
     Congress a report on the design of a new payment system for 
     outpatient therapy services. The report shall include an 
     analysis of the standardized data elements collected and 
     other appropriate data and information.
       ``(B) Features.--Such report shall consider--
       ``(i) appropriate adjustments to payment (such as case mix 
     and outliers);
       ``(ii) payments on an episode of care basis; and
       ``(iii) reduced payment for multiple episodes.
       ``(C) Consultation.--The Secretary shall consult with 
     stakeholders regarding the design of such a new payment 
     system.
       ``(5) Implementation.--
       ``(A) Funding.--For purposes of implementing this 
     subsection, the Secretary shall provide for the transfer, 
     from the Federal Supplementary Medical Insurance Trust Fund 
     under section 1841, of $7,000,000 to the Centers for Medicare 
     & Medicaid Services Program Management Account for each of 
     fiscal years 2016 through 2020. Amounts transferred under 
     this subparagraph shall remain available until expended.
       ``(B) Administration.--Chapter 35 of title 44, United 
     States Code, shall not apply to specification of the 
     standardized data elements and implementation of the system 
     to report such standardized data elements under this 
     subsection.
       ``(C) Limitation.--There shall be no administrative or 
     judicial review under section 1869, section 1878, or 
     otherwise of the specification of standardized data elements 
     required under this subsection or the system to report such 
     standardized data elements.
       ``(D) Definition of outpatient therapy services and therapy 
     provider.--In this subsection, the terms `outpatient therapy 
     services' and `therapy provider' have the meaning given those 
     terms in section 1833(aa).''.
       (2) Sunset of current claims-based collection of therapy 
     data.--Section 3005(g)(1) of the Middle Class Tax Extension 
     and Job Creation Act of 2012 (42 U.S.C. 1395l note) is 
     amended, in the first sentence, by inserting ``and ending on 
     the date the system to report standardized data elements 
     under section 1834(t) of the Social Security Act (42 U.S.C. 
     1395m(t)) is implemented,'' after ``January 1, 2013,''.
       (d) Reporting of Certain Information.--Section 1842(t) of 
     the Social Security Act (42 U.S.C. 1395u(t)) is amended by 
     adding at the end the following new paragraph:
       ``(3) Each request for payment, or bill submitted, by a 
     therapy provider (as defined in section 1833(aa)(10)) for an 
     outpatient therapy service (as defined in such section) 
     furnished by a therapy assistant on or after January 1, 2018, 
     shall include (in a form and manner specified by the 
     Secretary) an indication that the service was furnished by a 
     therapy assistant.''.
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