[Congressional Record Volume 162, Number 104 (Tuesday, June 28, 2016)]
[Senate]
[Pages S4662-S4665]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

  SA 4883. Mr. MENENDEZ (for himself and Ms. Warren) submitted an 
amendment intended to be proposed by him to the bill S. 2328, to 
reauthorize and amend the National Sea Grant College Program Act, and 
for other purposes; which was ordered to lie on the table; as follows:

       At the appropriate place, insert the following:

                    DIVISION A--PUERTO RICO RECOVERY

     SECTION 1. SHORT TITLE.

       This division may be cited as ``Puerto Rico Recovery Act of 
     2016''.

     SEC. 2. TABLE OF CONTENTS.

       The table of contents for this division is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                        TITLE I--TAX PROVISIONS

Sec. 101. Puerto Rico residents eligible for earned income tax credit.
Sec. 102. Equitable treatment for residents of Puerto Rico with respect 
              to the refundable portion of the child tax credit.

                      TITLE II--HEALTH CARE PARITY

                          Subtitle A--Medicaid

Sec. 201. Elimination of general Medicaid funding limitations (``cap'') 
              for territories.
Sec. 202. Elimination of specific Federal medical assistance percentage 
              (FMAP) limitation for territories.
Sec. 203. Application of Medicaid waiver authority to all of the 
              territories.
Sec. 204. Application of 100 percent Federal poverty line (FPL) 
              limitation to territories.
Sec. 205. Permitting Medicaid DSH allotments for territories.

                          Subtitle B--Medicare

Sec. 211. Calculation of Medicare DSH payments for IPPS hospitals in 
              Puerto Rico.
Sec. 212. Application of part B deemed enrollment process to residents 
              of Puerto Rico; special enrollment period and limit on 
              late enrollment penalties.

[[Page S4663]]

Sec. 213. Puerto Rico practice expense GPCI improvement.
Sec. 214. Adjustment in benchmark for low base payment counties in 
              Puerto Rico.
Sec. 215. Eliminating exclusion of part D eligible individuals residing 
              in territories from eligibility for premium and cost-
              sharing subsidies.
Sec. 216. Report on treatment of territories under Medicare part D.

                       Subtitle C--Miscellaneous

Sec. 221. Report on exclusion of territories from Exchanges.

                        TITLE I--TAX PROVISIONS

     SEC. 101. PUERTO RICO RESIDENTS ELIGIBLE FOR EARNED INCOME 
                   TAX CREDIT.

       (a) In General.--Section 32 of the Internal Revenue Code of 
     1986 is amended by adding at the end the following new 
     subsection:
       ``(n) Residents of Puerto Rico.--
       ``(1) In general.--In the case of residents of Puerto 
     Rico--
       ``(A) the United States shall be treated as including 
     Puerto Rico for purposes of subsections (c)(1)(A)(ii)(I) and 
     (c)(3)(C),
       ``(B) subsection (c)(1)(D) shall not apply to nonresident 
     alien individuals who are residents of Puerto Rico, and
       ``(C) adjusted gross income and gross income shall be 
     computed without regard to section 933 for purposes of 
     subsections (a)(2)(B) and (c)(2)(A)(i).
       ``(2) Limitation.--The credit allowed under this section by 
     reason of this subsection for any taxable year shall not 
     exceed the amount, determined under regulations or other 
     guidance promulgated by the Secretary, that a similarly 
     situated taxpayer would receive if residing in a State.''.
       (b) Child Tax Credit Not Reduced.--Subclause (II) of 
     section 24(d)(1)(B)(ii) of such Code is amended by inserting 
     before the period ``(determined without regard to section 
     32(n) in the case of residents of Puerto Rico)''.
       (c) Effective Date.--The amendment made shall apply to 
     taxable years beginning after December 31, 2015.

     SEC. 102. EQUITABLE TREATMENT FOR RESIDENTS OF PUERTO RICO 
                   WITH RESPECT TO THE REFUNDABLE PORTION OF THE 
                   CHILD TAX CREDIT.

       (a) In General.--Section 24(d)(1) of the Internal Revenue 
     Code of 1986 is amended by inserting ``or section 933'' after 
     ``section 112''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall apply to taxable years beginning after December 31, 
     2015.

                      TITLE II--HEALTH CARE PARITY

                          Subtitle A--Medicaid

     SEC. 201. ELIMINATION OF GENERAL MEDICAID FUNDING LIMITATIONS 
                   (``CAP'') FOR TERRITORIES.

       (a) In General.--Section 1108 of the Social Security Act 
     (42 U.S.C. 1308) is amended--
       (1) in subsection (f), in the matter before paragraph (1), 
     by striking ``subsection (g)'' and inserting ``subsections 
     (g) and (h)'';
       (2) in subsection (g)(2), in the matter before subparagraph 
     (A), by inserting ``and subsection (h)'' after ``paragraphs 
     (3) and (5)''; and
       (3) by adding at the end the following new subsection:
       ``(h) Sunset of Medicaid Funding Limitations for Puerto 
     Rico, the Virgin Islands of the United States, Guam, the 
     Northern Mariana Islands, and American Samoa.--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 
     2017.''.
       (b) Conforming Amendments.--
       (1) Section 1902(j) of the Social Security Act (42 U.S.C. 
     1396a(j)) is amended by striking ``, the limitation in 
     section 1108(f),''.
       (2) Section 1903(u) of the Social Security Act (42 U.S.C. 
     1396b(u)) is amended by striking paragraph (4).
       (3) Section 1323(c)(1) of the Patient Protection and 
     Affordable Care Act (42 U.S.C. 18043(c)(1)) is amended by 
     striking ``2019'' and inserting ``2016''.
       (c) Effective Date.--The amendments made by this section 
     shall apply beginning with fiscal year 2017.

     SEC. 202. ELIMINATION OF SPECIFIC FEDERAL MEDICAL ASSISTANCE 
                   PERCENTAGE (FMAP) LIMITATION FOR TERRITORIES.

       Section 1905 of the Social Security Act (42 U.S.C. 1396d) 
     is amended--
       (1) in subsection (b)(2), by inserting ``for fiscal years 
     before fiscal year 2017'' after ``American Samoa''; and
       (2) in subsection (y)(1), in the matter preceding 
     subparagraph (A)--
       (A) by inserting ``, for fiscal years before fiscal year 
     2017,'' before ``is one of the''; and
       (B) by inserting ``and, for fiscal year 2017 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,'' after ``the District of Columbia''.

     SEC. 203. APPLICATION OF MEDICAID WAIVER AUTHORITY TO ALL OF 
                   THE TERRITORIES.

       (a) In General.--Section 1902(j) of the Social Security Act 
     (42 U.S.C. 1396a(j)) is amended--
       (1) by striking ``American Samoa and the Northern Mariana 
     Islands'' and inserting ``Puerto Rico, the Virgin Islands of 
     the United States, Guam, the Northern Mariana Islands, and 
     American Samoa'';
       (2) by striking ``American Samoa or the Northern Mariana 
     Islands'' and inserting ``Puerto Rico, the Virgin Islands of 
     the United States, Guam, the Northern Mariana Islands, or 
     American Samoa'';
       (3) by inserting ``(1)'' after ``(j)'';
       (4) by inserting ``except as otherwise provided in this 
     subsection,'' after ``Notwithstanding any other requirement 
     of this title''; and
       (5) by adding at the end the following:
       ``(2) 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.''.
       (b) Effective Date.--The amendments made by this section 
     shall apply beginning October 1, 2016.

     SEC. 204. APPLICATION OF 100 PERCENT FEDERAL POVERTY LINE 
                   (FPL) LIMITATION TO TERRITORIES.

       (a) In General.--Section 1902 of the Social Security Act 
     (42 U.S.C. 1396a) is amended--
       (1) in subsection (a)(10)(A)(i)(VIII), by inserting ``(or, 
     subject to subsection (j), 100 percent in the case of Puerto 
     Rico, the Virgin Islands of the United States, Guam, the 
     Northern Mariana Islands, and American Samoa)'' after ``133 
     percent''; and
       (2) in subsection (j), as amended by section 203, by adding 
     at the end the following new paragraph:
       ``(3)(A) Subject to subparagraph (B), Federal financial 
     participation shall not be available to Puerto Rico, the 
     Virgin Islands of the United States, Guam, the Northern 
     Mariana Islands, or American Samoa for medical assistance for 
     an individual whose family income exceeds 100 percent of the 
     official poverty line for a family of the size involved, 
     except in the case of individuals qualifying for medical 
     assistance under subsection (a)(10)(A)(i)(IX).
       ``(B) The Secretary may, under paragraph (1) or section 
     1115, waive the limitation under subparagraph (A) in the case 
     of a territory other than Puerto Rico. In carrying out this 
     subparagraph, the Secretary shall take into account the 
     eligibility levels established under the State plan of the 
     territory involved before the date of the enactment of this 
     paragraph.''.
       (b) Not Applying 5 Percent Disregard.--Section 
     1902(e)(14)(I) of the Social Security Act (42 U.S.C. 
     1396b(e)(14)(I)) is amended by adding at the end the 
     following:

     ``The previous sentence shall only apply to a State that is 
     one of the 50 States or the District of Columbia.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply with respect to eligibility determinations made 
     with respect to items and services furnished on or after 
     October 1, 2016.

     SEC. 205. PERMITTING MEDICAID DSH ALLOTMENTS FOR TERRITORIES.

       Section 1923(f) of the Social Security Act (42 U.S.C. 1396) 
     is amended--
       (1) in paragraph (6), by adding at the end the following 
     new subparagraph:
       ``(C) Territories.--
       ``(i) Fiscal year 2017.--For fiscal year 2017, 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.
       ``(ii) Subsequent fiscal year.--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).'';
       (2) in paragraph (7)(A), by striking clause (iv) and 
     redesignating clause (v) as clause (iv); and
       (3) in paragraph (9), by inserting before the period at the 
     end the following: ``, and includes, beginning with fiscal 
     year 2017, Puerto Rico, the Virgin Islands of the United 
     States, Guam, the Northern Mariana Islands, and American 
     Samoa''.

                          Subtitle B--Medicare

     SEC. 211. CALCULATION OF MEDICARE DSH PAYMENTS FOR IPPS 
                   HOSPITALS IN PUERTO RICO.

       Section 1886(d)(9)(D)(iii) of the Social Security Act (42 
     U.S.C. 1395ww(d)(9)(D)(iii)) is amended to read as follows:
       ``(iii) Subparagraph (F) (relating to disproportionate 
     share payments), including application of subsection (r), 
     except that for this purpose--
       ``(I) the sum described in clause (ii) of this subparagraph 
     shall be substituted for the sum referred to in paragraph 
     (5)(F)(ii)(I); and
       ``(II) for discharges occurring on or after October 1, 
     2015, 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--
       ``(aa) entitled to supplementary security income benefits 
     (excluding any State supplementation) under title XVI of this 
     Act;
       ``(bb) eligible for medical assistance under a State plan 
     under title XIX; or
       ``(cc) receiving aid or assistance under any plan of the 
     State approved under title I, X, XIV, or XVI.''.

[[Page S4664]]

  


     SEC. 212. APPLICATION OF PART B DEEMED ENROLLMENT PROCESS TO 
                   RESIDENTS OF PUERTO RICO; SPECIAL ENROLLMENT 
                   PERIOD AND LIMIT ON LATE ENROLLMENT PENALTIES.

       (a) Application of Part B Deemed Enrollment Process to 
     Residents of Puerto Rico.--Section 1837(f)(3) of the Social 
     Security Act (42 U.S.C. 1395p(f)(3)) is amended by striking 
     ``, exclusive of Puerto Rico''.
       (b) Effective Date.--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).
       (c) Transition Providing Special Enrollment Period and 
     Limit on Late Enrollment Penalties for Certain Medicare 
     Beneficiaries.--Section 1839 of the Social Security Act (42 
     U.S.C. 1395r) is amended--
       (1) in the first sentence of subsection (b), by inserting 
     ``subject to section 1839(j)(2),'' after ``subsection (i)(4) 
     or (l) of section 1837,''; and
       (2) by adding at the end the following new subsection:
       ``(j) Special Rules for Certain Residents of Puerto Rico.--
       ``(1) Special enrollment period, coverage period for 
     residents who are eligible but not enrolled.--
       ``(A) In general.--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.
       ``(B) Coverage period.--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.
       ``(C) Effective month defined.--In this section, the term 
     `effective month' means a month, not earlier than October 
     2016 and not later than January 2017, specified by the 
     Secretary.
       ``(2) Reduction in late enrollment penalties for current 
     enrollees and individuals enrolling during transition.--
       ``(A) In general.--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.
       ``(B) Application.--Subparagraph (A) shall be applied in 
     the case of a transition individual who--
       ``(i) is enrolled under this part as of the month before 
     the effective month, for premiums for months beginning with 
     such effective month; or
       ``(ii) 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.
       ``(C) Loss of reduction if individual terminates 
     enrollment.--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).
       ``(3) Transition individual defined.--In this section, the 
     term `transition individual' 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.''.

     SEC. 213. PUERTO RICO PRACTICE EXPENSE GPCI IMPROVEMENT.

       Section 1848(e)(1) of the Social Security Act (42 U.S.C. 
     1395w-4(e)(1)) is amended--
       (1) in subparagraph (A), by striking ``and (I)'' and 
     inserting ``(I), and (J)''; and
       (2) by adding at the end the following new subparagraph:
       ``(J) Floor for practice expense index for services 
     furnished in puerto rico.--
       ``(i) In general.--For purposes of payment for services 
     furnished in Puerto Rico in a year (beginning with 2016), 
     after calculating the practice expense index in subparagraph 
     (A)(i) for Puerto Rico, if such index is below the reference 
     index (as defined in clause (ii)) for the year, the Secretary 
     shall increase such index for Puerto Rico to equal the value 
     of the reference index for the year. The preceding sentence 
     shall not be applied in a budget neutral manner.
       ``(ii) Reference index defined.--In this subparagraph, the 
     term `reference index' means, with respect to a year, 0.800 
     or, if less, the lowest practice expense index value for the 
     year for any area in the 50 States or the District of 
     Columbia.''.

     SEC. 214. ADJUSTMENT IN BENCHMARK FOR LOW BASE PAYMENT 
                   COUNTIES IN PUERTO RICO.

       Section 1853(n) of the Social Security Act (42 U.S.C. 
     1395w-23(n)) is amended--
       (1) in paragraph (1), by striking ``and (5)'' and inserting 
     ``, (5), and (6)'';
       (2) in paragraph (4), by striking ``In no case'' and 
     inserting ``Subject to paragraph (6), in no case''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Special rules for blended benchmark amount for 
     territories.--
       ``(A) In general.--Subject to paragraph (2), the blended 
     benchmark amount for an area in a territory for a year 
     (beginning with 2016) 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.
       ``(B) Limitation.--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.''.

     SEC. 215. ELIMINATING EXCLUSION OF PART D ELIGIBLE 
                   INDIVIDUALS RESIDING IN TERRITORIES FROM 
                   ELIGIBILITY FOR PREMIUM AND COST-SHARING 
                   SUBSIDIES.

       (a) In General.--Section 1860D-14(a)(3) of the Social 
     Security Act (42 U.S.C. 1395w-114(a)(3)) is amended--
       (1) in subparagraph (A), in the matter preceding clause 
     (i), by striking ``subject to subparagraph (F),'';
       (2) in subparagraph (B)(v), in the matter preceding 
     subclause (I), by striking ``Subject to subparagraph (F), the 
     Secretary'' and inserting ``The Secretary'';
       (3) in subparagraph (C), by adding at the end the following 
     new sentence: ``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.''; and
       (4) by striking subparagraph (F).
       (b) Application of Medicaid Provisions.--Section 1935 of 
     the Social Security Act (42 U.S.C. 1396u-5) is amended--
       (1) in subsection (a), by striking ``subject to subsection 
     (e)'' in the matter preceding paragraph (1); and
       (2) by striking subsection (e).
       (c) Conforming Amendment.--Section 1108(f) of the Social 
     Security Act (42 U.S.C. 1308(f)) is amended by striking ``and 
     section 1935(e)(1)(B)'' in the matter preceding clause (i).
       (d) Effective Date.--The amendments made by this section 
     shall take effect on January 1, 2017.

     SEC. 216. REPORT ON TREATMENT OF TERRITORIES UNDER MEDICARE 
                   PART D.

       Paragraph (4) of section 1935(e) of the Social Security Act 
     (42 U.S.C. 1396u-5(e)) is amended to read as follows:
       ``(4) Report on application of subsection.--
       ``(A) In general.--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.
       ``(B) Information to be included in report.--Such report 
     shall include--
       ``(i) program guidance issued by the Secretary to implement 
     this subsection;
       ``(ii) 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
       ``(iii) 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.
       ``(C) Recommendations.--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:
       ``(i) Adjusting the aggregate amount specified in paragraph 
     (3)(B).
       ``(ii) 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.''.

                       Subtitle C--Miscellaneous

     SEC. 221. REPORT ON EXCLUSION OF TERRITORIES FROM EXCHANGES.

       (a) In General.--Not later than February 1, 2018, 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.
       (b) Information in Report.--The report shall include 
     information on the following:

[[Page S4665]]

       (1) An estimate of the total number of uninsured and 
     underinsured individuals residing in each territory with 
     respect to health insurance coverage.
       (2) A description of the number of health insurance issuers 
     in each territory and the health insurance plans these 
     issuers offer.
       (3) 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.
       (4) An estimate of the amount of Federal assistance 
     described in paragraph (3) that is not being made available 
     to residents of each territory.
       (5) 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.
                                 ______