To amend title XVIII of the Social Security Act to provide for coverage under the Medicare Program of hearing aids and related hearing services.

Summary: Medicare Aural Rehabilitation and Hearing Aid Coverage Act of 2001 - Amends title XVIII (Medicare) of the Social Security Act (SSA), as amended by the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000, to provide for coverage of hearing aids as durable medical equipment and aural rehabilitation and other related hearing services.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Aural Rehabiliation and 
Hearing Aid Coverage Act of 2001''.

SEC. 2. COVERAGE OF HEARING REHABILITATION.

    (a) Coverage of Aural Rehabilitation Services.--Section 1861(s)(2) 
of the Social Security Act (42 U.S.C. 1395x(s)(2)), as amended by 
sections 102(a) and 105(a) of the Medicare, Medicaid, and SCHIP 
Benefits Improvement and Protection Act of 2000 (as enacted into law by 
section 1(a)(6) of Public Law 106-554), is amended--
            (1) in subparagraph (U), by striking ``and'' at the end;
            (2) in subparagraph (V) by inserting ``and'' at the end; 
        and
            (3) by adding at the end the following new subparagraph:
            ``(W) aural rehabiliation services (as described in 
        subsection (ww)(2));''.
    (b) Coverage of Hearing Aids as Durable Medical Equipment.--Section 
1861(s)(8) of the Social Security Act (42 U.S.C. 1395x(s)(8)) is 
amended by inserting ``and hearing aids (as defined in subsection 
(ww)(3))'' before the period.
    (c) Definition.--Section 1861 of the Social Security Act (42 U.S.C. 
1395x), as amended by sections 102(b) and 105(b) of the Medicare, 
Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (as 
enacted into law by section 1(a)(6) of Public Law 106-554), is amended 
by adding at the end the following new subsection:

                        ``Hearing Rehabiliation

    ``(ww)(1) The term `hearing rehabilitation' means--
            ``(A) aural rehabilitation services (described in paragraph 
        (2)) which meet such requirements as the Secretary prescribes 
        and which are furnished by a physician or qualified 
        audiologist, who is legally authorized to furnish such services 
        under the State law (or the State regulatory mechanism provided 
        by State law) of the State in which the services are furnished, 
        and
            ``(B) hearing aids (as defined in paragraph (3)).
    ``(2) The services described in this subparagraph include--
            ``(A) aural rehabilitation services;
            ``(B) in the case of an individual who has a hearing loss 
        (as defined by the Secretary), a comprehensive audiologic 
        assessment to determine if a hearing aid is appropriate and to 
        determine the need for other diagnostic medical or audiologic 
        testing; and
            ``(C) a threshold test to determine audio acuity.
    ``(3)(A) The term `hearing aid' means a hearing aid described in 
subparagraph (B), including the services described in subparagraph (C) 
furnished by a physician or qualified audiologist, who is legally 
authorized to supply such hearing aid under the State law (or State 
regulatory mechanism provided by State law) of the State in which the 
hearing aid is supplied, to an individual described in subparagraph 
(D).
    ``(B) A hearing aid described in this subparagraph is any wearable 
instrument or device for, offered for the purpose of, or represented as 
aiding individuals with, or compensating for, hearing loss that meets 
requirements of the Food and Drug Administration for marketing.
    ``(C) The services described in this subparagraph include--
            ``(i) audiology services (as defined in subsection 
        (ll)(2));
            ``(ii) a hearing aid assessment to determine the 
        appropriate hearing aid for the individual;
            ``(iii) procurement of an appropriate hearing aid;
            ``(iv) initial fitting and adjustment of the hearing aid;
            ``(v) appropriate instruction on the use of the hearing 
        aid;
            ``(vi) periodic refittings and adjustments; and
            ``(vii) rehabilitation, including counseling on hearing 
        loss, speech reading, and auditory training.
    ``(D) The individuals described in this subparagraph--
            ``(i) have been determined (as a result of a comprehensive 
        audiologic assessment) to have a hearing loss which can be 
        appropriately treated with a hearing aid;
            ``(ii) have not been supplied with one monaural hearing aid 
        or two binaural hearing aids during the preceding 3 years; and
            ``(iii) have had a comprehensive audiologic assessment 
        which indicates that the hearing of such individual has 
        deteriorated since such individual was last supplied with a 
        hearing aid such that a hearing aid of a different type is 
        appropriate for such individual.''.
    (d) Inclusion of Audiology Rehabilitation Services.--Section 
1861(ll)(2) of the Social Security Act (42 U.S.C. 1395x(ll)(2)) is 
amended by inserting ``and rehabilitation'' after ``balance 
assessment''.
    (e) Exception to Exclusions from Coverage.--Section 1862(a) of the 
Social Security Act (42 U.S.C. 1395y(a)(1)) is amended--
            (1) in paragraph (1) by adding at the end the following new 
        subparagraph:
            ``(J) in the case of hearing rehabilitation, which is 
        furnished or supplied more frequently than is provided under 
        section 1861(ww);''; and
            (2) in paragraph (7) by striking ``hearing aids or 
        examinations therefor''.
    (f) Effective Date.--The amendments made by this section shall take 
effect on the date of the enactment of this Act, and shall apply to 
items and services furnished on or after the date the Secretary 
publishes a final regulation to carry out the provisions of this Act, 
but in no case later than January 1, 2003.