To guarantee the rights of patients and doctors against Federal restrictions or delay in the provision of privately-funded health care.

Summary: Medical Rights Act of 2009 - Prohibits federal funds from being used to permit any federal officer or employee to exercise any supervision or control over: (1) the practice of medicine, the practice of other health care professions, or the manner in which health care services are provided; (2) the provision by a physician or a health care practitioner of advice to a patient about the patient's health status or recommended treatment for a condition or disease; (3) the selection, tenure, or compensation of any officer, employee, or contractor of any institution, business, nonfederal agency, or individual providing health care services; or (4) the administration or operation of any such institution, business, nonfederal agency, or individual with respect to the provision of health care services to a patient. Sets forth exceptions for the Veterans Health Administration, the Department of Defense (DOD), the United States Public Health Service, the Indian Health Service, the National Institutes of Health (NIH), and the Health Resources and Services Administration.

Prohibits federal funds from being used by any federal officer or employee to prohibit: (1) any individual from receiving health care services from any provider under terms and conditions mutually acceptable to the patient, the provider, and the patient's group health plan; or (2) any person from entering into a contract with any group health plan, health insurance issuer, or other business for the provision of, or payment to other parties for, health care services.

Sets forth provisions to prohibit specified actions to avoid the prohibitions under this Act.

Repeals Medicare provisions restricting private contracts between beneficiaries and physicians or practitioners.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medical Rights Act of 2009''.

SEC. 2. PROHIBITION ON RESTRICTIONS ON THE PRACTICE OF MEDICINE AND 
              OTHER HEALTH CARE PROFESSIONS.

    (a) In General.--Subject to subsection (b), no Federal funds shall 
be used to permit any Federal officer or employee to exercise any 
supervision or control over--
            (1) the practice of medicine, the practice of other health 
        care professions, or the manner in which health care services 
        are provided;
            (2) the provision, by a physician or a health care 
        practitioner, of advice to a patient about the patient's health 
        status or recommended treatment for a condition or disease;
            (3) the selection, tenure, or compensation of any officer, 
        employee, or contractor of any institution, business, non-
        Federal agency, or individual providing health care services; 
        or
            (4) the administration or operation of any such 
        institution, business, non-Federal agency, or individual, with 
        respect to the provision of health care services to a patient.
    (b) Preserving Certain Current Programs.--Subsection (a) shall not 
prohibit the Federal government from operating, managing, supervising 
employees of, or defining the scope of services provided by Federal 
entities when directly providing health care services and products, 
only with respect to the following:
            (1) The Veterans Health Administration--
                    (A) in the case of directly providing health care 
                services through its own facilities and by its own 
                employees; or
                    (B) in the case of coordinating health care 
                services not described in subparagraph (A) and paid for 
                with Federal funds under programs operated by the 
                Veterans Health Administration.
            (2) The Department of Defense--
                    (A) in the case of directly providing health care 
                services through military treatment facilities;
                    (B) in the case of paying for health care services 
                for active-duty members of the armed forces or members 
                of the reserve component when called to active duty;
                    (C) in the case of directly providing health care 
                services to the public in the event of emergency or 
                under other lawful circumstances; or
                    (D) when necessary to determine whether health care 
                services provided to those who are not active-duty 
                members of the Armed Forces are eligible for payment 
                with Federal funds or to coordinate health care 
                services for patients who are served by both non-
                Federal entities and military treatment facilities.
            (3) The United States Public Health Service--
                    (A) in the case of providing health care services 
                through its own facilities or by its officers or 
                civilian Federal employees;
                    (B) in the case of providing or paying for health 
                care services to active-duty members of uniformed 
                services or to reserve members of such services when 
                called to active duty; or
                    (C) when necessary to determine whether health care 
                services provided to those who are not active-duty 
                members of uniformed services are eligible for payment 
                with Federal funds or to coordinate health care 
                services for patients who are served by both non-
                Federal entities and Public Health Service treatment 
                facilities
            (4) The Indian Health Service--
                    (A) in the case of directly providing health care 
                services through its own facilities or Federal 
                employees; or
                    (B) in the case of providing care by non-Federal 
                entities, to the extent necessary to administer 
                contracts and grants pursuant to the Indian Health Care 
                Improvement Act;
            (5) The National Institutes of Health--
                    (A) in the case of providing direct patient care 
                incident to medical research; or
                    (B) in the case of administering grants for medical 
                research, but in no case shall a non-Federal entity be 
                required or requested to waive the protections of 
                subsection (a) for health care services not incident to 
                medical research funded by the National Institutes of 
                Health as a condition of receiving research grant 
                funding from the National Institutes of Health.
            (6) The Health Resources and Services Administration--
                    (A) in the case of certifying federally qualified 
                health centers, as defined by section 1905(l)(2)(B) of 
                the Social Security Act (42 U.S.C. 1396d(l)(2)(B)), 
                certifying FQHC look-alike status, as defined in 
                section 413.65(n) of title 45 of the Code of Federal 
                Regulations, or providing grants under section 330 of 
                the Public Health Service Act (42 U.S.C. 254b), but 
                only to the extent necessary to determine eligibility 
                for such certification and grant funding and the 
                appropriate amounts of such funding; or
                    (B) in the case of operating the nation's human 
                organ, bone marrow, and umbilical cord blood donation 
                and transplantation systems, as and to the extent 
                authorized by law and necessary for the operation of 
                those programs.

SEC. 3. RIGHT TO CONTRACT FOR HEALTH CARE SERVICES AND HEALTH 
              INSURANCE.

    (a) Receipt of Health Services.--No Federal funds shall be used by 
any Federal officer or employee to prohibit any individual from 
receiving health care services from any provider of health care 
services--
            (1) under terms and conditions mutually acceptable to the 
        patient and the provider; or
            (2) under terms and conditions mutually acceptable to the 
        patient, the provider, and any group health plan or health 
        insurance issuer that is obligated to provide health insurance 
        coverage to the patient or any other entity indemnifying the 
        patient's consumption of health care services;
provided that any such agreement shall be subject to the requirements 
of section 1802(b) of the Social Security Act (42 U.S.C. 1395a(b)), as 
amended by section 6.
    (b) Health Insurance Coverage.--No Federal funds shall be used by 
any Federal officer or employee to prohibit any person from entering 
into a contract with any group health plan, health insurance issuer, or 
other business, for the provision of, or payment to other parties for, 
health care services to be determined and provided subsequent to the 
effective date of the contract, according to terms, conditions, and 
procedures specified in such contract.
    (c) Eligibility for Federal Benefits.--No person's eligibility for 
benefits under any program operated by or funded wholly or partly by 
the Federal Government shall be adversely affected as a result of 
having received services in a manner described by subsection (a) or 
having entered into a contract described in subsection (b).
    (d) Federal Program Participation.--No provider of health care 
services--
            (1) shall be denied participation in a Federal program for 
        which it would otherwise be eligible as a result of having 
        provided services in a manner described in subsection (a); or
            (2) shall be denied payment for services otherwise eligible 
        for payment under a Federal program as a result of having 
        provided services in a manner described in subsection (a), 
        except to the extent required by subsection (a)(1).

SEC. 4. PROHIBITION ON MANDATING STATE RESTRICTIONS.

    (a) In General.--No Federal funds shall be used by any Federal 
officer or employee to induce or encourage any State or other 
jurisdiction of the United States to enact any restriction or 
prohibition prohibited to the Federal Government by this Act.
    (b) Protecting State Eligibility for Federal Funds.--No State's 
eligibility for participation in any program operated by or funded 
wholly or partly by the Federal Government, or for receiving funds from 
the Federal Government shall be conditioned on that State enacting any 
restriction or prohibition prohibited to the Federal Government by this 
Act, nor adversely affected by that State's failure to enact any 
restriction or prohibition prohibited to the Federal Government by this 
Act.

SEC. 5. CLARIFICATION.

    Nothing in this Act shall be construed to permit the expenditure of 
funds otherwise prohibited by law.

SEC. 6. CONFORMING AMENDMENT.

    Section 1802(b)(3) of the Social Security Act (42 U.S.C. 
1395(2)(B)) is hereby repealed.

SEC. 7. DEFINITIONS.

    For purposes of this Act:
            (1) Health care services.--The term ``health care 
        services'' means any lawful service intended to diagnose, cure, 
        prevent, or mitigate the adverse effects of any disease, 
        injury, infirmity, or physical or mental disability, including 
        the provision of any lawful product the use of which is so 
        intended.
            (2) Physician.--The term ``physician'' means--
                    (A) a doctor of medicine or osteopathy legally 
                authorized to practice medicine and surgery by the 
                State in which he performs such practice and surgery;
                    (B) a doctor of dental surgery or of dental 
                medicine who is legally authorized to practice 
                dentistry by the State in which he performs such 
                function and who is acting within the scope of his 
                license when he performs such functions;
                    (C) a doctor of podiatric medicine but only with 
                respect to functions which he is legally authorized to 
                perform as such by the State in which he performs them;
                    (D) a doctor of optometry with respect to the 
                provision of items or services which he is legally 
                authorized to perform as a doctor of optometry by the 
                State in which he performs them; or
                    (E) a chiropractor who is licensed as such by the 
                State (or in a State which does not license 
                chiropractors as such, is legally authorized to perform 
                the services of a chiropractor in the jurisdiction in 
                which he performs such services), but only with respect 
                to treatment which he is legally authorized to perform 
                by the State or jurisdiction in which such treatment is 
                provided.
            (3) Practice of medicine.--The term ``practice of 
        medicine'' means--
                    (A) health care services that are performed by 
                physicians; and
                    (B) services and supplies furnished as an incident 
                to a physician's professional service.
            (4) Health care practitioner.--The term ``health care 
        practitioner'' means a physician assistant, registered nurse, 
        nurse practitioner, psychologist, clinical social worker, 
        midwife, or other individual (other than a physician) licensed 
        or legally authorized to perform health care services in the 
        State in which the individual performs such services.
            (5) Practice of other health care professions.--The term 
        ``practice of other health care professions'' means--
                    (A) health care services performed by a health care 
                practitioner; and
                    (B) services and supplies furnished as an incident 
                to a health care practitioner's professional service.
            (6) Group health plan.--The term ``group health plan'' has 
        the meaning given such term in section 733(a)(1) of the 
        Employee Retirement Income Security Act of 1974 (29 U.S.C. 
        1191b(a)(1)).
            (7) Health insurance issuer.--The term ``health insurance 
        issuer'' has the meaning given such term in section 733(b)(2) 
        of the Employee Retirement Income Security Act of 1974 (29 
        U.S.C. 1191b(b)(2)).
            (8) Business.--The term ``business'' means any sole 
        proprietorship, partnership, for-profit corporation, or not-
        for-profit corporation.
            (9) State.--The term ``State'' means any of the United 
        States, the Commonwealth of Puerto Rico, the Commonwealth of 
        the Northern Mariana Islands, the United States Virgin Islands, 
        Guam, American Samoa, or the District of Columbia.

SEC. 8. EFFECTIVE DATE.

    The provisions of this Act shall apply to Federal entities, 
including employees and officials of such entities, beginning on 
January 1, 2009.