SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Alaska Native and American Indian 
Direct Reimbursement Act of 1998''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) In 1988, Congress enacted section 405 of the Indian 
        Health Care Improvement Act (25 U.S.C. 1645) that established a 
        demonstration program to authorize 4 tribally-operated Indian 
        Health Service hospitals or clinics to test methods for direct 
        billing and receipt of payment for health services provided to 
        patients eligible for reimbursement under the medicare or 
        medicaid programs under titles XVIII and XIX of the Social 
        Security Act (42 U.S.C. 1395 et seq.; 1396 et seq.), and other 
        third-party payors.
            (2) The 4 participants selected by the Indian Health 
        Service for the demonstration program began the direct billing 
        and collection program in fiscal year 1989 and unanimously 
        expressed success and satisfaction with the program. Benefits 
        of the program include dramatically increased collections for 
        services provided under the medicare and medicaid programs, a 
        significant reduction in the turn-around time between billing 
        and receipt of payments for services provided to eligible 
        patients, and increased efficiency of participants being able 
        to track their own billings and collections.
            (3) The success of the demonstration program confirms that 
        the direct involvement of tribes and tribal organizations in 
        the direct billing of, and collection of payments from, the 
        medicare and medicaid programs, and other third payor 
        reimbursements, is more beneficial to Indian tribes than the 
        current system of Indian Health Service-managed collections.
            (4) Allowing tribes and tribal organizations to directly 
        manage their medicare and medicaid billings and collections, 
        rather than channeling all activities through the Indian Health 
        Service, will enable the Indian Health Service to reduce its 
        administrative costs, is consistent with the provisions of the 
        Indian Self-Determination Act, and furthers the commitment of 
        the Secretary to enable tribes and tribal organizations to 
        manage and operate their health care programs.
            (5) The demonstration program was originally to expire on 
        September 30, 1996, but was extended by Congress to September 
        30, 1998, so that the current participants would not experience 
        an interruption in the program while Congress awaited a 
        recommendation from the Secretary of Health and Human Services 
        on whether to make the program permanent.
            (6) It would be beneficial to the Indian Health Service and 
        to Indian tribes, tribal organizations, and Alaska Native 
        organizations to provide permanent status to the demonstration 
        program and to extend participation in the program to other 
        Indian tribes, tribal organizations, and Alaska Native health 
        organizations who operate a facility of the Indian Health 
        Service.

SEC. 3. DIRECT BILLING OF MEDICARE, MEDICAID, AND OTHER THIRD PARTY 
              PAYORS.

    (a) Permanent Authorization.--Section 405 of the Indian Health Care 
Improvement Act (25 U.S.C. 1645) is amended to read as follows:
    ``(a) Establishment of Direct Billing Program.--
            ``(1) In general.--The Secretary shall establish a program 
        under which Indian tribes, tribal organizations, and Alaska 
        Native health organizations that contract or compact for the 
        operation of a hospital or clinic of the Service under the 
        Indian Self-Determination and Education Assistance Act may 
        elect to directly bill for, and receive payment for, health 
        care services provided by such hospital or clinic for which 
        payment is made under title XVIII of the Social Security Act 
        (42 U.S.C. 1395 et seq.) (in this section referred to as the 
        `medicare program'), under a State plan for medical 
assistance approved under title XIX of the Social Security Act (42 
U.S.C. 1396 et seq.) (in this section referred to as the `medicaid 
program'), or from any other third party payor.
            ``(2) Application of 100 percent fmap.--The third sentence 
        of section 1905(b) of the Social Security Act (42 U.S.C. 
        1396d(b)) shall apply for purposes of reimbursement under the 
        medicaid program for health care services directly billed under 
        the program established under this section.
    ``(b) Direct Reimbursement.--
            ``(1) Use of funds.--Each hospital or clinic participating 
        in the program described in subsection (a) of this section 
        shall be reimbursed directly under the medicare and medicaid 
        programs for services furnished, without regard to the 
        provisions of section 1880(c) of the Social Security Act (42 
        U.S.C. 1395qq(c)) and sections 402(a) and 813(b)(2)(A), but all 
        funds so reimbursed shall first be used by the hospital or 
        clinic for the purpose of making any improvements in the 
        hospital or clinic that may be necessary to achieve or maintain 
        compliance with the conditions and requirements applicable 
        generally to facilities of such type under the medicare or 
        medicaid programs. Any funds so reimbursed which are in excess 
        of the amount necessary to achieve or maintain such conditions 
        shall be used--
                    ``(A) solely for improving the health resources 
                deficiency level of the Indian tribe; and
                    ``(B) in accordance with the regulations of the 
                Service applicable to funds provided by the Service 
                under any contract entered into under the Indian Self-
                Determination Act (25 U.S.C. 450f et seq.).
            ``(2) Audits.--The amounts paid to the hospitals and 
        clinics participating in the program established under this 
        section shall be subject to all auditing requirements 
        applicable to programs administered directly by the Service and 
        to facilities participating in the medicare and medicaid 
        programs.
            ``(3) Secretarial oversight.--
                    ``(A) Quarterly reports.--Subject to subparagraph 
                (B), the Secretary shall monitor the performance of 
                hospitals and clinics participating in the program 
                established under this section, and shall require such 
                hospitals and clinics to submit reports on the program 
                to the Secretary on a quarterly basis during the first 
                2 years of participation in the program and annually 
                thereafter.
                    ``(B) Annual reports.--Any participant in the 
                demonstration program authorized under this section as 
                in effect on the day before the date of enactment of 
                the Alaska Native and American Indian Direct 
                Reimbursement Act of 1998 shall only be required to 
                submit annual reports under this paragraph.
            ``(4) No payments from special funds.--Notwithstanding 
        section 1880(c) of the Social Security Act (42 U.S.C. 
        1395qq(c)) or section 402(a), no payment may be made out of the 
        special funds described in such sections for the benefit of any 
        hospital or clinic during the period that the hospital or 
        clinic participates in the program established under this 
        section.
    ``(c) Requirements for Participation.--
            ``(1) Application.--Except as provided in paragraph (2)(B), 
        in order to be eligible for participation in the program 
        established under this section, an Indian tribe, tribal 
        organization, or Alaska Native health organization shall submit 
        an application to the Secretary that establishes to the 
        satisfaction of the Secretary that--
                    ``(A) the Indian tribe, tribal organization, or 
                Alaska Native health organization contracts or compacts 
                for the operation of a facility of the Service;
                    ``(B) the facility is eligible to participate in 
                the medicare or medicaid programs under section 1880 or 
                1911 of the Social Security Act (42 U.S.C. 1395qq; 
                1396j);
                    ``(C) the facility meets the requirements that 
                apply to programs operated directly by the Service; and
                    ``(D) the facility is accredited by an accrediting 
                body designated by the Secretary or has submitted a 
                plan, which has been approved by the Secretary, for 
                achieving such accreditation.
            ``(2) Approval.--
                    ``(A) In general.--The Secretary shall review and 
                approve a qualified application not later than 90 days 
                after the date the application is submitted to the 
                Secretary unless the Secretary determines that any of 
                the criteria set forth in paragraph (1) are not met.
                    ``(B) Grandfather of demonstration program 
                participants.--Any participant in the demonstration 
                program authorized under this section as in effect on 
                the day before the date of enactment of the Alaska 
Native and American Indian Direct Reimbursement Act of 1998 shall be 
deemed approved for participation in the program established under this 
section and shall not be required to submit an application in order to 
participate in the program.
                    ``(C) Duration.--An approval by the Secretary of a 
                qualified application under subparagraph (A), or a 
                deemed approval of a demonstration program under 
                subparagraph (B), shall continue in effect as long as 
                the approved applicant or the deemed approved 
                demonstration program meets the requirements of this 
                section.
    ``(d) Examination and Implementation of Changes.--
            ``(1) In general.--The Secretary, acting through the 
        Service, and with the assistance of the Administrator of the 
        Health Care Financing Administration, shall examine on an 
        ongoing basis and implement--
                    ``(A) any administrative changes that may be 
                necessary to facilitate direct billing and 
                reimbursement under the program established under this 
                section, including any agreements with States that may 
                be necessary to provide for direct billing under the 
                medicaid program; and
                    ``(B) any changes that may be necessary to enable 
                participants in the program established under this 
                section to provide to the Service medical records 
                information on patients served under the program that 
                is consistent with the medical records information 
                system of the Service.
            ``(2) Accounting information.--The accounting information 
        that a participant in the program established under this 
        section shall be required to report shall be the same as the 
        information required to be reported by participants in the 
        demonstration program authorized under this section as in 
        effect on the day before the date of enactment of the Alaska 
        Native and American Indian Direct Reimbursement Act of 1998. 
        The Secretary may from time to time, after consultation with 
        the program participants, change the accounting information 
        submission requirements.
    ``(e) Withdrawal From Program.--A participant in the program 
established under this section may withdraw from participation in the 
same manner and under the same conditions that a tribe or tribal 
organization may retrocede a contracted program to the Secretary under 
authority of the Indian Self-Determination Act (25 U.S.C. 450 et seq.). 
All cost accounting and billing authority under the program established 
under this section shall be returned to the Secretary upon the 
Secretary's acceptance of the withdrawal of participation in this 
program.''.
    (b) Conforming Amendments.--
            (1) Section 1880 of the Social Security Act (42 U.S.C. 
        1395qq) is amended by adding at the end the following:
    ``(e) For provisions relating to the authority of certain Indian 
tribes, tribal organizations, and Alaska Native health organizations to 
elect to directly bill for, and receive payment for, health care 
services provided by a hospital or clinic of such tribes or 
organizations and for which payment may be made under this title, see 
section 405 of the Indian Health Care Improvement Act (25 U.S.C. 
1645).''.
            (2) Section 1911 of the Social Security Act (42 U.S.C. 
        1396j) is amended by adding at the end the following:
    ``(d) For provisions relating to the authority of certain Indian 
tribes, tribal organizations, and Alaska Native health organizations to 
elect to directly bill for, and receive payment for, health care 
services provided by a hospital or clinic of such tribes or 
organizations and for which payment may be made under this title, see 
section 405 of the Indian Health Care Improvement Act (25 U.S.C. 
1645).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on October 1, 1998.
Alaska Native and American Indian Direct Reimbursement Act of 1998 - Amends the Indian Health Care Improvement Act to make permanent the demonstration program under which Indian tribes, tribal organizations, and Alaska Native health organizations that contract or compact for the operation of a hospital or clinic of the Indian Health Service may directly bill for, and receive payment for, health care services provided by such hospital or clinic for which payment is made under Medicare or Medicaid or from any other third party payor. 
Requires participating hospitals and clinics to submit to the Secretary of Health and Human Services quarterly reports on the program during the first two years of participation and annual reports thereafter. 
Provides for:  (1) application to the Secretary by an Indian tribe, tribal organization, or Alaska Native health organization for participation of a Service facility in the program (the demonstration program was limited to four facilities); (2) the ongoing examination and implementation of necessary administrative changes to facilitate direct billing and reimbursement under the program; and (3) withdrawal from participation in the program.
Alaska Native and American Indian Direct Reimbursement Act of 1998