SECTION. 1. DEMONSTRATION PROJECTS TO INCREASE QUALITY OF INFORMATION 
              PROVIDED TO MEDICARE BENEFICIARIES WITH RESPECT TO 
              TREATMENT OPTIONS.

    (a) Establishment of Project.--
            (1) In general.--Not later than January 1, 2001, the 
        Secretary of Health and Human Services shall establish 
        demonstration projects (in this section referred to as the 
        ``projects'') under which the Secretary shall furnish to 
        providers of services and physicians participating in the 
        Medicare Program under title XVIII of the Social Security Act 
        informational videotapes (as described in subsection (b)) to 
        present to a Medicare beneficiary diagnosed with a particular 
        disease or injury (as identified by the Secretary pursuant to 
        subsection (c)) before the beneficiary elects a course of 
        treatment for that disease or injury. The Secretary shall 
        furnish such informational videotapes at no cost to such 
        providers and physicians.
            (2) Project areas.--The projects shall be conducted in five 
        separate counties of which 3 shall be in urban areas and 2 
        shall be in rural areas.
    (b) Informational Videotape Described.--
            (1) In general.--The Institute of Medicine, in consultation 
        with the National Institutes of Health and other medical 
        experts (as determined by the Secretary), shall develop a 
        videotape presentation to provide a Medicare beneficiary 
        diagnosed as having the disease or injury identified under 
        subsection (c) with the following information:
                    (A) A description of the disease or injury.
                    (B) The possible courses of treatment for the 
                disease or injury.
                    (C) The likely consequences of each such course of 
                treatment or of the decision not to pursue any course 
                of treatment.
            (2) Concluding statement.--Any such videotape presentation 
        shall conclude with a statement that the Medicare beneficiary 
        may elect any course of treatment or not to pursue any course 
        of treatment, that the Medicare beneficiary should consult with 
        a physician, and that the Medicare beneficiary may seek a 
        referral to a physician who furnishes services consisting of 
        the course of treatment that the beneficiary elects.
            (3) Updating of videotape.--Any such videotape presentation 
        shall be updated to reflect new findings based on the best 
        scientific evidence available, as determined by the Institute 
        of Medicine, in consultation with the National Institutes of 
        Health and such other medical experts, about the disease or 
        injury, and various courses of treatment.
    (c) Selection of Disease or Injury.--
            (1) In general.--For purposes of selecting a particular 
        disease or injury for which a informational videotape shall be 
        provided under the projects, the Secretary shall identify 
        diseases or injuries for which there is a wide variation in 
        treatment of that disease throughout the United States.
            (2) Mandatory Designation of Prostate Enlargement for One 
        Project.--The disease or injury for which a informational 
        videotape is provided in one of the projects conducted under 
        this section shall be benign and malignant prostate 
        enlargement.
    (d) Payment.--(1) The Secretary shall establish a payment amount to 
be made to a provider of services or a physician under title XVIII of 
the Social Security Act to reflect services consisting of the 
presentation of a informational videotape to and consultation with a 
Medicare beneficiary after such presentation.
    (2) For purposes of the payment amount under paragraph (1), no 
payment may be made for the purchase or rental of equipment or office 
space for purposes of making such presentation.
    (e) Waiver Authority.--The Secretary may waive such requirements of 
title XVIII of such Act as may be necessary for the purposes of 
carrying out the project.
    (f) Reports.--Not later than June 1, 2004, the Secretary shall 
submit to Congress a report on the following matters:
            (1) A description of courses of treatment for the diseases 
        or illnesses identified under subsection (c) selected by 
        Medicare beneficiaries during the three year period ending on 
        December 31, 2003.
            (2) A comparison between courses of treatment described in 
        paragraph (1) and courses of treatment selected by the Medicare 
        beneficiaries participating in the project.
            (3) An analysis of the effect on costs to the Medicare 
        program due to any change in selection of courses of treatment.
    (g) Duration.--A demonstration project under this section shall be 
conducted for a 3-year period.
Directs the Secretary of Health and Human Services to establish specified demonstration projects designed to furnish a Medicare beneficiary diagnosed with a particular disease or injury informational videotapes before he or she elects a course of treatment for that disease or injury.  Mandates that one project provide such a video on prostate enlargement. 
Directs the Institute of Medicine to develop demonstrations of such videotapes.
To require the Secretary of Health and Human Services to establish a demonstration project to provide Medicare beneficiaries greater information with respect to various courses of treatment for certain diseases or injuries to enable the beneficiaries to make more informed decisions when selecting a course of treatment for the disease or injury.