TITLE IX--MEDICAID, PUBLIC HEALTH, AND OTHER HEALTH PROVISIONS

                    Subtitle A--Medicaid Provisions

SEC. 901. NATIONAL BIPARTISAN COMMISSION ON THE FUTURE OF MEDICAID.

    (a) Establishment.--There is established a commission to be known 
as the National Bipartisan Commission on the Future of Medicaid (in 
this section referred to as the ``Commission'').
    (b) Duties of the Commission.--The Commission shall--
            (1) review and analyze the long-term financial condition of 
        the medicaid program under title XIX of the Social Security Act 
        (42 U.S.C. 1396 et seq.);
            (2) identify the factors that are causing, and the 
        consequences of, increases in costs under the medicaid program, 
        including--
                    (A) the impact of these cost increases upon State 
                budgets, funding for other State programs, and levels 
                of State taxes necessary to fund growing expenditures 
                under the medicaid program;
                    (B) the financial obligations of the Federal 
                government arising from the Federal matching 
                requirement for expenditures under the medicaid 
                program; and
                    (C) the size and scope of the current program and 
                how the program has evolved over time;
            (3) analyze potential policies that will ensure both the 
        financial integrity of the medicaid program and the provision 
        of appropriate benefits under such program;
            (4) make recommendations for establishing incentives and 
        structures to promote enhanced efficiencies and ways of 
        encouraging innovative State policies under the medicaid 
        program;
            (5) make recommendations for establishing the appropriate 
        balance between benefits covered, payments to providers, State 
        and Federal contributions and, where appropriate, recipient 
        cost-sharing obligations;
            (6) make recommendations on the impact of promoting 
        increased utilization of competitive, private enterprise models 
        to contain program cost growth, through enhanced utilization of 
        private plans, pharmacy benefit managers, and other methods 
        currently being used to contain private sector health-care 
        costs;
            (7) make recommendations on the financing of prescription 
        drug benefits currently covered under medicaid programs, 
        including analysis of the current Federal manufacturer rebate 
        program, its impact upon both private market prices as well as 
        those paid by other government purchasers, recent State efforts 
        to negotiate additional supplemental manufacturer rebates and 
        the ability of pharmacy benefit managers to lower drug costs;
            (8) review and analyze such other matters relating to the 
        medicaid program as the Commission deems appropriate; and
            (9) analyze the impact of impending demographic changes 
        upon medicaid benefits, including long term care services, and 
        make recommendations for how best to appropriately divide State 
        and Federal responsibilities for funding these benefits.
    (c) Membership.--
            (1) Number and appointment.--The Commission shall be 
        composed of 17 members, of whom--
                    (A) four shall be appointed by the President;
                    (B) six shall be appointed by the Majority Leader 
                of the Senate, in consultation with the Minority Leader 
of the Senate, of whom not more than 4 shall be of the same political 
party;
                    (C) six shall be appointed by the Speaker of the 
                House of Representatives, in consultation with the 
                Minority Leader of the House of Representatives, of 
                whom not more than 4 shall be of the same political 
                party; and
                    (D) one, who shall serve as Chairman of the 
                Commission, appointed jointly by the President, 
                Majority Leader of the Senate, and the Speaker of the 
                House of Representatives.
            (2) Deadline for appointment.--Members of the Commission 
        shall be appointed by not later than December 1, 2002.
            (3) Terms of appointment.--The term of any appointment 
        under paragraph (1) to the Commission shall be for the life of 
        the Commission.
            (4) Meetings.--The Commission shall meet at the call of its 
        Chairman or a majority of its members.
            (5) Quorum.--A quorum shall consist of 8 members of the 
        Commission, except that 4 members may conduct a hearing under 
        subsection (e).
            (6) Vacancies.--A vacancy on the Commission shall be filled 
        in the same manner in which the original appointment was made 
        not later than 30 days after the Commission is given notice of 
        the vacancy and shall not affect the power of the remaining 
        members to execute the duties of the Commission.
            (7) Compensation.--Members of the Commission shall receive 
        no additional pay, allowances, or benefits by reason of their 
        service on the Commission.
            (8) Expenses.--Each member of the Commission shall receive 
        travel expenses and per diem in lieu of subsistence in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
    (d) Staff and Support Services.--
            (1) Executive director.--
                    (A) Appointment.--The Chairman shall appoint an 
                executive director of the Commission.
                    (B) Compensation.--The executive director shall be 
                paid the rate of basic pay for level V of the Executive 
                Schedule.
            (2) Staff.--With the approval of the Commission, the 
        executive director may appoint such personnel as the executive 
        director considers appropriate.
            (3) Applicability of civil service laws.--The staff of the 
        Commission shall be appointed without regard to the provisions 
        of title 5, United States Code, governing appointments in the 
        competitive service, and shall be paid without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        such title (relating to classification and General Schedule pay 
        rates).
            (4) Experts and consultants.--With the approval of the 
        Commission, the executive director may procure temporary and 
        intermittent services under section 3109(b) of title 5, United 
        States Code.
            (5) Physical facilities.--The Administrator of the General 
        Services Administration shall locate suitable office space for 
        the operation of the Commission. The facilities shall serve as 
        the headquarters of the Commission and shall include all 
        necessary equipment and incidentals required for the proper 
        functioning of the Commission.
    (e) Powers of Commission.--
            (1) Hearings and other activities.--For the purpose of 
        carrying out its duties, the Commission may hold such hearings 
        and undertake such other activities as the Commission 
        determines to be necessary to carry out its duties.
            (2) Studies by gao.--Upon the request of the Commission, 
        the Comptroller General shall conduct such studies or 
        investigations as the Commission determines to be necessary to 
        carry out its duties.
            (3) Cost estimates by congressional budget office and 
        office of the chief actuary of hcfa.--
                    (A) The Director of the Congressional Budget Office 
                or the Chief Actuary of the Centers for Medicare & 
                Medicaid Services, or both, shall provide to the 
                Commission, upon the request of the Commission, such 
                cost estimates as the Commission determines to be 
                necessary to carry out its duties.
                    (B) The Commission shall reimburse the Director of 
                the Congressional Budget Office for expenses relating 
                to the employment in the office of the Director of such 
                additional staff as may be necessary for the Director 
                to comply with requests by the Commission under 
                subparagraph (A).
            (4) Detail of federal employees.--Upon the request of the 
        Commission, the head of any Federal agency is authorized to 
        detail, without reimbursement, any of the personnel of such 
        agency to the Commission to assist the Commission in carrying 
        out its duties. Any such detail shall not interrupt or 
        otherwise affect the civil service status or privileges of the 
        Federal employee.
            (5) Technical assistance.--Upon the request of the 
        Commission, the head of a Federal agency shall provide such 
        technical assistance to the Commission as the Commission 
        determines to be necessary to carry out its duties.
            (6) Use of mails.--The Commission may use the United States 
        mails in the same manner and under the same conditions as 
        Federal agencies and shall, for purposes of the frank, be 
        considered a commission of Congress as described in section 
        3215 of title 39, United States Code.
            (7) Obtaining information.--The Commission may secure 
        directly from any Federal agency information necessary to 
        enable it to carry out its duties, if the information may be 
        disclosed under section 552 of title 5, United States Code. 
        Upon request of the Chairman of the Commission, the head of 
        such agency shall furnish such information to the Commission.
            (8) Administrative support services.--Upon the request of 
        the Commission, the Administrator of General Services shall 
        provide to the Commission on a reimbursable basis such 
        administrative support services as the Commission may request.
            (9) Printing.--For purposes of costs relating to printing 
        and binding, including the cost of personnel detailed from the 
        Government Printing Office, the Commission shall be deemed to 
        be a committee of the Congress.
    (f) Report.--Not later than March 1, 2004, the Commission shall 
submit a report to the President and Congress which shall contain a 
detailed statement of only those recommendations, findings, and 
conclusions of the Commission.
    (g) Termination.--The Commission shall terminate 30 days after the 
date of submission of the report required in subsection (f).
    (h) Authorization of Appropriations.--There are authorized to be 
appropriated $1,500,000 to carry out this section.
Title IX (sic): Medicaid, Public Health, and Other Health Provisions - Subtitle A: Medicaid Provisions - Establishes the National Bipartisan Commission on the Future of Medicaid to: (1) review and analyze the long-term financial condition of the Medicaid program under title XIX of the Social Security Act (SSA); (2) identify the factors that are causing, and the consequences of, increases in costs under the Medicaid program; (3) analyze potential policies that will ensure both the financial integrity of the Medicaid program and the provision of appropriate benefits; (4) make recommendations for establishing incentives and structures to promote enhanced efficiencies and ways of encouraging innovative State policies; (5) make recommendations for establishing the appropriate balance between benefits covered, payments to providers, State and Federal contributions and, where appropriate, recipient cost-sharing obligations; (6) make recommendations on the impact of promoting increased utilization of competitive, private enterprise models to contain program cost growth, through enhanced utilization of private plans, pharmacy benefit managers, and other methods currently being used to contain private sector health-care costs; (7) make recommendations on the financing of prescription drug benefits currently covered under Medicaid programs, including analysis of the current Federal manufacturer rebate program, its impact upon both private market prices as well as those paid by other government purchasers, recent State efforts to negotiate additional supplemental manufacturer rebates and the ability of pharmacy benefit managers to lower drug costs; (8) review and analyze such other matters relating to the Medicaid program as the Commission deems appropriate; and (9) analyze the impact of impending demographic changes upon Medicaid benefits, including long term care services, making recommendations for how best to appropriately divide State and Federal responsibilities for funding these benefits.
To establish a National Bipartisan Commission on the Future of Medicaid.