necessary for the proper processing 
and payment of the claim. 
‘‘(ii) PAYMENT OF CLEAN PORTIONS 
OF CLAIMS.—A PDP sponsor shall, as ap-
propriate, pay any portion of a claim for a 
covered part D drug that would be a clean 
claim but for a defect or impropriety in a 
separate portion of the claim in accordance 
with subparagraph (A). 
‘‘(iii) OBLIGATION TO PAY.—A claim 
for a covered part D drug submitted to a 
PDP sponsor that is not paid or contested 
by the provider within the applicable num-
ber of calendar days (as defined in sub-
paragraph (B)) shall be deemed to be a 
clean claim and shall be paid by the PDP 
sponsor in accordance with subparagraph 
(A). 
‘‘(iv) DATE OF PAYMENT OF CLAIM.— 
Payment of a clean claim under subpara-
graph (A) is considered to have been made 
on the date on which full payment is re-
ceived by the provider. 
‘‘(E) 
ELECTRONIC
TRANSFER
OF 
FUNDS.—A PDP sponsor shall pay all clean 
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claims submitted electronically by an electronic 
funds transfer mechanism.’’. 
(b) APPLICATION
TO
MA–PD PLANS.—Section 
1857(f) of such Act (42 U.S.C. 1395w–27) is amended 
by adding at the end the following new paragraph: 
‘‘(3) INCORPORATION
OF
CERTAIN
PRESCRIP-
TION DRUG PLAN CONTRACT REQUIREMENTS.—The 
provisions of section 1860D–12(b)(4) shall apply to 
contracts with a Medicare Advantage organization in 
the same manner as they apply to contracts with a 
PDP sponsor offering a prescription drug plan 
under part D.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contracts entered into or re-
newed on or after the date of the enactment of this Act. 
SEC. 308. EXTENSION OF MEDICARE REASONABLE COSTS 
PAYMENTS FOR CERTAIN CLINICAL DIAG-
NOSTIC LABORATORY TESTS FURNISHED TO 
HOSPITAL PATIENTS IN CERTAIN RURAL 
AREAS. 
Section 416(b) of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003 (Public Law 
108–173; 117 Stat. 2282; 42 U.S.C. 1395l–4(b)) is 
amended by striking ‘‘2-year’’ and inserting ‘‘7-year’’. 
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SEC. 309. EXTENSION OF TEMPORARY MEDICARE PAYMENT 
INCREASE FOR HOME HEALTH SERVICES 
FURNISHED IN A RURAL AREA. 
(a) IN GENERAL.—Section 421 of the Medicare Pre-
scription Drug, Improvement, and Modernization Act of 
2003 (Public Law 108–173; 117 Stat. 2283; 42 U.S.C. 
1395fff note), as amended by section 5201(b) of the Def-
icit Reduction Act of 2005, is amended— 
(1) in the heading, by striking ‘‘ONE-YEAR’’ 
and inserting ‘‘TEMPORARY’’; and 
(2) in subsection (a) by striking ‘‘before April 
1, 2005, and episodes and visits beginning on or 
after January 1, 2006, and before January 1, 2007’’ 
and inserting ‘‘before December 31, 2011’’. 
(b) APPLICATION TO CERTAIN HOME HEALTH SERV-
ICES FURNISHED PRIOR TO DATE OF ENACTMENT.—For 
episodes and visits for home health services furnished on 
or after April 1, 2005, and before the date of the enact-
ment of this Act, the Secretary of Health and Human 
Services shall provide for a lump sum payment, not later 
than 60 days after such enactment, of amounts due under 
the amendment made by subsection (a)(2). 
(c) EFFECTIVE DATE.—The amendments made by 
subsection (a) shall apply to episodes and visits on or after 
April 1, 2005. 
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