SEC. 2. ESTABLISHING A DEMONSTRATION PROGRAM TO 
PROMOTE COLLABORATIVE TREATMENT OF 
MENTAL 
AND 
PHYSICAL 
HEALTH 
COMORBIDITIES UNDER THE MEDICARE PRO-
GRAM. 
Title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.) is amended by inserting after section 1866G 
the following new section: 
‘‘SEC. 
1866H. 
MENTAL 
AND 
PHYSICAL 
HEALTH 
COMORBIDITIES 
COLLABORATIVE 
DEM-
ONSTRATION PROGRAM. 
‘‘(a) IN GENERAL.—Consistent with the model de-
scribed in section 1115A(b)(2)(B)(xv) (relating to pro-
moting improved quality and reduced cost by developing 
a collaborative of high-quality, low-cost health care institu-
tions), the Secretary shall conduct a demonstration pro-
gram (in this section referred to as the ‘program’) to test 
and evaluate innovations implemented by eligible hospitals 
(as defined in subsection (f)) in the furnishing of items 
and services to applicable individuals (as defined in sub-
section (f)) with mental and physical health comorbidities 
(and those at risk of developing such comorbidities), in-
cluding by addressing the adverse social determinants of 
health that such individuals often experience. 
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‘‘(b) ACTIVITIES UNDER PROGRAM.—Under the pro-
gram, the Secretary shall, in coordination with eligible 
hospitals participating in the program— 
‘‘(1) identify, validate, and disseminate innova-
tive, effective evidence-based best practices and mod-
els that improve care and outcomes for applicable in-
dividuals 
with 
mental 
and 
physical 
health 
comorbidities located in vulnerable communities, in-
cluding by addressing the social determinants of 
health that adversely impact such individuals; and 
‘‘(2) assist in the identification of potential pay-
ment reforms under this title and title XIX that 
could more broadly effectuate such improvements. 
‘‘(c) DURATION
AND SCOPE.—The program con-
ducted under this section shall operate during the period 
beginning on October 1, 2025, and ending no later than 
September 30, 2030. 
‘‘(d) PROGRAM ELEMENTS.— 
‘‘(1) IN GENERAL.—An eligible hospital electing 
to participate in the program shall enter into an 
agreement with the Secretary for purposes of car-
rying out the activities described in subsection (b). 
Such an agreement shall include the plan described 
in paragraph (2), along with an annualized payment 
arrangement as described in paragraph (3) to sup-
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port implementation of such plan. Such agreement 
shall include a requirement for the hospital to— 
‘‘(A) engage in the learning collaborative 
established under subsection (e); 
‘‘(B) certify that all proposed innovations 
under such plan will supplement and not sup-
plant existing activities, whether by augmenting 
existing activities or initiating new activities; 
and 
‘‘(C) remit payments made under such ar-
rangement to the Secretary if the Secretary de-
termines that such hospital has not complied 
with the terms of such agreement. 
‘‘(2) PROGRAM
ELEMENTS.—An eligible hos-
pital electing to participate in the program shall sub-
mit a proposed plan and associated quality metrics 
for review and approval by the Secretary. Such plan 
and metrics shall, at a minimum, address— 
‘‘(A) the specific innovations addressing 
mental and physical health comorbidities (as de-
fined in subsection (f)) and innovations ad-
dressing social determinants of health (as de-
fined in such subsection) that will be employed 
and the evidence base supporting the proposed 
approach; 
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‘‘(B) the proposed target population of ap-
plicable individuals with respect to which such 
innovations will be employed, including a de-
scription of the extent to which such population 
consists of applicable individuals described in 
subparagraph (A), (B), or (C) of subsection 
(f)(1); 
‘‘(C) the evidence-based data supporting a 
community’s status as a vulnerable community 
through sources, such as Bureau of the Census 
data and measures such as the Neighborhood 
Deprivation Index or the Child Opportunity 
Index; 
‘‘(D) community partners, such as non-
profit organizations, federally qualified health 
centers, rural health clinics, and units of local 
government (including law enforcement and ju-
dicial entities) that will participate in the imple-
mentation of such innovations; 
‘‘(E) how such innovations will address 
mental and physical health comorbidities and 
social determinants of health for the target pop-
ulation; 
‘‘(F) how such innovations may inform 
changes in payment and other policies under 
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this title and title XIX (such as care coordina-
tion reimbursement, mental health homes, im-
provements to home and community-based serv-
ice portfolios, and coverage of supportive serv-
ices); 
‘‘(G) how such innovations might con-
tribute to a reduction in overall health care 
costs, including under this title and title XIX 
and for uninsured persons, through improve-
ments in population health, reductions in health 
care utilization (such as inpatient admissions, 
utilization of emergency departments, and 
boarding of patients), and otherwise; 
‘‘(H) how such innovations can be expected 
to improve the mental and physical health sta-
tus of minority populations; 
‘‘(I) how such innovations can be expected 
to reduce other non-medical public expendi-
tures; 
‘‘(J) metrics to track care quality, im-
provement in outcomes, and the impact of such 
innovations on health care and other public ex-
penditures; 
‘‘(K) how program outcomes will be as-
sessed and evaluated; and 
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