is 120 days after the date of the enactment of this 
Act. 
(2) PREEMPTION OF STATE LAWS.—No State 
(as defined in section 1101(a) of the Social Security 
Act (42 U.S.C. 1301(a)) for purposes of title XI of 
such Act) shall have in effect a State law that im-
poses a criminal or civil penalty for a transaction de-
scribed in section 1877(b)(6) of such Act, as added 
by subsection (a), if the conditions described in such 
section, with respect to such transaction, are met. 
(c) STUDY AND REPORT TO ASSESS EFFECT OF EX-
CEPTION ON HEALTH SYSTEM.— 
(1) IN GENERAL.—The Secretary of Health and 
Human Services shall conduct a study to determine 
the impact of the exception under section 1877(b)(6) 
of such Act (42 U.S.C. 1395nn(b)(6)), as added by 
subsection (a). In particular, the study shall examine 
the following: 
(A) The effectiveness of the exception in 
increasing the adoption of health information 
technology. 
(B) The types of health information tech-
nology provided under the exception. 
(C) The extent to which the financial or 
other business relationships between providers 
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under the exception have changed as a result of 
the exception in a way that adversely affects or 
benefits the health care system or choices avail-
able to consumers. 
(D) The impact of the adoption of health 
information technology on health care quality, 
cost, and access under the exception. 
(2) REPORT.—Not later than three years after 
the effective date described in subsection (b)(1), the 
Secretary of Health and Human Services shall sub-
mit to Congress a report on the study under para-
graph (1). 
SEC. 204. RULES OF CONSTRUCTION REGARDING USE OF 
CONSORTIA. 
(a) APPLICATION TO SAFE HARBOR FROM CRIMINAL 
PENALTIES.—Section 1128B(b)(3) of the Social Security 
Act (42 U.S.C. 1320a–7b(b)(3)) is amended by adding 
after and below subparagraph (J), as added by section 
203(b)(1), the following: ‘‘For purposes of subparagraph 
(J), nothing in such subparagraph shall be construed as 
preventing a specified entity, consistent with the specific 
requirements of such subparagraph, from forming a con-
sortium composed of health care providers, payers, em-
ployers, and other interested entities to collectively pur-
chase and donate health information technology, or from 
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offering health care providers a choice of health informa-
tion technology products in order to take into account the 
varying needs of such providers receiving such products.’’. 
(b) APPLICATION
TO STARK EXCEPTION.—Para-
graph (6) of section 1877(b) of the Social Security Act 
(42 U.S.C. 1395nn(b)), as added by section 203(a), is 
amended by adding at the end the following new subpara-
graph: 
‘‘(D) RULE OF CONSTRUCTION.—For pur-
poses of subparagraph (A), nothing in such 
subparagraph shall be construed as preventing 
a specified entity, consistent with the specific 
requirements of such subparagraph, from— 
‘‘(i) forming a consortium composed 
of health care providers, payers, employers, 
and other interested entities to collectively 
purchase and donate health information 
technology; or 
‘‘(ii) offering health care providers a 
choice of health information technology 
products in order to take into account the 
varying needs of such providers receiving 
such products.’’. 
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TITLE III—INFORMATION AND 
REPORTS 
SEC. 301. INFORMATION FOR PHYSICIANS ON MEDICARE 
BILLINGS. 
(a) IN GENERAL.—Section 1848 of the Social Secu-
rity Act, as amended by section 201, is further amended 
by adding at the end the following new subsection: 
‘‘(n) ANNUAL REPORTING OF INFORMATION TO PHY-
SICIANS.— 
‘‘(1) IN GENERAL.—The Secretary shall annu-
ally report to each physician information on total bil-
lings by the physician (including laboratory tests 
and other items and services ordered by the physi-
cian) under this title. Such information shall be pro-
vided in a comparative format by code, weighting for 
practice size, number of Medicare patients treated, 
and relative number of Medicare beneficiaries in the 
geographical area. 
‘‘(2) CONFIDENTIALITY.—Information reported 
under paragraph (1) is confidential and shall not be 
disclosed to other than the physician to whom the 
information relates.’’. 
(b) EFFECTIVE DATE.—The Secretary of Health and 
Human Services shall first provide for reporting of infor-
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mation under the amendment made by subsection (a) for 
billings during 2007. 
SEC. 302. INFORMATION FOR BENEFICIARIES ON MEDI-
CARE EXPENDITURES. 
(a) IN GENERAL.—Section 1804 of the Social Secu-
rity Act is amended by adding at the end the following 
new subsection: 
‘‘(d) ANNUAL REPORT ON INDIVIDUAL RESOURCE 
UTILIZATION.—The Secretary shall provide for the report-
ing, on an annual basis, to each individual entitled to ben-
efits under part A or enrolled under part B, on the amount 
of payments made to or on behalf of the individual under 
this title during the year involved. Such information shall 
be provided in a format that compares such amount with 
the average per capita expenditures in the region or area 
involved.’’. 
(b) EFFECTIVE DATE.—The Secretary of Health and 
Human Services shall first provide for reporting of infor-
mation under the amendment made by subsection (a) for 
payments made during 2007. 
SEC. 303. COLLECTION OF DATA ON MEDICARE SAVINGS 
FROM PHYSICIANS’ SERVICES DIVERSION. 
(a) IN GENERAL.—The Secretary of Health and 
Human Services shall collect data on annual savings in 
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