I
107TH CONGRESS
1ST SESSION
H. R. 274
To amend title XVIII of the Social Security Act to provide incentive payments
for multi-year contracts entered into by Medicare+Choice organizations,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 30, 2001
Mr. ISRAEL (for himself and Mr. GRUCCI) introduced the following bill; which
was referred to the Committee on Ways and Means, and in addition to
the Committee on Energy and Commerce, for a period to be subsequently
determined by the Speaker, in each case for consideration of such provi-
sions as fall within the jurisdiction of the committee concerned
A BILL
To amend title XVIII of the Social Security Act to provide
incentive payments for multi-year contracts entered into
by Medicare+Choice organizations, and for other pur-
poses.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Seniors’ Health Care
Bill of Rights of 2001’’.
SEC. 2. INCENTIVE PAYMENTS FOR MULTI-YEAR CON-
TRACTS FOR MEDICARE+CHOICE ORGANIZA-
TIONS.
(a) INCENTIVE PAYMENTS FOR MULTI-YEAR CON-
TRACTS WITH MEDICARE+CHOICE ORGANIZATIONS.—
Section 1853 of the Social Security Act (42 U.S.C.
1395w–23) is amended—
(1) in subsection (a)(1)(A), by striking ‘‘and
(i)’’ and inserting ‘‘(i), and (j)’’; and
(2) by adding at the end the following new sub-
section:
‘‘(j) 
INCREASED
PAYMENT
FOR
MULTI-YEAR
MEDICARE+CHOICE COORDINATED CARE PLAN CON-
TRACTS.—
‘‘(1) 
IN
GENERAL.—In 
the 
case 
of 
a
Medicare+Choice organization that enters into a
contract with the Secretary under section 1857 to
offer a Medicare+Choice plan for a period of 3
years, the amount of the monthly payment otherwise
made to the organization for the plan under this sec-
tion (taking into account, if applicable, subsection
(i)), shall be increased by 5 percent for each year of
the contract period.
‘‘(2) PENALTY FOR CONTRACT TERMINATION.—
In the case of a Medicare+Choice organization that
has entered into a contract described in paragraph
(1) that terminates such contract before the end of
the 3-year contract period, the Medicare+Choice or-
ganization shall pay to the Secretary an amount
equal to twice the aggregate amount of the increased
payments made to the organization by reason of
paragraph (1). Such moneys shall be deposited in
the Federal Hospital Insurance Trust Fund and the
Federal Supplementary Medical Insurance Trust
Fund in such proportion as the Secretary determines
appropriate.’’.
(b) DISQUALIFICATION FROM FEHBP PARTICIPA-
TION FOR CONTRACT TERMINATION IN MIDDLE OF CON-
TRACT TERM.—Section 1857(g)(3) of such Act (42 U.S.C.
1395w–27(g)(3)), as added by section 623(a) of the Medi-
care, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000, is amended by adding at the end
the following:
‘‘(E) Disqualification from participation
(or continued participation) in the Federal em-
ployees’ health benefits program, under chapter
89 of title 5, United States Code, where the
finding under subsection (c)(2)(A) is based on
the organization’s termination of its contract
under this section other than at the end of a
term under subsection (a).’’.
(c) NO NEW ENROLLMENTS IN PLAN AFTER ORGA-
NIZATION PROVIDES NOTICE OF PLAN TERMINATION.—
Section 1851(e) of such Act (42 U.S.C. 1395w–21(e)) is
amended—
(1) in paragraph (2), by striking ‘‘paragraph
(5)’’ and inserting ‘‘paragraphs (5) and (7)’’; and
(2) by adding at the end the following new
paragraph:
‘‘(7) NO NEW ENROLLMENTS IN A PLAN AFTER
NOTICE
OF
PLAN
TERMINATION
PROVIDED.—An
election of coverage under a Medicare+Choice plan
of an Medicare+Choice organization for an area
may not be made after the date that the organiza-
tion notifies the Secretary that the organization in-
tends to terminate the contract under this part with
respect to the plan and area at the end of the term
then current.’’.
(d) DEADLINE FOR MAILING NOTICE OF PLAN TER-
MINATION.—Section 1857(d)(3) of such Act (42 U.S.C.
1395w–27(d)(3)) is amended by adding at the end the fol-
lowing: ‘‘The organization shall mail such notice to each
such individual by not later than 30 days after the organi-
zation notifies the Secretary that the organization intends
to terminate the contract under this part with respect to
the plan and area.’’.
(e) EFFECTIVE DATES.—(1) The amendment made
by subsection (a) shall apply to terms of contracts that
begin after the date of the enactment of this Act.
(2) The amendments made by subsections (b) and (d)
shall apply to terminations occurring after the date of the
enactment of this Act.
(3) The amendments made by subsection (c) shall
apply to elections of enrollment occurring after the date
of the enactment of this Act.
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