(7) To encourage the effective use of preventive
and primary care.
(8) To enhance the autonomy of practitioners
by limiting the intrusiveness of government interven-
tion in the actual delivery of care.
(9) To promote the role of competition and col-
laboration among practitioners and insurers to en-
courage innovation that results in higher quality and
more efficient care.
(10) To reduce the incentives providers face to
perform medically unnecessary or inappropriate serv-
ices.
(11) To reinforce the public accountability of
the health care system, permitting explicit and open
deliberation about the allocation of resources to
health care.
(12) To provide that all Americans share in the
responsibility of maintaining an efficient health care
system.
SEC. 3. DEFINITIONS.
In this Act:
(1) The term ‘‘approved health insurance pol-
icy’’ means a health insurance policy which has been
approved by the Federal Health Board under section
201(a).
(2) The term ‘‘covered district health care serv-
ices’’ means the following services:
(A) Ambulance services.
(B) Dialysis.
(C) Hospice care.
(D) Inpatient and outpatient hospital serv-
ices (including such services provided for treat-
ment of mental illness), including—
(i) accommodation and meals at the
standard level (and preferred accommoda-
tion if medically required),
(ii) nursing services,
(iii) laboratory, radiological, and other
diagnostic procedures (together with nec-
essary interpretations),
(iv) drugs, biologicals, and related
preparations when administered in the hos-
pital,
(v) use of operating room, case room,
and anesthetic facilities, including nec-
essary equipment and supplies,
(vi) medical and surgical equipment
and supplies,
(vii) emergency room services,
(viii) use of radiotherapy facilities,
(ix) use of physiotherapy facilities,
(x) services of hospital-based health
care practitioners (such as anesthesiol-
ogists, certified registered nurse anes-
thetists, pathologists, and radiologists), as
specified by the Federal Health Board, and
(xi) services provided by other persons
who receive remuneration therefore from
the hospital;
but excluding health care practitioner services
furnished on an outpatient basis and for which
remuneration is not paid by the hospital.
(E) Inhalation services.
(F) Partial hospitalization or day treat-
ment services for treatment of mental illness,
excluding health care practitioner services fur-
nished on an outpatient basis and for which re-
muneration is not paid by the hospital.
(G) Nuclear medicine.
(H) Nursing care in an individual’s place
of residence.
(I) Inpatient, outpatient, and residential
substance abuse treatment services.
(J) Home care services (other than health
care practitioner services)—
(i) for treatment of a diagnosed medi-
cal condition or rehabilitation,
(ii) for treatment of a long-term dis-
ability, or
(iii) for frail individuals at risk of in-
stitutionalization in the absence of such
services.
(K) Nursing facility services, including
long-term residential care.
(L) Respite care.
(3) The term ‘‘district board’’ refers to a
Health Care District Board appointed under section
202.
(4) The term ‘‘Federal Health Board’’ refers to
the Federal Health Board established under section
101.
(5) The term ‘‘Federal Health Education Com-
mission’’ refers to the Federal Health Education
Commission established under section 102.
(6) The term ‘‘global budget’’ means, with re-
spect to a district for a 12-month period, a com-
prehensive annual budget established by the district
board for the district and setting forth, in advance
of the period—