SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Medicare Beneficiaries’ Choice Stabilization Act of
2000’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Establishment of payment floor for Medicare+Choice payment rates
after applying risk-adjustment methodology.
Sec. 3. Change in application of budget neutrality adjustment for 2001 and
2002.
Sec. 4. Increase in national per capita Medicare+Choice growth percentage in
2001 and 2002.
Sec. 5. Increasing minimum payment amount.
Sec. 6. Allowing movement to 50:50 percent blend in 2002.
Sec. 7. Increased 
update 
for 
payment 
areas 
with 
only 
one 
or 
no
Medicare+Choice contracts.
Sec. 8. Permitting higher negotiated rates in certain Medicare+Choice payment
areas below national average.
Sec. 9. 10-year phase in of risk adjustment based on data from all settings.
Sec. 10. Delay from July to November, 2000 in deadline for offering and with-
drawing Medicare+Choice plans for 2001.
Sec. 11. Miscellaneous regulatory changes.
SEC. 
2. 
ESTABLISHMENT 
OF 
PAYMENT 
FLOOR 
FOR
MEDICARE+CHOICE PAYMENT RATES AFTER
APPLYING 
RISK-ADJUSTMENT 
METHOD-
OLOGY.
(a) IN GENERAL.—Section 1853(c)(1) of the Social
Security Act (42 U.S.C. 1395w–23(c)(1)) is amended—
(1) in the matter preceding subparagraph (A),
by striking ‘or (C)’ and inserting ‘(C), or (D)’; and
(2) by adding at the end the following new sub-
paragraph:
‘‘(D) DEMOGRAPHICALLY ADJUSTED FEE-
FOR-SERVICE PER CAPITA EXPENDITURES.—
‘‘(i) IN
GENERAL.—For 2001 and
each subsequent year, 90 percent of the
adjusted average per capita cost for the
year for the Medicare+Choice payment
area determined by the Secretary based
upon the rule specified under paragraph
(4) of section 1876(a) and calculated with-
out regard to the adjustment under para-
graph (1)(C) of such section.
‘‘(ii) SPECIAL
RULE
FOR
RISK
AD-
JUSTMENT.—For purposes of applying risk
adjustment to the payment amount deter-
mined under this subparagraph for a de-
mographic class, the risk adjustment for
such demographic class shall be deter-
mined under the methodology applied by
the Secretary under section 1876(a)(4)
without regard to subsection (a)(3) of this
section.’’.
(b) CONTINUATION OF COMPUTATION OF AAPCC
DATA.—Section 1853(b) of such Act (42 U.S.C. 1395w–
23(b)) is amended by adding at the end the following new
paragraph:
‘‘(4) CONTINUED COMPUTATION AND PUBLICA-
TION
OF
COUNTY-SPECIFIC
PER
CAPITA
FEE-FOR-
SERVICE
EXPENDITURE
INFORMATION.—Using the
most recent data available, the Secretary shall pro-
vide for the computation and publication, on an an-
nual basis at the time of publication of the annual
Medicare+Choice capitation rates, of information on
the level of the average annual per capita costs (de-
scribed 
in 
section 
1876(a)(4)) 
for 
each
Medicare+Choice payment area.’’.
SEC. 3. ELIMINATION OF BUDGET NEUTRALITY ADJUST-
MENT FOR 2001 AND 2002.
Section 1853(c) of the Social Security Act (42 U.S.C.
1395w–23(c)) is amended—
(1) in paragraph (1)(A) in the matter following
clause (ii), by inserting ‘‘for a year (other than 2001
or 2002)’’ after ‘‘multiplied’’; and
(2) in paragraph (5), by inserting ‘‘(other than
2001 or 2002)’’ after ‘‘for each year’’.
SEC. 
4. 
INCREASE 
IN 
NATIONAL 
PER 
CAPITA
MEDICARE+CHOICE GROWTH PERCENTAGE
IN 2001 AND 2002.
Section 1853(c)(6)(B) of the Social Security Act (42
U.S.C. 1395w–23(c)(6)(B)) is amended—
(1) in clause (iv), by striking ‘‘for 2001, 0.5
percentage points’’ and inserting ‘‘for 2001, 0 per-
centage points’’; and
(2) in clause (v), by striking ‘‘for 2002, 0.3 per-
centage points’’ and inserting ‘‘for 2002, 0 percent-
age points’’.
SEC. 5. INCREASING MINIMUM PAYMENT AMOUNT.
(a) IN GENERAL.—Section 1853(c)(1)(B)(ii) of the
Social Security Act (42 U.S.C. 1395w–23(c)(1)(B)(ii)) is
amended—
(1) by striking ‘‘(ii) For a succeeding year’’ and
inserting ‘‘(ii)(I) Subject to subclause (II), for a suc-
ceeding year’’; and
(2) by adding at the end the following new sub-
clause:
‘‘(II) For 2001 for any of the 50
States and the District of Columbia,
$450.’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to years beginning with 2001.
SEC. 6. ALLOWING MOVEMENT TO 50:50 PERCENT BLEND IN
2002.
Section 1853(c)(2) of the Social Security Act (42
U.S.C. 1395w–23(c)(2)) is amended—
(1) by striking the period at the end of sub-
paragraph (F) and inserting a semicolon; and
(2) by adding after and below subparagraph
(F) the following:
‘‘except that a Medicare+Choice organization may
elect to apply subparagraph (F) (rather than sub-
paragraph (E)) for 2001 and for 2002.’’.
SEC. 7. INCREASED UPDATE FOR PAYMENT AREAS WITH
ONLY ONE OR NO MEDICARE+CHOICE CON-
TRACTS.
(a) IN GENERAL.—Section 1853(c)(1)(C)(ii) of the
Social Security Act (42 U.S.C. 1395w–23(c)(1)(C)(ii)) is
amended—
(1) by striking ‘‘(ii) For a subsequent year’’
and inserting ‘‘(ii)(I) Subject to subclause (II), for
a subsequent year’’; and
(2) by adding at the end the following new sub-
clause:
‘‘(II) During 2001, 2002, 2003, 2004,
and 
2005, 
in 
the 
case 
of 
a
Medicare+Choice payment area in which
there is no more than one contract entered
into under this part as of July 1 before the
beginning of the year, 102.5 percent of the
annual Medicare+Choice capitation rate