SEC. 3. INSTITUTE OF MEDICINE STUDY. 
(a) IN GENERAL.—Not later than 60 days after the 
date of the enactment of this Act, the Secretary shall enter 
into an arrangement with the Institute of Medicine under 
which the Institute agrees to study— 
(1) the extent of health disparities in the type 
and quality of preventive interventions, health serv-
ices, and outcomes in all populations, including chil-
dren, in the United States; 
(2) the factors that may contribute to inequities 
in such disparities; 
(3) existing programs and policies intended to 
reduce such disparities; 
(4) best practices and successful strategies in 
programs that aim to reduce such disparities; 
(5) priorities for successful intervention pro-
grams targeting such disparities; and 
(6) potential opportunities for expanding or 
replicating such programs. 
(b) REPORT.—The arrangement under subsection (a) 
shall provide for submission by the Institute of Medicine 
to the Secretary and Congress, not later than 20 months 
after the date of enactment of this Act, of a report on 
the results of the study. 
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SEC. 4. GUIDELINES FOR DEVELOPMENT AND IMPLEMEN-
TATION OF HEALTH DISPARITIES REDUC-
TION PROGRAMS AND ACTIVITIES. 
(a) GUIDELINES.—Not later than 90 days after the 
submission of the report described in section 3(b), and 
taking such report into consideration, the Secretary shall 
develop guidelines for entities to develop and implement 
programs and activities to reduce health disparities in all 
populations, including children. 
(b) USE BY HHS.—The Secretary shall, where ap-
propriate, incorporate the use of the guidelines developed 
under subsection (a) into the programs and activities of 
the Department of Health and Human Services. 
(c) GRANTS FOR DISPARITIES REDUCTION ACTIVI-
TIES.— 
(1) IN GENERAL.—The Secretary may award 
grants to entities for the development and implemen-
tation of programs and activities to reduce health 
disparities in all populations, including children, in 
accordance with the guidelines described in sub-
section (a). 
(2) APPLICATIONS.—To seek a grant under this 
subsection, an entity shall submit an application to 
the Secretary at such time, in such manner, and 
containing such information as the Secretary may 
require. 
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(3) MINIMUM CONTENTS.—The Secretary shall 
require that an application for a grant under this 
subsection contains at a minimum— 
(A) a description of the population and 
public health concern the program will target 
and an outreach plan to ensure that the most 
in need populations will benefit; 
(B) a description of the strategies the enti-
ty will use— 
(i) to develop and implement its pro-
grams and activities in accordance with the 
guidelines developed under subsection (a); 
and 
(ii) to make the interventions sustain-
able; and 
(C) an agreement by the entities to peri-
odically provide data with respect to— 
(i) the population served; 
(ii) improvements in reducing health 
disparities; and 
(iii) effectiveness of the interventions 
used. 
(d) APPROPRIATIONS.—To carry out this section, 
there are authorized to be appropriated $5,000,000 for fis-
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cal year 2017 and such sums as may be necessary for each 
of fiscal years 2018 through 2021. 
SEC. 5. TESTING ALTERNATIVE PAYMENT AND DELIVERY 
MODELS TO REDUCE HEALTH DISPARITIES. 
(a) IN GENERAL.—The Secretary acting through the 
Centers for Medicare and Medicaid Innovation under sec-
tion 1115A of the Social Security Act (42 U.S.C. 1315a) 
shall provide for the testing of a payment and service de-
livery model that includes incentives for reducing health 
disparities in all populations, including children, consistent 
with the cost and quality criteria otherwise applicable to 
the testing of models under such section. 
(b) DOCUMENTATION REQUIREMENT
FOR MODEL 
TESTING.—In carrying out subsection (a), the Secretary 
shall require that an application to conduct such testing 
of such a model include at least— 
(1) documentation of at least one health dis-
parity targeted for reduction; 
(2) a root-cause analysis of the health disparity 
targeted for reduction; 
(3) identification and selection of performance 
targets for such reduction; 
(4) a proposal to make payments in some way 
contingent on a reduction in health disparities; and 
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(5) a reliable method for monitoring progress in 
achieving such a reduction. 
SEC. 6. DEFINITIONS. 
In this Act: 
(1) The term ‘‘health disparity’’ means signifi-
cant disparity in the overall rate of disease inci-
dence, prevalence, morbidity, mortality, or survival 
rates in a population as compared to the health sta-
tus of the general population. 
(2) The term ‘‘intervention’’ means an activity 
taken by an entity on behalf of individuals or popu-
lations to reduce health disparities. 
(3) The term ‘‘Secretary’’ means the Secretary 
of Health and Human Services. 
Æ 
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