side in the geographic area served by the pro-
vider (and specified in such agreement) and 
elect to enroll with the provider. 
‘‘(B) CHOICE AND COMPETITION.—To the 
extent feasible, the State shall enter into agree-
ments with multiple providers in a single geo-
graphic area, and enter into agreements that 
provide coverage to as much of the State as is 
practicable. 
‘‘(C) 
REPORTING
REQUIREMENT.—An 
agreement entered into under subparagraph (A) 
shall require that a program provider submit to 
the Secretary, in a form and manner specified 
by the Secretary and for each eligible child who 
is enrolled with the program provider under 
such an agreement, the following: 
‘‘(i) Service utilization data. 
‘‘(ii) Expenditures. 
‘‘(iii) Quality and health status meas-
ures (as identified by the Secretary). 
‘‘(2) PAYMENT.— 
‘‘(A) The State may utilize a negotiated, 
all-inclusive payment method that reflects the 
full range of medical assistance and related ad-
ministrative activities recognized under section 
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1903 of the Act for which the provider will as-
sume responsibility. 
‘‘(B) Such payment method shall provide 
for payment in an all-inclusive amount (using 
such methods as a per-member-per month or 
case payment arrangement) that shall assures 
quality, efficiency in relation to an all-inclusive 
approach to payment methods, access to nec-
essary care to achieve the purposes of this sec-
tion, and to the greatest degree possible, the in-
tegration of care, services, and activities de-
scribed in this section with other funding re-
lated to the educational, social and other serv-
ices that an enrolled child may receive. 
‘‘(3) AUTHORITY
TO
CONTRACT.—The State 
may enter into an agreement under this section with 
a program provider that is not a Medicaid managed 
care 
organization 
(as 
defined 
in 
section 
1903(m)(1)(A)) so long as the provider dem-
onstrates the health care expertise and infrastruc-
ture necessary to support the delivery of a program 
of all-inclusive care in accordance with the provisions 
of this section and satisfies such other criteria as the 
State specifies in the State plan amendment filed 
under this section. 
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‘‘(d) RULES OF CONSTRUCTION.—Nothing in this 
section shall be construed as— 
‘‘(1) preventing a program provider from enter-
ing into contracts with other governmental or non-
governmental payers for the care of eligible children 
enrolled with the provider; or 
‘‘(2) affecting the option of a State to offer 
services to medically fragile children under a dem-
onstration or waiver.’’. 
(b) CONFORMING AMENDMENT.—Section 1903(f)(4) 
of such Act (42 U.S.C. 1936b(f)(4)) is amended in the 
matter preceding subparagraph (A) by inserting ‘‘, 1942,’’ 
after ‘‘1905(p)(1)’’. 
(c) STUDY AND REPORT.— 
(1) STUDY.—The Secretary of Health and 
Human Services, in consultation with State Med-
icaid agencies, annually shall conduct a study of the 
quality and cost of providing medical assistance for 
a program of all-inclusive care for eligible children 
under section 1942 of the Social Security Act (as 
added by subsection (a)). Such study shall include 
an analysis of— 
(A) the information submitted to the Sec-
retary under subsection (c)(1)(C) of such sec-
tion 1942; and 
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