item described in section 1833(p))’’ after ‘‘80 per-
cent’’. 
(3) ELIMINATION OF DEDUCTIBLES AND COIN-
SURANCE
FOR
COLORECTAL
CANCER
SCREENING 
TESTS.—Section 1834(d) of the Social Security Act 
(42 U.S.C. 1395m(d)) is amended—
(A) in paragraph (2)(C)—
(i) by striking ‘‘(C) FACILITY
PAY-
MENT
LIMIT.—’’ and all that follows 
through 
‘‘Notwithstanding 
subsections’’ 
and inserting the following: 
‘‘(C) FACILITY PAYMENT LIMIT.—Notwith-
standing subsections’’; 
(ii) by striking ‘‘(I) in accordance’’ 
and inserting the following: 
‘‘(i) in accordance’’; 
(iii) by striking ‘‘(II) are performed’’ 
and all that follows through ‘‘payment 
under’’ and inserting the following: 
‘‘(ii) are performed in an ambulatory 
surgical center or hospital outpatient de-
partment, 
payment under’’; and 
(iv) by striking clause (ii); and 
(B) in paragraph (3)(C)—
(i) by striking ‘‘(C) FACILITY
PAY-
MENT
LIMIT.—’’ and all that follows 
through 
‘‘Notwithstanding 
subsections’’ 
and inserting the following: 
‘‘(C) FACILITY PAYMENT LIMIT.—Notwith-
standing subsections’’; and 
(ii) by striking clause (ii). 
(f) EFFECTIVE DATE.—The amendments made by 
this section shall apply to services furnished on or after 
the day that is 1 year after the date of enactment of this 
Act. 
SEC. 302. COVERAGE OF INITIAL PREVENTIVE PHYSICAL 
EXAMINATION. 
(a) IN GENERAL.—Section 1861(ww) of the Social 
Security Act (42 U.S.C. 1395x(s)(2)), as amended by sec-
tion 206(a), is amended by adding at the end the following 
new paragraph: 
‘‘(7)(A) An initial preventive physical examina-
tion. 
‘‘(B) For purposes of subparagraph (A), the 
term ‘initial preventive physical examination’ means 
physicians’ services consisting of a physical examina-
tion with the goal of health promotion and disease 
detection and includes a history and physical exam, 
a health risk appraisal, and health risk counseling,
and laboratory tests or other items and services as 
determined by the Secretary in consultation with the 
United States Preventive Services Task Force. 
‘‘(C) In the case of any item or service that is 
included as part of an initial preventive physical ex-
amination and that is otherwise separately covered 
under a preceding paragraph of this subsection, the 
item or service shall be treated for purposes of that 
preceding paragraph as having been received at the 
time of such examination.’’. 
(b) CONFORMING
AMENDMENT
APPLYING
FRE-
QUENCY LIMITATIONS.—Section 1862(a) of such Act (42 
U.S.C. 1395y(a)), as amended by section 205(b), is 
amended—
(1) in paragraph (1)—
(A) by striking ‘‘and’’ at the end of sub-
paragraph (I); 
(B) by striking the semicolon at the end of 
subparagraph (J) and inserting ‘‘, and’’; and 
(C) by adding at the end the following new 
subparagraph: 
‘‘(K) in the case of an initial preventive physical 
examination (as defined in section 1861(ww)(7)(B)), 
which is performed not later than 6 months after
the date the individual’s first coverage period begins 
under part B;’’; and 
(2) in paragraph (7), by striking ‘‘or (H)’’ and 
inserting ‘‘(H), or (K)’’. 
(c) APPLICATION OF PAYMENT PROVISIONS.—For 
provisions providing payment for supplemental preventive 
health services (including an initial preventive physical ex-
amination) without application of any deductible or coin-
surance, see the amendments made by section 201(c). 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to services furnished on or after 
January 1, 2004, but only for individuals whose coverage 
period begins on or after such date. 
SEC. 303. PROMOTION OF PREVENTIVE HEALTH BENEFITS. 
In order to promote the use by medicare beneficiaries 
of preventive health benefits, including preventive health 
services (as defined in section 1861(ww) of the Social Se-
curity Act (as added by the preceding provisions of this 
title)) and preventive health items and services described 
in section 1833(p) of such Act (as added by section 301), 
the Secretary shall do the following: 
(1) MEDICARE HANDBOOK AND OTHER ANNUAL 
NOTICES.—Include in any medicare handbook and 
any other annual notice provided to medicare bene-
ficiaries a detailed description of—
(A) the preventive health benefits that are 
covered under the medicare program; and 
(B) the importance of using such benefits. 
(2) FISCAL INTERMEDIARIES AND CARRIERS.—
Require that fiscal intermediaries with a contract 
under section 1816 of the Social Security Act (42 
U.S.C. 1395h) and carriers with a contract under 
section 1842 of such Act (42 U.S.C. 1395u) include 
preventive health benefits messages on Medicare 
Summary Notice Statements and Explanations of 
Medicare Benefits distributed by such entities. 
(3) MEDICARE+CHOICE PLANS.—Require that 
Medicare+Choice 
organizations 
offering 
a 
Medicare+Choice 
plan 
disclose 
under 
section
1852(c)(1)(B) of the Social Security Act (42 U.S.C. 
1395w–22(c)(1)(B)) information regarding the pre-
ventive health benefits that are covered under the 
plan. 
(4) OTHER ACTIVITIES.—Conduct activities in 
addition to those described in paragraphs (1) 
through (3) that the Secretary determines to be use-
ful in disseminating information to medicare bene-
ficiaries regarding—
(A) the preventive health benefits that are 
covered under the medicare program;