(2) The last sentence of section 1816(c)(1) (42
U.S.C. 1395h(c)(1)) is amended by striking ‘‘or re-
newing’’.
(3) Section 1816(f)(1) (42 U.S.C. 1395h(f)(1))
is amended—
(A) by striking ‘‘, renew, or terminate’’,
and
(B) by striking ‘‘, whether the Secretary
should assign or reassign a provider of services
to an agency or organization,’’.
(4) Section 1816 (42 U.S.C. 1395h) is amended
by striking subsection (g).
(5) The last sentence of section 1842(b)(2)(A)
(42 U.S.C. 1395u(b)(2)(A)) is amended by striking
‘‘or renewing’’.
(6) Section 1842(b) (42 U.S.C. 1395u(b)) is
amended by striking paragraph (5).
(d) REPEAL OF FISCAL INTERMEDIARY REQUIRE-
MENTS
THAT
ARE
NOT
COST-EFFECTIVE.—Section
1816(f)(2) (42 U.S.C. 1395h(f)(2)) is amended to read
as follows:
‘‘(2) The contract performance requirements
developed under paragraph (1) shall include, with
respect to claims for services furnished under this
part by any provider of services other than a hos-
pital, whether such agency or organization is able to
process 75 percent of reconsiderations within 60
days and 90 percent of reconsiderations within 90
days.’’.
(e) REPEAL OF COST REIMBURSEMENT REQUIRE-
MENTS.—
(1) The first sentence of section 1816(c)(1) (42
U.S.C. 1395h(c)(1)) is amended—
(A) by striking the comma after ‘‘appro-
priate’’ and inserting ‘‘and’’, and
(B) by striking ‘‘subsection (a)’’ and all
that follows through the period and inserting
‘‘subsection (a).’’.
(2) Section 1816(c)(1) (42 U.S.C. 1395h(c)(1))
is further amended by striking the second and third
sentences.
(3) The first sentence of section 1842(c)(1) (42
U.S.C. 1395u(c)(1)) is amended—
(A) by striking ‘‘shall provide’’ the first
place it appears and inserting ‘‘may provide’’,
and
(B) by striking ‘‘this part’’ and all that fol-
lows through the period and inserting ‘‘this
part.’’.
(4) Section 1842(c)(1) (42 U.S.C. 1395u(c)(1))
is further amended by striking the second and third
sentences.
(5) Section 2326 of the Deficit Reduction Act
of 1984 is amended by striking subsection (a).
(f) COMPETITION REQUIRED FOR NEW CONTRACTS
AND IN CASES OF POOR PERFORMANCE.—
(1) Section 1816(c) (42 U.S.C. 1395h(c)) is
amended by adding at the end the following new
paragraph:
‘‘(4)(A) A contract with a fiscal intermediary
under this section may be renewed from term to
term without regard to any provision of law requir-
ing competition if the fiscal intermediary has met or
exceeded the performance requirements established
in the current contract.
‘‘(B) Functions may be transferred among fis-
cal intermediaries without regard to any provision of
law requiring competition.’’.
(2) Section 1842(b)(1) (42 U.S.C. 1395u(b)(1))
is amended to read as follows:
‘‘(b)(1)(A) A contract with a carrier under subsection
(a) may be renewed from term to term without regard to
any provision of law requiring competition if the carrier
has met or exceeded the performance requirements estab-
lished in the current contract.
‘‘(B) Functions may be transferred among carriers
without regard to any provision of law requiring competi-
tion.’’.
(g) WAIVER OF COMPETITIVE REQUIREMENTS FOR
INITIAL CONTRACTS.—
(1) Contracts that have periods that begin dur-
ing the 1-year period that begins on the first day of
the fourth calendar month that begins after the date
of enactment of this Act may be entered into under
section 1816(a) of the Social Security Act (42
U.S.C. 1395h(a)) without regard to any provision of
law requiring competition.
(2) The amendments made by subsection (f)
apply to contracts that have periods beginning after
the end of the 1-year period specified in paragraph
(1).
(h) EFFECTIVE DATES.—
(1) The amendments made by subsection (c)
apply to contracts that have periods ending on, or
after, the end of the third calendar month that be-
gins after the date of enactment of this Act.
(2) The amendments made by subsections (a),
(b), (d), and (e) apply to contracts that have periods