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certification system under subsection (b), including an
analysis of State efforts to adopt licensing standards and
review processes that take into account the fact that coordi-
nated care plan sponsors provide services directly to enroll-
ees through affiliated providers.
‘‘(d) COORDINATED CARE PLAN.—In this section, the
term ‘coordinated care plan’ means a plan described in sec-
tion 1895A(b)(1)(B)(ii).
‘‘(e) TRANSITION RULE FOR CERTAIN RISK CONTRAC-
TORS.—A medicare choice plan sponsor that is an eligible
organization (as defined in section 1876(b)) and that—
‘‘(1) has a risk-sharing contract in effect under
section 1876 as of the date of the enactment of this
part, or
‘‘(2) has an application for such a contract filed
before such date and the contract is entered into before
July 1, 1996,
shall be treated as meeting the Federal standards in effect
under this section for any contract year beginning before
January 1, 2000.
‘‘(f) PARTIAL
CAPITATION
DEMONSTRATION.—The
Secretary shall conduct a demonstration on alternative par-
tial risk-sharing arrangements between the Secretary and
health care providers. The Secretary shall report to Con-
gress no later than December 31, 1998, on the administra-
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tive feasibility of such partial capitation methods and the
information necessary to implement such arrangements.
‘‘SEC. 1895S. REGULATIONS.
‘‘(a) IN GENERAL.—The Secretary shall establish such
regulations as may be necessary to carry out the purposes
of this part, including regulations setting forth the require-
ments to meet all quality, access, and solvency standards
specified in sections 1895I and 1895J.
‘‘(b) USE
OF INTERIM, FINAL REGULATIONS.—In
order to carry out the provisions of this part in a timely
manner, the Secretary may, within 120 days after the date
of the enactment of this part, promulgate regulations de-
scribed in subsection (a) that take effect on an interim
basis, after notice and opportunity for public comment.’’.
(b) COORDINATION WITH FEHBP.—Notwithstanding
any provision of part D of title XVIII of the Social Security
Act (as added by subsection (a)), individuals who are en-
rolled in a health benefit plan under chapter 89 of title 5,
United States Code, shall not be eligible to enroll in high
deductible medicare choice plans described in section
1895A(b)(1)(B)(iii) of such Act until such time as the Di-
rector of the Office of Management and Budget certifies to
the Secretary of Health and Human Services that the Office
of Personnel Management has adopted policies which will
ensure that the enrollment of such individuals in such plans
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will not result in increased expenditures for the Federal
Government for health benefit plans under such chapter.
(c) CONFORMING AMENDMENTS.—
(1) IN GENERAL.—Not later than 90 days after
the date of the enactment of this Act, the Secretary of
Health and Human Services shall submit to the ap-
propriate committees of Congress a legislative pro-
posal providing for such technical and conforming
amendments in the law as are required by the provi-
sions of this chapter.
(2) 
OTHER
AMENDMENTS.—(A) 
Section
1866(a)(1)(O) (42 U.S.C. 1395cc(a)(1)(O)) is amend-
ed—
(i) in the matter preceding clause (i), by in-
serting ‘‘or medicare choice plan under part D’’
after ‘‘eligible organization’’, and
(ii) in clause (i), by inserting ‘‘or under a
contract under part D, ’’ after ‘‘1972,’’.
(B) 
Section 
1882(g)(1) 
(42 
U.S.C.
1395ww(g)(1)) is amended in the first sentence by in-
serting ‘‘, or under a medicare choice plan under part
D’’ before the end period.
(d) EFFECTIVE DATE.—The amendments made by this
section shall apply with respect to contracts effective on and
after January 1, 1997.
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SEC. 7002. TREATMENT OF 1876 ORGANIZATIONS.
(a) TERMINATION OF 1876 RISK-SHARING ORGANIZA-
TIONS.—Section 1876 (42 U.S.C. 1395mm) is amended by
adding at the end the following new subsection:
‘‘(k)(1) Except as provided in paragraph (2), this sec-
tion shall not apply to risk-sharing contracts effective for
contract years beginning on or after January 1, 1997.
‘‘(2) An individual who is enrolled in part B only and
is enrolled in an eligible organization with a risk-sharing
contract under this section on December 31, 1996, may con-
tinue enrollment in such organization. Not later then July