276 
Subtitle 
C—Encouraging 
Con-
tinuing Medical Education for 
Physicians 
SEC. 3041. EXEMPTING FROM MANUFACTURER TRANS-
PARENCY REPORTING CERTAIN TRANSFERS 
USED FOR EDUCATIONAL PURPOSES. 
(a) IN GENERAL.—Section 1128G(e)(10)(B) of the 
Social Security Act (42 U.S.C. 1320a–7h(e)(10)(B)) is 
amended— 
(1) in clause (iii), by inserting ‘‘, including 
peer-reviewed journals, journal reprints, journal sup-
plements, medical conference reports, and medical 
textbooks’’ after ‘‘patient use’’; and 
(2) by adding at the end the following new 
clause: 
‘‘(xiii) In the case of a covered recipi-
ent who is a physician, an indirect pay-
ment or transfer of value to the covered re-
cipient— 
‘‘(I) for speaking at, or preparing 
educational materials for, an edu-
cational event for physicians or other 
health care professionals that does not 
commercially promote a covered drug, 
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device, biological, or medical supply; 
or 
‘‘(II) that serves the sole purpose 
of providing the covered recipient with 
medical education, such as by pro-
viding the covered recipient with the 
tuition required to attend an edu-
cational event or with materials pro-
vided to physicians at an educational 
event.’’. 
(b) EFFECTIVE DATE.—The amendments made by 
this section shall apply with respect to transfers of value 
made on or after the date of the enactment of this Act. 
Subtitle D—Disposable Medical 
Technologies 
SEC. 3061. TREATMENT OF CERTAIN ITEMS AND DEVICES. 
(a) PAYMENT
FOR
DURABLE
MEDICAL
ITEMS 
(DMI).— 
(1) IN
GENERAL.—Section 1861(s)(2) of the 
Social Security Act (42 U.S.C. 1395x(s)(2)) is 
amended— 
(A) in subparagraph (EE), by striking 
‘‘and’’ at the end; 
(B) in subparagraph (FF), by inserting 
‘‘and’’ at the end; and 
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(C) by adding at the end the following new 
subparagraph: 
‘‘(GG) a durable medical item that administers 
a drug described in section 1927(k)(2)(C) that 
would otherwise be self-administered multiple times 
per day and includes a disposable component and at 
least one component that can withstand repeated 
use, and supplies used in conjunction with such item 
(including the drug administered by such item);’’. 
(2) PAYMENT.— 
(A) PAYMENT AMOUNT FOR DMI.—Section 
1834 of the Social Security Act (42 U.S.C. 
1395m) is amended by adding at the end the 
following new subsection: 
‘‘(r) PAYMENT METHODOLOGY FOR DURABLE MED-
ICAL ITEMS (DMI).—The Secretary shall establish a pay-
ment methodology for a durable medical item described 
in section 1861(s)(2)(GG) and supplies used in conjunc-
tion with such item (other than a drug administered by 
such item) such that the estimated average total payment 
per individual for such items and supplies does not exceed 
the estimated average total payment per individual that 
would otherwise be made (taking into account the applica-
tion of section 1847) for the durable medical equipment 
for which it is a substitute and for supplies used in con-
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junction with such equipment (other than such a drug) 
as determined appropriate by the Secretary.’’. 
(B) 
PAYMENT
FOR
DRUG.—Section 
1842(o)(1)(D) of the Social Security Act (42 
U.S.C. 1395u(o)(1)(D)) is amended— 
(i) in clause (i), by inserting ‘‘or 
drugs administered by a durable medical 
item covered under section 1861(s)(2)(GG) 
on or after January 1, 2017,’’ after ‘‘after 
January 1, 2004,’’; and 
(ii) in clause (ii), by striking ‘‘infu-
sion’’. 
(C) COMPETITIVE
ACQUISITION.—Section 
1847(a)(2) of the Social Security Act (42 
U.S.C. 1395w–3(a)(2)) is amended by adding 
at the end the following new subparagraph: 
‘‘(D) DURABLE MEDICAL ITEM.—A dura-
ble medical item and supplies used in conjunc-
tion with such item, described in section 
1861(s)(2)(GG).’’. 
(3) 
CONFORMING
AMENDMENT.—Section 
1833(a)(1) of the Social Security Act (42 U.S.C. 
1395l(a)(1)) is amended— 
(A) by striking ‘‘and’’ before ‘‘(Z)’’; and 
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(B) by inserting before the semicolon at 
the end the following: ‘‘, and (AA) with respect 
to durable medical items described in section 
1861(s)(2)(GG), the amount paid shall be equal 
to 80 percent of the lesser of the actual charge 
or the amount determined under section 
1834(r)’’. 
(4) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to items furnished on 
or after January 1, 2017. 
(b) PAYMENT
FOR
CERTAIN
DISPOSABLE
DE-
VICES.— 
(1) IN GENERAL.—Section 1834 of the Social 
Security Act (42 U.S.C. 1395m), as amended by 
subsection (a)(2), is further amended by adding at 
the end the following new subsection: 
‘‘(s) PAYMENT
FOR
CERTAIN
DISPOSABLE
DE-
VICES.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
separate payment in the amount established under 
paragraph (3) to a home health agency for a device 
described in paragraph (2) when furnished to an in-
dividual who receives home health services for which 
payment is made under section 1895(b). 
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‘‘(2) DEVICE
DESCRIBED.—For purposes of 
paragraph (1), a device described in this paragraph 
is a disposable device for which, as of January 1, 
2015, there is— 
‘‘(A) a Level I Healthcare Common Proce-
dure Coding System (HCPCS) code for which 
the description for a professional service in-
cludes the furnishing of such device; and 
‘‘(B) a separate Level I HCPCS code for 
a professional service that uses durable medical 
equipment instead of such device. 
‘‘(3) PAYMENT AMOUNT.—The Secretary shall 
establish the separate payment amount for such a 
device such that such amount does not exceed the 
payment that would be made for the HCPCS code 
described in paragraph (2)(A) under section 1833(t) 
(relating to payment for covered OPD services).’’. 
(2) 
CONFORMING
AMENDMENT.—Section 
1861(m)(5) of the Social Security Act (42 U.S.C. 
1395x(m)(5)) is amended by inserting ‘‘and devices 
described in section 1834(s)(2)’’ after ‘‘durable med-
ical equipment’’. 
(3) EFFECTIVE DATE.—The amendments made 
by this subsection shall apply to devices furnished on 
or after January 1, 2017. 
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