were substituted for ‘80 percent’ in such sec-
tion).’’.
(d) SAFE HARBOR FROM ANTIKICKBACK PROHIBI-
TION.—Section 1128B(b)(3) of the Social Security Act
(42 U.S.C. 1320a–7b(b)(3)) is amended—
(1) in subparagraph (E), by striking ‘‘and’’
after the semicolon at the end;
(2) in subparagraph (F), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(G) any remuneration between a Feder-
ally qualified health center (or an entity con-
trolled by such a health center) and a
Medicare+Choice organization pursuant to the
written 
agreement 
described 
in 
section
1853(j).’’.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to services provided on or after
January 1, 2003, and contract years beginning on or after
such date.
SEC. 3. REVISION OF FEDERALLY QUALIFIED HEALTH CEN-
TER PAYMENT LIMITS.
(a) PER
VISIT
PAYMENT
REQUIREMENTS
FOR
FQHCS.—Section 1833(a)(3)(A) of the Social Security
Act (42 U.S.C. 1395l(a)(3)(A)), as amended by section
2(a), is amended by adding ‘‘(which regulations may not
limit the per visit payment amount, or a component of
such 
amount, 
for 
services 
described 
in 
section
1832(a)(2)(D)(ii))’’ after ‘‘the Secretary may prescribe in
regulations’’.
(b) EFFECTIVE DATE.—The amendment made by
subsection (a) shall apply to services provided on or after
January 1, 2003.
SEC. 4. COVERAGE OF ADDITIONAL FEDERALLY QUALIFIED
HEALTH CENTER SERVICES.
(a) COVERAGE
FOR FQHC AMBULATORY SERV-
ICES.—Section 1861(aa)(3) of the Social Security Act (42
U.S.C. 1395x(aa)(3)) is amended to read as follows:
‘‘(3) The term ‘Federally qualified health center serv-
ices’ means—
‘‘(A) services of the type described in subpara-
graphs (A) through (C) of paragraph (1), and such
other services furnished by a Federally qualified
health center for which payment may otherwise be
made under this title if such services were furnished
by a health care provider or health care professional
other than a Federally qualified health center; and
‘‘(B) preventive primary health services that a
center is required to provide under section 330 of
the Public Health Service Act,
when furnished to an individual as a patient of a Federally
qualified health center.’’.
(b) OFFSITE FQHC SERVICES.—
(1) PATIENTS OF HOSPITALS AND CRITICAL AC-
CESS HOSPITALS.—Section 1862(a)(14) of the Social
Security Act (42 U.S.C. 1395y(a)) is amended by
inserting ‘‘Federally qualified health center serv-
ices,’’ after ‘‘qualified psychologist services,’’.
(2) EXCLUSION
OF
FEDERALLY
QUALIFIED
HEALTH
CENTER
SERVICES
FROM
THE
PPS
FOR
SKILLED NURSING FACILITIES.—Section 1888(e) of
the Social Security Act (42 U.S.C. 1395yy(e)) is
amended—
(A) in paragraph (2)(A)(i)(II), by striking
‘‘clauses (ii) and (iii)’’ and inserting ‘‘clauses
(ii) through (iv)’’; and
(B) by adding at the end of paragraph
(2)(A) the following new clause:
‘‘(iv) 
EXCLUSION
OF
FEDERALLY
QUALIFIED HEALTH CENTER SERVICES.—
Services described in this clause are Feder-
ally qualified health center services (as de-
fined in section 1861(aa)(3)).’’.
(c) TECHNICAL CORRECTIONS.—
(1) Section 1861(aa)(1)(B) of the Social Secu-
rity Act (42 U.S.C. 1395x(aa)(1)(B)) is amended by
striking ‘‘subsection (hh)(1)),,’’ and inserting ‘‘sub-
section (hh)(1)),’’.
(2) 
Clauses 
(i) 
and 
(ii)(II) 
of 
section
1861(aa)(4)(A) of the Social Security Act (42
U.S.C. 1395x(aa)(4)(A)) are each amended by strik-
ing ‘‘(other than subsection (h))’’.
(d) EFFECTIVE DATES.—The amendments made—
(1) by subsections (a) and (b) shall apply to
services furnished on or after January 1, 2003; and
(2) by subsection (c) shall take effect on the
date of enactment of this Act.
SEC. 5. PROVIDING SAFE HARBOR FOR CERTAIN COLLABO-
RATIVE EFFORTS THAT BENEFIT MEDICALLY
UNDERSERVED POPULATIONS.
(a) IN GENERAL.—Section 1128B(b)(3) of the Social
Security Act (42 U.S.C. 1320a–7(b)(3)), as amended by
section 2(d), is amended—
(1) in subparagraph (F), by striking ‘‘and’’
after the semicolon at the end;
(2) in subparagraph (G), by striking the period
at the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(H) any remuneration between a public
or nonprofit private health center entity de-
scribed under clauses (i) and (ii) of section
1905(l)(2)(B) and any individual or entity pro-
viding goods, items, services, donations or
loans, or a combination thereof, to such health
center entity pursuant to a contract, lease,
grant, loan, or other agreement, if such agree-
ment produces a community benefit that will be
used by the health center entity to maintain or
increase the availability or accessibility, or en-
hance the quality, of services provided to a
medically underserved population served by the
health center entity.’’.
(b) RULEMAKING
FOR EXCEPTION
FOR HEALTH
CENTER ENTITY ARRANGEMENTS.—
(1) ESTABLISHMENT.—
(A) 
IN
GENERAL.—The 
Secretary 
of
Health and Human Services (in this subsection
referred to as the ‘‘Secretary’’) shall establish,
on an expedited basis, standards relating to the
exception for health center entity arrangements
to the antikickback penalties described in sec-
tion 1128B(b)(3)(F) of the Social Security Act,
as added by subsection (a).
(B) FACTORS
TO
CONSIDER.—In estab-
lishing standards relating to the exception for
health center entity arrangements under sub-
paragraph (A), the Secretary—
(i) shall extend the exception where
the arrangement between the health center
entity and the other party—
(I) results in savings of Federal
grant funds or increased revenues to
the health center entity;
(II) does not limit or restrict a
patient’s freedom of choice; and
(III) does not interfere with a
health care professional’s independent
medical judgment regarding medically
appropriate treatment; and
(ii) may include other standards and
criteria that are consistent with the intent
of Congress in enacting the exception es-
tablished under this subsection.