II 113th CONGRESS 1st Session S. 596 IN THE SENATE OF THE UNITED STATES March 18, 2013 Mr. Thune (for himself and Mr. Franken ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To establish pilot projects under the Medicare program to provide incentives for home health agencies to furnish remote patient monitoring services that reduce expenditures under such program.

1. Short title; findings (a) Short title This Act may be cited as the Fostering Independence Through Technology Act of 2013 . (b) Findings Congress makes the following findings: (1) Allowing seniors to remain in their homes longer can delay unnecessary, costly transfers to higher acuity care settings. (2) Remote patient monitoring provides opportunities to control chronic conditions and research shows that approximately 66 percent of total health care spending is associated with care for the over one-in-four Americans with multiple chronic conditions. (3) Current remote patient monitoring programs report patient satisfaction rates of over 90 percent. (4) Due to changes enacted by Congress, hospitals are facing payment penalties for patients that are readmitted to the hospital within 30 days of discharge. (5) Current remote patient monitoring programs that use technology to monitor discharged patients in non-invasive ways have experienced a reduction in hospital readmissions. 2. Remote patient monitoring and support pilot projects (a) Pilot projects (1) In general Not later than 9 months after the date of the enactment of this Act, the Secretary of Health and Human Services (in this section referred to as the Secretary ) shall conduct pilot projects under title XVIII of the Social Security Act for the purpose of providing incentives to home health agencies to furnish remote patient monitoring services that reduce expenditures under such title. (2) Site requirements (A) Urban and Rural The Secretary shall conduct the pilot projects under this section in both urban and rural areas. (B) Site in a small state The Secretary shall conduct at least 1 of the pilot projects in a State with a population of less than 1,000,000. (3) Definitions In this section: (A) Home health agency The term home health agency has the meaning given that term in section 1861(o) of the Social Security Act ( 42 U.S.C. 1395x(o) ). (B) Remote patient monitoring services (i) In general The term remote patient monitoring services means services furnished in the home using remote patient monitoring technology, including in-home technology based professional consultations, patient monitoring, patient training services, clinical observation, assessment, treatment, and any additional services that utilize technologies specified by the Secretary. (ii) Limitation The term remote patient monitoring services shall not include a telecommunication that consists solely of a telephone audio conversation, facsimile, or electronic text mail between a health care professional and a patient. (C) Remote patient monitoring technology The term remote patient monitoring technology means a coordinated system that uses one or more home-based or mobile monitoring devices that are accessed by a patient and automatically transmit clinical data and responses to assessment questions collected on the devices wirelessly or through a telecommunications connection to a server that complies with the Federal regulations (concerning the privacy of individually identifiable health information) promulgated under section 264(c) of the Health Insurance Portability and Accountability Act of 1996, as part of an established plan of care for that patient that includes the review and interpretation of that data by a health care professional. (b) Medicare beneficiaries within the scope of projects (1) In general The Secretary shall specify the criteria for identifying those Medicare beneficiaries who shall be considered within the scope of the pilot projects under this section for purposes of the application of subsection (c) and for the assessment of the effectiveness of the home health agency in achieving the objectives of this section. (2) The criteria specified under paragraph (1)— (A) shall include conditions and clinical circumstances, including congestive heart failure, diabetes, and chronic pulmonary obstructive disease, and other conditions determined appropriate by the Secretary; and (B) may provide for the inclusion in the projects of Medicare beneficiaries who begin receiving home health services under title XVIII of the Social Security Act after the date of the implementation of the projects. (c) Incentives (1) Performance targets The Secretary shall establish for each home health agency participating in a pilot project under this section a performance target using one of the following methodologies, as determined appropriate by the Secretary: (A) Adjusted historical performance target The Secretary shall establish for the agency— (i) a base expenditure amount equal to the average total payments made under parts A, B, and D of title XVIII of the Social Security Act for Medicare beneficiaries determined to be within the scope of the pilot project in a base period determined by the Secretary; and (ii) an annual per capita expenditure target for such beneficiaries, reflecting the base expenditure amount adjusted for risk, changes in costs, and growth rates. (B) Comparative performance target The Secretary shall establish for the agency a comparative performance target equal to the average total payments under such parts A, B, and D during the pilot project for comparable individuals in the same geographic area that are not determined to be within the scope of the pilot project. (2) Payment Subject to paragraph (3), the Secretary shall pay to each participating home care agency a payment for each year under the pilot project equal to a 75 percent share of the total Medicare cost savings realized for such year relative to the performance target under paragraph (1). (3) Limitation on expenditures The Secretary shall limit payments under this section in order to ensure that the aggregate expenditures under title XVIII of the Social Security Act (including payments under this subsection) do not exceed the amount that the Secretary estimates would have been expended if the pilot projects under this section had not been implemented, including any reasonable costs incurred by the Secretary in the administration of the pilot projects. (4) No duplication in participation in shared savings programs A home health agency that participates in any of the following shall not be eligible to participate in the pilot project under this section: (A) A model tested or expanded under section 1115A that involves shared savings under this title or any other program or demonstration project that involves such shared savings. (B) The independence at home medical practice pilot program under section 1866E. (d) Waiver authority The Secretary may waive such provisions of titles XI and XVIII of the Social Security Act as the Secretary determines to be appropriate for the conduct of the pilot projects under this section. (e) Report to Congress Not later than 3 years after the date that the first pilot project under this section is implemented, the Secretary shall submit to Congress a report on the projects. Such report shall contain— (1) a detailed description of the projects, including any changes in clinical outcomes for Medicare beneficiaries under the projects, Medicare beneficiary satisfaction under the projects, utilization of items and services under Medicare parts A, B, and D by Medicare beneficiaries under the projects, and Medicare per-beneficiary and Medicare aggregate spending under the projects; (2) a detailed description of issues related to the expansion of the projects under subsection (f); (3) recommendations for such legislation and administrative actions as the Secretary considers appropriate; and (4) other items considered appropriate by the Secretary. (f) Expansion If the Secretary determines that any of the pilot projects under this section enhance health outcomes for Medicare beneficiaries and reduce expenditures under title XVIII of the Social Security Act, the Secretary shall initiate comparable projects in additional areas. (g) Payments have no effect on other Medicare payments to agencies A payment under this section shall have no effect on the amount of payments that a home health agency would otherwise receive under title XVIII of the Social Security Act for the provision of home health services.