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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Children's Hospitals Education
Equity and Research (CHEER) Act of 2005''.

SEC. 2. REAUTHORIZATION OF CHILDREN'S HOSPITALS GRADUATE MEDICAL
EDUCATION PROGRAM.

(a) Extension of Program.--Section 340E(a) of the Public Health
Service Act (42 U.S.C. 256e(a)) is amended by striking ''2005'' and
inserting ''2010''.
(b) Direct Graduate Medical Education.--Section 340E(c) of the
Public Health Service Act (42 U.S.C. 256e(c)) is amended--
(1) in paragraph (1)(B), by inserting ''but without giving
effect to section 1886(h)(7) of such Act)'' after ''section
1886(h)(4) of the Social Security Act''; and
(2) in paragraph (2)(E)(ii), by striking ''described in
subparagraph (C)(ii)'' and inserting ''applied under section
1886(d)(3)(E) of the Social Security Act for discharges
occurring during the preceding fiscal year''.
(c) Nature of Payments.--Section 340E(e)(3) of the Public Health
Service Act (42 U.S.C. 256e(e)(3)) is amended by striking ''made to
pay'' and inserting ''made and pay''.
(d) Authorization of Appropriations.--Section 340E(f) of the Public
Health Service Act (42 U.S.C. 256e(f)) is amended--
(1) in paragraph (1)(A)--
(A) in clause (ii), by striking ''and'';
(B) in clause (iii), by striking the period and
inserting a semicolon; and
(C) by adding at the end the following:
''(iv) for fiscal year 2006, $110,000,000;
and
''(v) for each of fiscal years 2007 through
2010, such sums as may be necessary.''; and
(2) in paragraph (2)--
(A) in the matter preceding subparagraph (A)--
(i) by striking ''There are hereby
authorized'' and inserting ''There are
authorized''; and
(ii) by striking ''(b)(1)(A)'' and
inserting ''(b)(1)(B)'';
(B) in subparagraph (B), by striking ''and'';
(C) in subparagraph (C), by striking the period and
inserting a semicolon; and
(D) by adding at the end the following:
''(D) for fiscal year 2006, $220,000,000; and
''(E) for each of fiscal years 2007 through 2010,
such sums as may be necessary.''.
(e) Technical Amendment.--Section 340E(e)(2) of the Public Health
Service Act (42 U.S.C. 256e(e)(2)) is amended by striking the first
sentence.
(f) Extending Availability of Funds Through the Following Fiscal
Year.--
(1) In general.--Section 340E(f) of the Public Health
Service Act (42 U.S.C. 256e(f)) is amended--
(A) in paragraph (1)(B)--
(i) by inserting ''or for fiscal year 2006
(or any succeeding fiscal year)'' after ''for
fiscal year 2000''; and
(ii) by striking ''fiscal year 2001'' and
inserting ''the end of the succeeding fiscal
year''; and
(B) by adding at the end of paragraph (2) the
following:
''The amounts appropriated under this paragraph for a fiscal
year (beginning with fiscal year 2006) shall remain available
for obligation through the end of the succeeding fiscal
year.''.
(2) Conforming amendment.--Section 340E(b)(2)(A) of the
Public Health Service Act (42 U.S.C. 256e(b)(2)(A)) is amended
by inserting before the period at the end the following: ''plus
the funds remaining available from the previous fiscal year
under paragraph (1)(B) or the second sentence of paragraph (2),
respectively, of such subsection''.
(g) Redistribution of Recouped Amounts.--Section 340E(e)(3) of the
Public Health Service Act (42 U.S.C. 256e(e)(3)) is amended by striking
''to the extent possible.'' and inserting a period and the following:
''To the greatest extent possible, amounts recouped from a hospital are
to be distributed to other hospitals in the same fiscal year. Unless
there is fraud, amounts paid to a hospital without a demand for
recoupment by the end of the fiscal year shall be final and not subject
to recoupment.''.
(h) Appeals Procedures.--Section 340E(e) of the Public Health
Service Act (42 U.S.C. 256e(e)) is amended--
(1) in paragraph (3), by striking the last sentence; and
(2) by adding at the end the following:
''(4) Appeals.--
''(A) In general.--A decision affecting the amount
payable to a hospital pursuant to this section shall--
''(i) be subject to review under section
1878 of the Social Security Act in the same
manner as final determinations of the amount of
payment under section 1886(d) of such Act are
subject to review; and
''(ii) be handled expeditiously so that the
review decision is reflected in the final
reconciliation for the year in which the appeal
is made.
''(B) Limitation.--A review decision pursuant to
this paragraph shall not affect payments for a fiscal
year prior to the fiscal year in which the review
decision is rendered.
''(C) Application to subsequent fiscal years.--The
Secretary shall apply a review decision under this
paragraph in determining the amount of payment for the
appealing hospital in the fiscal year in which the
decision is rendered and in subsequent fiscal years,
unless the law at issue in the review decision is
amended or there are material differences between the
facts for the fiscal year for which the review decision
is rendered and the fiscal year for which payment is
made. Nothing in this section shall be construed to
prohibit a hospital from seeking review of similar
determinations in subsequent fiscal years.''.
Children's Hospitals Education Equity and Research (CHEER) Act of 2005 - Amends the Public Health Service Act to require the Secretary of Health and Human Services to make payments through FY 2010 (currently, through FY 2005) to children's hospitals for expenses associated with operating approved graduate medical residency training programs.

Excludes reductions for unused resident positions when calculating the number of full-time residents in a children's hospital's approved training program for purposes of reimbursing direct expenses.

Requires the Secretary to adjust the proportion of such a hospital's costs attributable to wages for differences in hospital wage levels by geographic area.

Authorizes appropriations through FY 2010 for direct and indirect expenses associated with operating such programs.

Requires that funds appropriated for such programs for a fiscal year remain available for obligation through the end of the succeeding fiscal year.

Limits the ability to recoup funds unless a demand for recoupment is made by the end of the fiscal year.

Sets forth an appeals procedure and limitations on retroactivity for decisions affecting the amount of payments to a hospital for such programs.