Laws: Cases and Codes : U.S. Code : Title 42 : Section 1395b-8


   
U.S. Code as of: 01/19/04
Section 1395b-8. Chronic care improvement

    (a) Implementation of chronic care improvement programs
      (1) In general
        The Secretary shall provide for the phased-in development,
      testing, evaluation, and implementation of chronic care
      improvement programs in accordance with this section. Each such
      program shall be designed to improve clinical quality and
      beneficiary satisfaction and achieve spending targets with
      respect to expenditures under this subchapter for targeted
      beneficiaries with one or more threshold conditions.
      (2) Definitions
        For purposes of this section:
        (A) Chronic care improvement program
          The term "chronic care improvement program" means a program
        described in paragraph (1) that is offered under an agreement
        under subsection (b) or (c) of this section.
        (B) Chronic care improvement organization
          The term "chronic care improvement organization" means an
        entity that has entered into an agreement under subsection (b)
        or (c) of this section to provide, directly or through
        contracts with subcontractors, a chronic care improvement
        program under this section. Such an entity may be a disease
        management organization, health insurer, integrated delivery
        system, physician group practice, a consortium of such
        entities, or any other legal entity that the Secretary
        determines appropriate to carry out a chronic care improvement
        program under this section.
        (C) Care management plan
          The term "care management plan" means a plan established
        under subsection (d) of this section for a participant in a
        chronic care improvement program.
        (D) Threshold condition
          The term "threshold condition" means a chronic condition,
        such as congestive heart failure, diabetes, chronic obstructive
        pulmonary disease (COPD), or other diseases or conditions, as
        selected by the Secretary as appropriate for the establishment
        of a chronic care improvement program.
        (E) Targeted beneficiary
          The term "targeted beneficiary" means, with respect to a
        chronic care improvement program, an individual who - 
            (i) is entitled to benefits under part A of this subchapter
          and enrolled under part B of this subchapter, but not
          enrolled in a plan under part C of this subchapter;
            (ii) has one or more threshold conditions covered under
          such program; and
            (iii) has been identified under subsection (d)(1) of this
          section as a potential participant in such program.
      (3) Construction
        Nothing in this section shall be construed as - 
          (A) expanding the amount, duration, or scope of benefits
        under this subchapter;
          (B) providing an entitlement to participate in a chronic care
        improvement program under this section;
          (C) providing for any hearing or appeal rights under section
        1395ff, 1395oo of this title, or otherwise, with respect to a
        chronic care improvement program under this section; or
          (D) providing benefits under a chronic care improvement
        program for which a claim may be submitted to the Secretary by
        any provider of services or supplier (as defined in section
        1395x(d) of this title).
    (b) Developmental phase (Phase I)
      (1) In general
        In carrying out this section, the Secretary shall enter into
      agreements consistent with subsection (f) of this section with
      chronic care improvement organizations for the development,
      testing, and evaluation of chronic care improvement programs
      using randomized controlled trials. The first such agreement
      shall be entered into not later than 12 months after December 8,
      2003.
      (2) Agreement period
        The period of an agreement under this subsection shall be for 3
      years.
      (3) Minimum participation
        (A) In general
          The Secretary shall enter into agreements under this
        subsection in a manner so that chronic care improvement
        programs offered under this section are offered in geographic
        areas that, in the aggregate, consist of areas in which at
        least 10 percent of the aggregate number of medicare
        beneficiaries reside.
        (B) Medicare beneficiary defined
          In this paragraph, the term "medicare beneficiary" means an
        individual who is entitled to benefits under part A of this
        subchapter, enrolled under part B of this subchapter, or both,
        and who resides in the United States.
      (4) Site selection
        In selecting geographic areas in which agreements are entered
      into under this subsection, the Secretary shall ensure that each
      chronic care improvement program is conducted in a geographic
      area in which at least 10,000 targeted beneficiaries reside among
      other individuals entitled to benefits under part A of this
      subchapter, enrolled under part B of this subchapter, or both to
      serve as a control population.
      (5) Independent evaluations of Phase I programs
        The Secretary shall contract for an independent evaluation of
      the programs conducted under this subsection. Such evaluation
      shall be done by a contractor with knowledge of chronic care
      management programs and demonstrated experience in the evaluation
      of such programs. Each evaluation shall include an assessment of
      the following factors of the programs:
          (A) Quality improvement measures, such as adherence to
        evidence-based guidelines and rehospitalization rates.
          (B) Beneficiary and provider satisfaction.
          (C) Health outcomes.
          (D) Financial outcomes, including any cost savings to the
        program under this subchapter.
    (c) Expanded implementation phase (Phase II)
      (1) In general
        With respect to chronic care improvement programs conducted
      under subsection (b) of this section, if the Secretary finds that
      the results of the independent evaluation conducted under
      subsection (b)(6) of this section indicate that the conditions
      specified in paragraph (2) have been met by a program (or
      components of such program), the Secretary shall enter into
      agreements consistent with subsection (f) of this section to
      expand the implementation of the program (or components) to
      additional geographic areas not covered under the program as
      conducted under subsection (b) of this section, which may include
      the implementation of the program on a national basis. Such
      expansion shall begin not earlier than 2 years after the program
      is implemented under subsection (b) of this section and not later
      than 6 months after the date of completion of such program.
      (2) Conditions for expansion of programs
        The conditions specified in this paragraph are, with respect to
      a chronic care improvement program conducted under subsection (b)
      of this section for a threshold condition, that the program is
      expected to - 
          (A) improve the clinical quality of care;
          (B) improve beneficiary satisfaction; and
          (C) achieve targets for savings to the program under this
        subchapter specified by the Secretary in the agreement within a
        range determined to be appropriate by the Secretary, subject to
        the application of budget neutrality with respect to the
        program and not taking into account any payments by the
        organization under the agreement under the program for risk
        under subsection (f)(3)(B) of this section.
      (3) Independent evaluations of Phase II programs
        The Secretary shall carry out evaluations of programs expanded
      under this subsection as the Secretary determines appropriate.
      Such evaluations shall be carried out in the similar manner as is
      provided under subsection (b)(5) of this section.
    (d) Identification and enrollment of prospective program
      participants
      (1) Identification of prospective program participants
        The Secretary shall establish a method for identifying targeted
      beneficiaries who may benefit from participation in a chronic
      care improvement program.
      (2) Initial contact by Secretary
        The Secretary shall communicate with each targeted beneficiary
      concerning participation in a chronic care improvement program.
      Such communication may be made by the Secretary and shall include
      information on the following:
          (A) A description of the advantages to the beneficiary in
        participating in a program.
          (B) Notification that the organization offering a program may
        contact the beneficiary directly concerning such participation.
          (C) Notification that participation in a program is
        voluntary.
          (D) A description of the method for the beneficiary to
        participate or for declining to participate and the method for
        obtaining additional information concerning such participation.
      (3) Voluntary participation
        A targeted beneficiary may participate in a chronic care
      improvement program on a voluntary basis and may terminate
      participation at any time.
    (e) Chronic care improvement programs
      (1) In general
        Each chronic care improvement program shall - 
          (A) have a process to screen each targeted beneficiary for
        conditions other than threshold conditions, such as impaired
        cognitive ability and co-morbidities, for the purposes of
        developing an individualized, goal-oriented care management
        plan under paragraph (2);
          (B) provide each targeted beneficiary participating in the
        program with such plan; and
          (C) carry out such plan and other chronic care improvement
        activities in accordance with paragraph (3).
      (2) Elements of care management plans
        A care management plan for a targeted beneficiary shall be
      developed with the beneficiary and shall, to the extent
      appropriate, include the following:
          (A) A designated point of contact responsible for
        communications with the beneficiary and for facilitating
        communications with other health care providers under the plan.
          (B) Self-care education for the beneficiary (through
        approaches such as disease management or medical nutrition
        therapy) and education for primary caregivers and family
        members.
          (C) Education for physicians and other providers and
        collaboration to enhance communication of relevant clinical
        information.
          (D) The use of monitoring technologies that enable patient
        guidance through the exchange of pertinent clinical
        information, such as vital signs, symptomatic information, and
        health self-assessment.
          (E) The provision of information about hospice care, pain and
        palliative care, and end-of-life care.
      (3) Conduct of programs
        In carrying out paragraph (1)(C) with respect to a participant,
      the chronic care improvement organization shall - 
          (A) guide the participant in managing the participant's
        health (including all co-morbidities, relevant health care
        services, and pharmaceutical needs) and in performing
        activities as specified under the elements of the care
        management plan of the participant;
          (B) use decision-support tools such as evidence-based
        practice guidelines or other criteria as determined by the
        Secretary; and
          (C) develop a clinical information database to track and
        monitor each participant across settings and to evaluate
        outcomes.
      (4) Additional responsibilities
        (A) Outcomes report
          Each chronic care improvement organization offering a chronic
        care improvement program shall monitor and report to the
        Secretary, in a manner specified by the Secretary, on health
        care quality, cost, and outcomes.
        (B) Additional requirements
          Each such organization and program shall comply with such
        additional requirements as the Secretary may specify.
      (5) Accreditation
        The Secretary may provide that chronic care improvement
      programs and chronic care improvement organizations that are
      accredited by qualified organizations (as defined by the
      Secretary) may be deemed to meet such requirements under this
      section as the Secretary may specify.
    (f) Terms of agreements
      (1) Terms and conditions
        (A) In general
          An agreement under this section with a chronic care
        improvement organization shall contain such terms and
        conditions as the Secretary may specify consistent with this
        section.
        (B) Clinical, quality improvement, and financial requirements
          The Secretary may not enter into an agreement with such an
        organization under this section for the operation of a chronic
        care improvement program unless - 
            (i) the program and organization meet the requirements of
          subsection (e) of this section and such clinical, quality
          improvement, financial, and other requirements as the
          Secretary deems to be appropriate for the targeted
          beneficiaries to be served; and
            (ii) the organization demonstrates to the satisfaction of
          the Secretary that the organization is able to assume
          financial risk for performance under the agreement (as
          applied under paragraph (3)(B)) with respect to payments made
          to the organization under such agreement through available
          reserves, reinsurance, withholds, or such other means as the
          Secretary determines appropriate.
      (2) Manner of payment
        Subject to paragraph (3)(B), the payment under an agreement
      under - 
          (A) subsection (b) of this section shall be computed on a
        per-member per-month basis; or
          (B) subsection (c) of this section may be on a per-member
        per-month basis or such other basis as the Secretary and
        organization may agree.
      (3) Application of performance standards
        (A) Specification of performance standards
          Each agreement under this section with a chronic care
        improvement organization shall specify performance standards
        for each of the factors specified in subsection (c)(2) of this
        section, including clinical quality and spending targets under
        this subchapter, against which the performance of the chronic
        care improvement organization under the agreement is measured.
        (B) Adjustment of payment based on performance
          (i) In general
            Each such agreement shall provide for adjustments in
          payment rates to an organization under the agreement insofar
          as the Secretary determines that the organization failed to
          meet the performance standards specified in the agreement
          under subparagraph (A).
          (ii) Financial risk for performance
            In the case of an agreement under subsection (b) or (c) of
          this section, the agreement shall provide for a full recovery
          for any amount by which the fees paid to the organization
          under the agreement exceed the estimated savings to the
          programs under this subchapter attributable to implementation
          of such agreement.
      (4) Budget neutral payment condition
        Under this section, the Secretary shall ensure that the
      aggregate sum of medicare program benefit expenditures for
      beneficiaries participating in chronic care improvement programs
      and funds paid to chronic care improvement organizations under
      this section, shall not exceed the medicare program benefit
      expenditures that the Secretary estimates would have been made
      for such targeted beneficiaries in the absence of such programs.
    (g) Funding
      (1) Subject to paragraph (2), there are appropriated to the
    Secretary, in appropriate part from the Federal Hospital Insurance
    Trust Fund and the Federal Supplementary Medical Insurance Trust
    Fund, such sums as may be necessary to provide for agreements with
    chronic care improvement programs under this section.
      (2) In no case shall the funding under this section exceed
    $100,000,000 in aggregate increased expenditures under this
    subchapter (after taking into account any savings attributable to
    the operation of this section) over the 3-fiscal-year period
    beginning on October 1, 2003.



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