Overview

Title

To amend title XVIII of the Social Security Act to extend certain flexibilities and payment adjustments under the Medicare program, and for other purposes.

ELI5 AI

Imagine if going to the doctor was like a fun video call on the computer, and this bill wants to keep it that way for a longer time. It also wants to make sure hospitals and ambulances get the money they need while making rules fairer for people who help buy medicine.

Summary AI

H.R. 8261 aims to extend certain flexibilities and payment adjustments under the Medicare program. It proposes changing requirements for telehealth services, especially expanding eligibility and extending the period these services can be used. The bill also addresses payments to low-volume and Medicare-dependent hospitals, as well as funding for ambulance services. Additionally, it introduces transparency requirements for pharmacy benefit managers and adjustments to payment calculations for hospice care under Medicare.

Published

2024-12-19
Congress: 118
Session: 2
Chamber: HOUSE
Status: Reported in House
Date: 2024-12-19
Package ID: BILLS-118hr8261rh

Bill Statistics

Size

Sections:
13
Words:
9,487
Pages:
54
Sentences:
145

Language

Nouns: 2,821
Verbs: 689
Adjectives: 537
Adverbs: 77
Numbers: 418
Entities: 373

Complexity

Average Token Length:
4.30
Average Sentence Length:
65.43
Token Entropy:
5.54
Readability (ARI):
35.02

AnalysisAI

The bill entitled "To amend title XVIII of the Social Security Act to extend certain flexibilities and payment adjustments under the Medicare program, and for other purposes" seeks to address a range of healthcare-related issues, specifically within the Medicare framework. Its primary focus is on preserving access to telehealth services, ensuring the availability of hospital and ambulance services, and modifying certain financial and structural elements of healthcare provision.

General Summary of the Bill

This legislative proposal comprises several important sections. It aims to extend telehealth flexibilities, particularly those introduced during the pandemic era, by shifting deadlines for telehealth services from 2024 to 2026 and even 2027 in certain cases. The bill also adjusts payment extensions for low-volume hospitals, the Medicare-dependent hospital program, and ambulance services, which have implications for rural and underserved areas.

Furthermore, the bill endeavors to assure transparency and fair practices in pharmacy benefit management and mandates thorough reporting on the use of wearable medical devices and durable medical equipment under Medicare.

Summary of Significant Issues

A notable issue highlighted in the bill is the potential risk of wasteful spending due to extensions of telehealth flexibilities without sufficient supporting data or detailed evaluations of effectiveness. While these extensions aim to improve access, there is concern that without proper justification or oversight, they could lead to inefficient resource allocation.

Another critical point of concern relates to the complexity of reporting requirements for pharmacy benefit managers. The bill requires extensive paperwork, which, although intended to promote transparency, may result in burdensome administrative processes that could obscure utility or efficiency.

Additionally, the extension of payment adjustments for low-volume hospitals introduces complex legal references that might cause confusion among stakeholders and hinder smooth implementation.

Impact on the Public Broadly

For the general public, particularly those in rural or underserved communities, the bill's extension of telehealth services and adjustments for hospital payments may increase accessibility to necessary healthcare services. By reducing geographic barriers and enhancing telehealth options, more individuals might benefit from timely medical consultation and care.

However, there is a potential downside if the proposed changes lead to increased healthcare costs for Medicare recipients or inefficiencies within the system. Without clear mechanisms for assessing effectiveness or addressing potentially arbitrary policy extensions, the public could face higher taxes or reductions in service quality.

Impact on Specific Stakeholders

Healthcare providers, including hospitals and physicians, stand to benefit from continued payment enhancements and telehealth flexibilities, allowing them to serve more patients remotely and sustain operations, particularly in low-population areas. Yet, they might face challenges interpreting complex legal language and ensuring compliance with new documentation requirements.

Pharmacy benefit managers are directly impacted by rigorous new reporting rules aimed at increasing transparency and fairness. While these measures could improve market practices, they may also result in a heavy administrative load that could deter smaller entities or result in increased operational costs.

For patients with limited English proficiency, efforts to improve telehealth access and integration of interpreter services are beneficial but may suffer from broad definitions and lack of detailed guidelines, leading to inconsistent service quality.

Overall, the proposed amendments present a mix of potential advantages, such as improved access and regulatory fairness, alongside challenges related to administrative burdens and the financial implications of extended flexibilities without sufficient evaluative frameworks.

Financial Assessment

The bill H.R. 8261 involves several financial allocations and adjustments under the Medicare program, which could have implications on transparency, cost management, and policy effectiveness.

Section 101: Telehealth Services

While Section 101 extends telehealth flexibilities, there is no direct financial figure associated with this section. However, it's important to consider financial accountability concerns. Extending telehealth services without mechanisms to evaluate effectiveness could lead to wasteful spending. This ties into the issues by raising concerns about unchecked expenditures in the absence of supporting data to assess telehealth's efficacy.

Section 201 & Section 202: Hospital and Ambulance Service Payments

Sections 201 and 202 include extensions of payment adjustments for low-volume hospitals, Medicare-dependent hospitals, and ambulance services. These sections lack direct financial figures but implicitly involve continued or additional spending. The extension for increased inpatient hospital payment adjustments could lead to complexity due to legal references, potentially causing implementation and oversight challenges that have financial dimensions.

Section 302: Pharmacy Benefit Managers

Section 302 sets significant financial allocations and appropriations specifically targeting pharmacy benefit managers:

  • It allocates $113,000,000 for fiscal year 2025 to the Centers for Medicare & Medicaid Services Program Management Account.
  • Additionally, $20,000,000 for fiscal year 2025 is appropriated to the Inspector General of the Department of Health and Human Services.

These funds are intended to enforce new requirements for transparency in pharmacy benefit managers' operations. However, the new reporting and remuneration arrangement complexities outlined in Section 302 could lead to enforcement and compliance challenges. Potentially excessive administrative burdens might arise without demonstrated efficiency, which raises both legal and financial considerations.

Section 301: Clinical Laboratory Test Payments

Section 301 involves revising phase-in plans for Medicare clinical laboratory test payments but lacks specific financial amounts. The ambiguity in how these changes impact financial costs suggests possible increased expenses or burdens on beneficiaries or taxpayers. This reflects issues related to transparency and the difficulty of evaluating effectiveness without clearly outlined financial changes.

Summary

Whether through direct appropriations, like those in Section 302, or implications of extended services without explicit costs, the financial strategies within the bill H.R. 8261 are pivotal. The bill's various financial references and allocations reflect potential challenges and opportunities in managing Medicare's resources effectively. Careful consideration and perhaps further clarity will be essential in addressing the issues outlined, such as ensuring spending efficiency, minimizing complexity, and securing transparent financial operations within the program.

Issues

  • The extension of telehealth flexibilities in SEC. 101 might pose risks of wasteful spending due to the lack of supporting data or mechanisms to evaluate effectiveness, raising financial accountability concerns.

  • The complexity of remuneration arrangements and reporting requirements in SEC. 302 pertaining to pharmacy benefit managers could lead to enforcement and compliance challenges, further compounded by potential excessive administrative burdens without demonstrated efficiency. This issue is both a legal and financial consideration.

  • The lack of clarity in SEC. 301 regarding the impact of Medicare clinical laboratory test payment changes could lead to increased costs for beneficiaries or taxpayers, as well as issues with transparency and effectiveness evaluation. This issue is significant for financial and political reasons.

  • The extension of increased inpatient hospital payment adjustments for certain low-volume hospitals in SEC. 201 may lead to confusion due to complex legal references, potentially impacting oversight and implementation. This raises legal and financial concerns.

  • The absence of clear justification and impact assessment for extending the acute hospital care at home waiver flexibilities until 2029 in SEC. 104 poses questions about long-term financial implications and policy effectiveness.

  • In SEC. 303, the lack of justification for extending hospice cap amount adjustments without an assessment of financial impact could raise concerns about the necessity of the extension and the potential for wasteful spending. This issue is financial in nature.

  • The broad and subjective term 'best practices' used in SEC. 102 could lead to inconsistent implementation across entities when providing telehealth services to individuals with limited English proficiency, raising ethical questions about accessibility and quality of care.

  • The absence of specific codes or modifiers for telehealth recertifications of hospice care eligibility in SEC. 103 could lead to confusion and inconsistent application, presenting legal and administrative challenges.

  • The section on wearable medical devices in SEC. 105 lacks clarity on scope and criteria, which could lead to subjective interpretations and inconsistency in assessments, raising potential technological and policy concerns.

Sections

Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.

1. Short title Read Opens in new tab

Summary AI

The first section of the bill is titled "Preserving Telehealth, Hospital, and Ambulance Access Act" and indicates that this is the short title by which the act may be formally referred to.

101. Extension of certain telehealth flexibilities Read Opens in new tab

Summary AI

The section extends various telehealth flexibilities under the Social Security Act by changing deadlines from 2024 to 2026 for several provisions, including the removal of geographic requirements, eligibility of practitioners, and use of audio-only services. Additionally, it delays the in-person requirements for telehealth mental health services to 2027, allows telehealth as part of hospice care eligibility, and authorizes the Secretary of Health and Human Services to implement these changes.

102. Guidance on furnishing services via telehealth to individuals with limited English proficiency Read Opens in new tab

Summary AI

The bill requires the Secretary of Health and Human Services to create guidelines for providing telehealth services to people who don't speak English well, with a focus on using interpreters, improving access to digital tools, and offering materials in multiple languages. These guidelines will be developed in consultation with different organizations, like healthcare providers, language service companies, and patient advocates.

103. Establishment of modifier for recertifications of hospice care eligibility conducted through telehealth Read Opens in new tab

Summary AI

The amendment to the Social Security Act requires that two years after the enactment of the "Preserving Telehealth, Hospital, and Ambulance Access Act," healthcare providers, like doctors or nurse practitioners, must use certain codes or modifiers in their claims when they perform hospice care recertifications via telehealth.

104. Extending acute hospital care at home waiver flexibilities Read Opens in new tab

Summary AI

The bill extends the "Acute Hospital Care at Home" flexibility until 2029 and requires studies and reports on the program's effectiveness and outcomes to be conducted by September 2024 and 2028, comparing care for patients coming from emergency departments versus those from inpatient hospital stays.

105. Report on wearable medical devices Read Opens in new tab

Summary AI

The section requires the Comptroller General to assess and report to Congress on wearable medical devices. This report will focus on how these devices can assist in clinical decision-making, evaluating their accuracy, the role of artificial intelligence, and recommend policies to maximize benefits and address any challenges.

106. Enhancing certain program integrity requirements for DME under Medicare Read Opens in new tab

Summary AI

The bill aims to strengthen program integrity for durable medical equipment (DME) under Medicare by 2027, allowing the Secretary to include items with abnormal billing patterns on a Master List for review, and potentially subject claims to prepayment review. It also requires a report by 2026 to identify and suggest ways to reduce fraud in clinical diagnostic laboratory tests paid under Medicare.

201. Extension of increased inpatient hospital payment adjustment for certain low-volume hospitals Read Opens in new tab

Summary AI

The bill amends the section of the Social Security Act related to payment adjustments for certain low-volume hospitals, extending increased payments throughout the entirety of fiscal year 2025. It allows the Secretary of Health and Human Services to implement these changes through various means, regardless of other laws.

202. Extension of the Medicare-dependent hospital program Read Opens in new tab

Summary AI

The section extends the deadline for the Medicare-dependent hospital program and related provisions from January 1, 2025, to October 1, 2025. It also modifies the criteria for target amounts and allows hospitals the option to decline reclassification for the year 2025.

203. Extension of add-on payments for ambulance services Read Opens in new tab

Summary AI

The section amends the Social Security Act to extend the expiration date for certain additional payments for ambulance services from January 1, 2025, to October 1, 2025. It also allows the Secretary of Health and Human Services to implement these changes through program instructions or other methods.

301. Revising phase-in of Medicare clinical laboratory test payment changes Read Opens in new tab

Summary AI

The section discusses changes to the timeline and reporting periods for the Medicare clinical lab test payment system. It pushes back the deadlines for reducing payments and the reporting of private payment rates by one year, adjusting implementation years from 2024 to 2025 and from 2025 to 2026. The Secretary of Health and Human Services has the authority to implement these changes through program instructions or other methods.

302. Arrangements with pharmacy benefit managers with respect to prescription drug plans and MA–PD plans Read Opens in new tab

Summary AI

In this section, Congress introduces new rules for how pharmacy benefit managers (PBMs) should operate with prescription drug plans starting in 2027. These rules aim to ensure transparency in pricing, limit the types of income PBMs can receive, and require detailed reporting of drug costs and fees to prevent conflicts of interest and promote fair practices.

Money References

  • (1) PRESCRIPTION DRUG PLANS.—Section 1860D–12 of the Social Security Act (42 U.S.C. 1395w–112) is amended by adding at the end the following new subsection: “(h) Requirements relating to pharmacy benefit managers.—For plan years beginning on or after January 1, 2027: “(1) AGREEMENTS WITH PHARMACY BENEFIT MANAGERS.—Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall provide that any pharmacy benefit manager acting on behalf of such sponsor has a written agreement with the PDP sponsor under which the pharmacy benefit manager, and any affiliates of such pharmacy benefit manager, as applicable, agree to meet the following requirements: “(A) NO INCOME OTHER THAN BONA FIDE SERVICE FEES.— “(i) IN GENERAL.—The pharmacy benefit manager and any affiliate of such pharmacy benefit manager shall not derive any remuneration with respect to any services provided on behalf of any entity or individual, in connection with the utilization of covered part D drugs, from any such entity or individual other than bona fide service fees, subject to clauses (ii) and (iii). “(ii) INCENTIVE PAYMENTS.—For the purposes of this subsection, an incentive payment paid by a PDP sponsor to a pharmacy benefit manager that is performing services on behalf of such sponsor shall be deemed a ‘bona fide service fee’(even if such payment does not otherwise meet the definition of such term under paragraph (7)(B)) if such payment is a flat dollar amount, is consistent with fair market value (as specified by the Secretary), is related to services actually performed by the pharmacy benefit manager or affiliate of such pharmacy benefit manager, on behalf of the entity making such payment, in connection with the utilization of covered part D drugs, and meets additional requirements, if any, as determined appropriate by the Secretary.
  • Such fee must be a flat dollar amount and shall not be directly or indirectly based on, or contingent upon— “(i) drug price, such as wholesale acquisition cost or drug benchmark price (such as average wholesale price); “(ii) the amount of discounts, rebates, fees, or other direct or indirect remuneration with respect to covered part D drugs dispensed to enrollees in a prescription drug plan, except as permitted pursuant to paragraph (1)(A)(ii); “(iii) coverage or formulary placement decisions or the volume or value of any referrals or business generated between the parties to the arrangement; or “(iv) any other amounts or methodologies prohibited by the Secretary. “(C) PHARMACY BENEFIT MANAGER.—The term ‘pharmacy benefit manager’ means any person or entity that, either directly or through an intermediary, acts as a price negotiator or group purchaser on behalf of a PDP sponsor or prescription drug plan, or manages the prescription drug benefits provided by such sponsor or plan, including the processing and payment of claims for prescription drugs, the performance of drug utilization review, the processing of drug prior authorization requests, the adjudication of appeals or grievances related to the prescription drug benefit, contracting with network pharmacies, controlling the cost of covered part D drugs, or the provision of related services.
  • Such term includes any person or entity that carries out one or more of the activities described in the preceding sentence, irrespective of whether such person or entity calls itself a ‘pharmacy benefit manager’.”. (2) MA–PD PLANS.—Section 1857(f)(3) of the Social Security Act (42 U.S.C. 1395w–27(f)(3)) is amended by adding at the end the following new subparagraph: “(F) REQUIREMENTS RELATING TO PHARMACY BENEFIT MANAGERS.—For plan years beginning on or after January 1, 2027, section 1860D–12(h).”. (3) NONAPPLICATION OF PAPERWORK REDUCTION ACT.—Chapter 35 of title 44, United States Code, shall not apply to the implementation of this subsection. (4) FUNDING.— (A) SECRETARY.—In addition to amounts otherwise available, there is appropriated to the Centers for Medicare & Medicaid Services Program Management Account, out of any money in the Treasury not otherwise appropriated, $113,000,000 for fiscal year 2025, to remain available until expended, to carry out this subsection. (B) OIG.—In addition to amounts otherwise available, there is appropriated to the Inspector General of the Department of Health and Human Services, out of any money in the Treasury not otherwise appropriated, $20,000,000 for fiscal year 2025, to remain available until expended, to carry out this subsection.

303. Extending the adjustment to the calculation of hospice cap amounts under the Medicare program Read Opens in new tab

Summary AI

The section amends the Social Security Act to extend the timeframe for calculating certain hospice cap amounts under the Medicare program by one year, changing the end date from 2033 to 2034.