Overview

Title

To provide States with support to establish integrated care programs for individuals who are dually eligible for Medicare and Medicaid, and for other purposes.

ELI5 AI

The DUALS Act of 2024 wants to help states make sure that people who can use both Medicare and Medicaid get better care by working together. It also wants to make sure that these people can understand and choose their healthcare plans, and not have to worry about hidden costs or problems with their personal information.

Summary AI

The DUALS Act of 2024 aims to help U.S. states create integrated care programs for people who qualify for both Medicare and Medicaid. It outlines plans for states to choose models for providing coordinated healthcare, improve eligibility processes, and enhance the quality of care. The bill also supports outreach efforts and training programs, and sets out specific requirements for integrated care plans. Additionally, it requires states to offer PACE program services more widely and allows certain Medicare-eligible individuals under 55 to access these services.

Published

2024-03-14
Congress: 118
Session: 2
Chamber: SENATE
Status: Introduced in Senate
Date: 2024-03-14
Package ID: BILLS-118s3950is

Bill Statistics

Size

Sections:
28
Words:
11,761
Pages:
58
Sentences:
229

Language

Nouns: 3,702
Verbs: 873
Adjectives: 780
Adverbs: 117
Numbers: 429
Entities: 592

Complexity

Average Token Length:
4.52
Average Sentence Length:
51.36
Token Entropy:
5.52
Readability (ARI):
29.19

AnalysisAI

The proposed DUALS Act of 2024 seeks to revamp how individuals eligible for both Medicare and Medicaid, known as dual eligible individuals, receive their healthcare. This bill aims to bolster state support to establish integrated care programs, which are designed to streamline the process of delivering comprehensive health services to this population. By doing so, the legislation strives to optimize healthcare delivery, improve patient outcomes, and enhance coordination between federal and state agencies.

General Summary

The bill introduces structured state-integrated care programs specifically for individuals eligible for both Medicare and Medicaid. It outlines the responsibilities required from states in implementing these programs, including automatic and voluntary enrollment processes, plan requirements, and provision of services such as Programs of All-Inclusive Care for the Elderly (PACE) to eligible individuals. The legislation aims to improve eligibility determination and consolidate enrollment processes, ensuring comprehensive care for dual eligible individuals while attempting to prevent unwarranted spending by regulating the overlap between the Medicare and Medicaid programs.

Significant Issues

A key issue within the bill is the potential for uncontrolled spending due to ambiguous financial allocations. Several sections, notably those relating to program implementation and funding (Sections 101, 2207, and 2208), use open-ended phrases like "such sums as are necessary," which could result in spending without specific budget limits or stringent oversight. Additionally, mandating states to offer PACE programs without enrollment caps (Section 401) might increase financial burdens on states, raising questions about resource availability and state budget management.

The automatic enrollment provision (Section 2203) raises ethical concerns about individual autonomy and informed consent, as it might place individuals into programs without their explicit understanding or agreement unless they actively opt out. There are also potential privacy concerns arising from the extensive data collection requirements (Section 2205) without clear details on safeguarding the sensitive data of dual eligible individuals.

Potential Public Impact

Broadly, if successfully implemented, the bill could result in a more integrated and streamlined healthcare delivery system for individuals who qualify for both Medicare and Medicaid. By reducing administrative barriers and improving care coordination, the bill could enhance the quality of care for these individuals. However, the financial implications and administrative challenges associated with implementing such a comprehensive system may present substantial hurdles.

Impact on Stakeholders

  • State Agencies: They may face increased administrative and financial pressures to implement these state-integrated care programs. The lack of defined budget caps could result in significant expenditures, impacting state resources.

  • Dual Eligible Individuals: They may benefit from improved care coordination but may also face challenges related to automatic enrollment without fully understanding the implications. Privacy concerns also arise with the collection of personal medical data without explicitly outlined safeguards.

  • Healthcare Providers: Changes in care coordination and plan requirements could lead to adjustments in how care is delivered. The emphasis on integrated care plans could see providers required to adapt operations to align with new standards.

  • Insurance Companies and Brokers: Would need to adapt to restrictions on commissions and plan flexibility, especially in light of new guidelines aimed at preventing conflicts of interest and ensuring individuals are fully informed of their choices.

Overall, the DUALS Act of 2024 carries significant intentions to improve healthcare delivery for a vulnerable population, yet presents various logistical and ethical challenges that must be addressed for effective implementation. Its success will largely depend on balanced execution, careful regulation of funding, and safeguarding individual interests.

Financial Assessment

The DUALS Act of 2024 presents multiple financial elements that are critical to understanding its potential impact. This commentary focuses on the key financial references within the bill and their relation to identified issues.

Financial Allocations and Spending

The bill explicitly outlines financial provisions in several sections:

  • Section 101 and 2207 describe that $50,000,000 is to be allocated during the first two years for establishing and operating a State Ombudsman Office. The funds are distributed based on the ratio of dual eligible individuals in a state relative to the national total.

  • For ongoing expenses related to administration, $50,000,000 is also earmarked to be distributed proportionally among states according to the number of dual eligible individuals. This funding is used for general administrative costs and data collection/reporting.

  • Section 203 secures $50,000,000 annually to support State and local community organizations for outreach and enrollment activities, emphasizing the consistent financial commitment to broadening program access.

Financial Concerns and Oversight

Several potential financial issues arise in the bill:

  1. Uncontrolled Spending and Ambiguity: The sections concerning substantial initial and annual sums—such as the $50,000,000 allocations—raise concerns about the potential for excessive or uncontrolled spending. The lack of precise caps or detailed audits might lead to financial inefficiencies, as suggested by issues with Section 101 and 2207 where the financial allocations could exceed necessary limits without specific checks in place.

  2. Broad Appropriations Language: The frequent use of "such sums as are necessary" throughout the bill, notably in Sections 2207 and 2208, provides a vague financial framework. This broad terminology can pave the way for uncontrolled expenditures due to the absence of concrete budgetary constraints, underpinning concerns over financial accountability and oversight.

  3. State Mandates Without Clear Funding Pathways: Section 401's requirement for states to offer PACE services without limiting enrollment implies potential escalation in state expenses. Without clear funding mechanisms or a strategy to enhance the administrative capacity needed, there could be significant fiscal pressures at the state level, highlighting a need for preemptive fiscal planning.

Additional Financial Implications

  • Operational and Administrative Burden: Section 405 introduces complexities concerning the choice of prescription drug plans. This could lead to administrative burdens and potential financial inefficiencies due to the complexity of managing multiple plans under PACE and Medicare Part D.

  • Data Collection and Privacy Concerns: While Section 2205 requires extensive data collection and reporting, the absence of detailed provisions for safeguarding this data might increase operational costs associated with ensuring privacy and security, alongside potential ethical concerns over sensitive information handling.

In summary, while the DUALS Act of 2024 establishes a financial structure to support integrated care policies, the potential for unchecked financial commitments and the ambiguity surrounding certain financial provisions warrant careful consideration and possibly additional legislative refinement to prevent misallocation and ensure fiscal responsibility.

Issues

  • The lack of specific funding caps and ambiguity in financial allocations across multiple sections (particularly Sections 101 and 2207) might lead to excessive or uncontrolled spending without adequate oversight, raising significant financial concerns.

  • The mandate for States to offer PACE program services without the ability to limit enrollment (Section 401) could lead to increased state expenditures and significant financial implications without addressing funding sources or administrative capabilities.

  • Provisions allowing for automatic enrollment in Section 2203 might lead to individuals being enrolled without fully understanding or consenting to such enrollment unless they opt-out, raising ethical concerns about individual autonomy and informed consent.

  • The use of "such sums as are necessary" for appropriations in multiple sections, including Sections 2208 and 2207, could lead to uncontrolled spending without specific budgetary constraints, raising financial accountability concerns.

  • The requirement for a State ombudsman in Section 2206, with a significant initial funding allocation and unspecified future funding, may lead to financial inefficiencies and lack of accountability in resource distribution.

  • The Section 209 directive to develop maximum staffing ratios for care coordinators lacks specific criteria or target ratios, causing potential inconsistencies and misinterpretation in implementation across states.

  • The over-reliance on cross-referencing various legislative documents throughout the bill, such as Sections 2201 and 206, may create challenges in legal interpretation and understanding, especially for stakeholders not familiar with these documents.

  • The extension of eligibility for PACE to Medicare-eligible individuals under the age of 55 in Section 403 may lead to increased spending without clearly specifying the financial or resource impact on existing programs.

  • Concerns over privacy and data security in Section 2205 due to extensive data collection and lack of detail on safeguards could raise ethical issues related to the protection of dual eligible individuals' sensitive information.

  • Section 405's changes allowing PACE program enrollees to choose a standalone prescription drug plan might lead to increased administrative burdens and complexity in handling multiple plans, impacting financial efficiency and operational efficacy.

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; table of contents Read Opens in new tab

Summary AI

The DUALS Act of 2024 aims to improve care for individuals eligible for both Medicare and Medicaid by establishing state-integrated care programs. It outlines the responsibilities related to state implementation, program development, enrollment, plan requirements, and coordination among federal and state agencies. The Act also addresses improvements in eligibility determination, enrollment processes, care quality, and requires states to offer specific services like PACE to eligible individuals, including those under 55.

101. State implementation Read Opens in new tab

Summary AI

The provisions describe a new federal initiative, "State Integrated Care Programs for Dual Eligible Individuals," which aims to establish integrated care plans for individuals who qualify for both Medicare and Medicaid benefits. The program outlines procedures for automatic and voluntary enrollment, plan requirements, state responsibilities, funding mechanisms, and data reporting standards, ensuring coordinated healthcare services to improve patient outcomes and streamline administrative processes.

Money References

  • — “(1) INITIAL FUNDING.—During the first 2 years in which a State operates the Office, the Secretary shall pay to the State for each such year for expenditures necessary to establish and operate the Office, from amounts appropriated under section 2207(c), an amount equal to $50,000,000 multiplied by the ratio of— “(A) the number of dual eligible individuals in the State; to “(B) the number of dual eligible individuals in all States.
  • Nothing in this title shall prevent a State from providing medical assistance under title XIX to a dual eligible individual for services for which coverage is not provided under the integrated care plan with which the individual is enrolled or from receiving payment under section 1903(a) with respect to expenditures attributable to providing such medical assistance. “(b) Payments to States.—From the sums appropriated under subsection (c), the Secretary shall pay to each State for each calendar year (beginning January 1 of the first full calendar year in which this title is implemented in the State), an amount equal to the sum of the following: “(1) SHARED SAVINGS COMPONENT.—The shared savings payment applicable to the State and the year, as determined in accordance with section 2208(b)(6)(D). “(2) GENERAL ADMINISTRATIVE EXPENSES.—For administrative expenses to carry out this title, other than section 2205, an amount that bears the same proportion to $50,000,000 as the number of dual eligible individuals in the State bears to the number of dual eligible individuals in all States, as determined by the Secretary.
  • “(3) DATA COLLECTION AND REPORTING.—For data collection and reporting expenses under section 2205, an amount that bears the same proportion to $50,000,000 as the number of dual eligible individuals in the State bears to the number of dual eligible individuals in all States, as determined by the Secretary.
  • to annually publish a report regarding the offering and utilization of such benefits, and to study and report to the Secretary on whether to cap the actuarial dollar value allowed for such benefits under titles XVIII, XIX, and XXII.

2201. Definitions Read Opens in new tab

Summary AI

In this section, the term "Director" refers to the head of a specific health care office in the Centers for Medicare & Medicaid Services. "Dual eligible individual" identifies a person who qualifies for both Medicare and Medicaid benefits. "Integrated care plan" describes a program chosen by a state to provide comprehensive care to dual eligible individuals, but it doesn't include a PACE program.

2202. State selection of program models, development, and implementation Read Opens in new tab

Summary AI

Each state needs to choose a program model to provide fully integrated care for individuals who are eligible for both Medicare and Medicaid within a year of the program models being published. The state should work with the Director to implement the model, aiming to enroll people by the fourth year after selection, but may start earlier if ready. A council made up of various stakeholders will be established to assist in the implementation process.

2203. Enrollment in integrated care plans Read Opens in new tab

Summary AI

The section outlines how states can automatically enroll dual eligible individuals in integrated care plans while allowing them to opt out, requiring that they are informed at least 60 days before enrollment. It also covers enrollment conditions, such as needing an in-network primary care provider, and permits enrollment changes monthly or during specified periods, while allowing care coordinators to contact individuals before enrollment becomes effective.

2204. Plan requirements and payments Read Opens in new tab

Summary AI

A state contract with an integrated care plan must meet specific criteria to be valid, such as allowing a 30-day period for continuity of care if a dual eligible individual changes plans, performing a health risk assessment, providing comprehensive benefits, and assigning a care coordinator. It also sets guidelines for care plan creation, transition periods for ongoing treatments, and allows for a frailty adjustment factor in payments.

2205. Data collection and reporting Read Opens in new tab

Summary AI

Each state and integrated care plan must collect and report specific data annually to the Director, including details about age, gender, disability, and other demographics of individuals enrolled in the plan. States may also require integrated care plans to gather additional information.

2206. State ombudsman Read Opens in new tab

Summary AI

Each state must create an Office of the Ombudsman to help people who qualify for both Medicare and Medicaid. This office will support those in special care programs, have enough staff, and receive funding to cover its operation costs, especially in the first two years.

Money References

  • — (1) INITIAL FUNDING.—During the first 2 years in which a State operates the Office, the Secretary shall pay to the State for each such year for expenditures necessary to establish and operate the Office, from amounts appropriated under section 2207(c), an amount equal to $50,000,000 multiplied by the ratio of— (A) the number of dual eligible individuals in the State; to (B) the number of dual eligible individuals in all States.

2207. Funding Read Opens in new tab

Summary AI

The section explains how states will receive funding when they make payments to integrated care plans for Medicaid services. It states that the funding will come from federal sources, including Medicare trust funds, and outlines how this money will be allocated for shared savings, administrative expenses, and data collection related to dual eligible individuals, starting from the first full calendar year the law is enacted in a state.

Money References

  • (b) Payments to States.—From the sums appropriated under subsection (c), the Secretary shall pay to each State for each calendar year (beginning January 1 of the first full calendar year in which this title is implemented in the State), an amount equal to the sum of the following: (1) SHARED SAVINGS COMPONENT.—The shared savings payment applicable to the State and the year, as determined in accordance with section 2208(b)(6)(D). (2) GENERAL ADMINISTRATIVE EXPENSES.—For administrative expenses to carry out this title, other than section 2205, an amount that bears the same proportion to $50,000,000 as the number of dual eligible individuals in the State bears to the number of dual eligible individuals in all States, as determined by the Secretary. (3) DATA COLLECTION AND REPORTING.—For data collection and reporting expenses under section 2205
  • , an amount that bears the same proportion to $50,000,000 as the number of dual eligible individuals in the State bears to the number of dual eligible individuals in all States, as determined by the Secretary.

2208. Federal administration through the Federal Coordinated Health Care Office Read Opens in new tab

Summary AI

The section outlines the responsibilities of the Federal Coordinated Health Care Office (FCHCO) Director, including the development of integrated care programs, unified appeals processes, and quality measures for dual eligible individuals who qualify for both Medicare and Medicaid. It also discusses funding, hiring authority, and requires States to collect and report specific health-related data, with a focus on cooperation between federal and state agencies to improve care and efficiency for these individuals.

Money References

  • (b) Responsibilities of the FCHCO.—In carrying out this title, the Director shall have the following responsibilities: (1) DEVELOPMENT AND PUBLICATION OF INTEGRATED CARE PROGRAM MODELS.—Subject to subsection (c), to develop and, not later than 180 days after the date of enactment of this paragraph, publish, a range of program models (including but not limited to Medicare-Medicaid plans, accountable care organizations, and dual eligible special needs plans) for providing integrated care for dual eligible individuals from which States shall select to develop and administer integrated care programs for dual eligible individuals in accordance with this title. (2) UNIFIED APPEALS PROCESS.—To develop and, not later than 1 year after the date of enactment of this paragraph, publish a unified administrative appeals process for State integrated care programs for dual eligible individuals under this title to use in lieu of other administrative appeals processes involving Medicare and Medicaid. (3) HEALTH RISK ASSESSMENT.—To develop a standardized health risk assessment questionnaire for dual eligible individuals that collects standard demographic data and information relating to food insecurity, access to transportation, internet access, utility difficulty, interpersonal safety, and housing instability. (4) SUPPLEMENTAL BENEFITS STANDARDS AND REPORTING REQUIREMENTS.—To establish standards for reporting by States and integrated care plans under title XXII information relating to the offering and provision of supplemental benefits under section 2204(d)(3), including data relating to enrollment, utilization, and outcomes, to annually publish a report regarding the offering and utilization of such benefits, and to study and report to the Secretary on whether to cap the actuarial dollar value allowed for such benefits under titles XVIII, XIX, and XXII.

102. Providing Federal Coordinated Health Care Office authority over dual snps Read Opens in new tab

Summary AI

For plan years starting on or after January 1, 2025, the Federal Coordinated Health Care Office will take charge of managing the integration of special Medicare Advantage plans designed for individuals with special needs. Additionally, an amendment to the Patient Protection and Affordable Care Act ensures they have the authority to carry out this responsibility.

103. Additional conforming amendments Read Opens in new tab

Summary AI

The section makes updates to the Social Security Act by expanding certain definitions and amending rules related to Medicare and Medicaid enrollment. It allows dual eligible individuals to enroll in new care plans and aims to prevent Medicaid from making duplicate payments for these individuals.

201. Identifying opportunities for State coordination with respect to eligibility determinations Read Opens in new tab

Summary AI

The section requires the Secretary of Health and Human Services to work with states to review and improve how they determine if someone qualifies for certain healthcare benefits, such as those for low-income individuals and Medicare assistance, and to provide guidance to help state and federal systems work better together.

202. Alignment of bidding, reporting, and other dates and deadlines for integrated care plans Read Opens in new tab

Summary AI

The section requires the Director of the Federal Coordinated Health Care Office and the Administrator of the Centers for Medicare & Medicaid Services to review and identify necessary changes to align the important dates and deadlines for integrated care plans under Medicare, Medicaid, and State Integrated Care Programs for Dual Eligible Individuals, ensuring consistency within 180 days after the Act's passage.

203. Grants to State and local community organizations for outreach and enrollment Read Opens in new tab

Summary AI

The Secretary of Health and Human Services will give grants to state and local community organizations to help dual eligible individuals enroll in health plans that provide integrated care. These organizations must follow certain standards to ensure information is accessible and understandable, including being available in multiple languages and accessible formats for people with disabilities. An annual budget of $50 million is allocated for this initiative.

Money References

  • (c) Appropriation.—There is appropriated, out of any money in the Treasury not otherwise appropriated, for the first fiscal year that begins after the date of enactment of this Act, and for each fiscal year thereafter, $50,000,000 to carry out this section. ---

204. Application of model standards to information requirements for integrated care plans Read Opens in new tab

Summary AI

The section requires that within one year of the law being passed, the directors responsible for Medicare and Medicaid must publish guidance or rules. These rules will ensure that any information given to people who qualify for both Medicare and Medicaid meets specific standards.

205. Enrollment through independent brokers Read Opens in new tab

Summary AI

The section requires that, within a year, guidance or regulations be established to ensure that dual eligible individuals can only be enrolled in certain health plans by independent brokers, with brokers receiving commissions only on initial enrollments. If a broker switches an individual to a plan with less integrated care, they must inform the individual about the change and its potential effects on their healthcare.

206. Reducing threshold for look-alike D–SNP plans under Medicare Advantage Read Opens in new tab

Summary AI

In this section, the Secretary of Health and Human Services is instructed to change a regulation concerning Medicare Advantage plans for look-alike D–SNPs by lowering a percentage threshold from 80% to 50%. Additionally, only full-benefit dual eligible individuals will be counted when applying this threshold.

207. Requiring regular update of provider directories Read Opens in new tab

Summary AI

The section requires the Centers for Medicare & Medicaid Services to create rules within a year that ensure Medicare Advantage and integrated care plans regularly update their provider directories. It also mandates including a rating for how current these directories are in the star rating systems for such health plans.

208. Review of hospital quality star rating system Read Opens in new tab

Summary AI

The section requires the Administrator of the Centers for Medicare & Medicaid Services to review the hospital quality star rating system within 180 days of the new law's enactment. They must identify any changes needed to ensure the system collects enough information to accurately measure the quality of hospitals.

209. Requirement for FCHCO and State Medicaid agencies to develop maximum staffing ratios for care coordinators Read Opens in new tab

Summary AI

The section requires the director of the Federal Coordinated Health Care Office to work with State Medicaid agencies to create a plan for a maximum number of patients each care coordinator should handle in integrated care programs for people eligible for both Medicare and Medicaid. This plan must be submitted within 180 days to various government officials and committees.

210. CMMI testing of coverage of partial benefit dual eligible individuals through State Integrated Care Programs Read Opens in new tab

Summary AI

The bill proposes changes to the Social Security Act to test a model that allows states to provide healthcare coverage to individuals who are partially eligible for both Medicare and Medicaid but do not receive full benefits, through partly integrated care programs. This model aims to help low-income individuals who qualify for certain subsidies but not full dual eligibility benefits.

301. Alignment of billing codes under titles XVIII, XIX, and XXII Read Opens in new tab

Summary AI

The section requires the Director of the Federal Coordinated Health Care Office and the Administrator of the Centers for Medicare & Medicaid Services to review billing codes and ensure they are aligned across Medicare, Medicaid, and State Integrated Care Programs for Dual Eligible Individuals. They must also hold a public listening session and recommend any administrative or legislative changes needed for consistency.

401. Requiring States to offer PACE program services to eligible individuals Read Opens in new tab

Summary AI

The bill changes the Social Security Act to require states to offer PACE program services to eligible individuals, removing previous state options to limit enrollment numbers. It also mandates that state plans provide medical assistance for PACE services to those enrolled in a PACE program, with these changes taking effect 180 days after the bill is enacted.

402. Enrollment of PACE beneficiaries at any time Read Opens in new tab

Summary AI

The section allows individuals eligible for the PACE program to enroll at any time, and it provides for adjustments in payment to PACE providers based on when during the month a person enrolls. These changes will take effect 180 days after the law is enacted.

403. Extending eligibility for PACE to medicare-eligible individuals under the age of 55 Read Opens in new tab

Summary AI

The bill section extends eligibility for the PACE program, which helps people with healthcare and support services, to Medicare-eligible individuals who are younger than 55, as long as they qualify for Medicare Part A or Part B. This change takes effect 180 days after the bill is enacted.

404. Removal of quarterly restrictions for submission of a new pace organization application, and removal quarterly restrictions for applications in a new service area Read Opens in new tab

Summary AI

The bill removes restrictions that previously limited how often and where an entity could apply to operate a PACE program, allowing them to submit multiple applications in the same quarter or service area. These changes will be effective 180 days after the bill becomes law.

405. Ensuring Medicare-only PACE program enrollees have a choice of prescription drug plans under Medicare part D Read Opens in new tab

Summary AI

Medicare enrollees in PACE programs will have the option to choose a standalone prescription drug plan starting in 2024. These plans must offer equal or lower out-of-pocket costs than the current PACE plan, and PACE programs are required to educate and assist enrollees in making their choices.