Section 5502

SEC. 5502. MEDICARE FEDERALLY QUALIFIED HEALTH CENTER IMPROVEMENTS.

[a] Expansion of Medicare-Covered Preventive Services at Federally Qualified Health Centers-

[1] IN GENERAL- Section 1861[aa][3][A] of the Social Security Act [42 U.S.C. 1395w [aa][3][A]] is amended to read as follows:

'[A] services of the type described subparagraphs [A] through [C] of paragraph [1] and preventive services [as defined in section 1861[ddd][3]]; and'.

[2] EFFECTIVE DATE- The amendment made by paragraph [1] shall apply to services furnished on or after January 1, 2011.

[b] Prospective Payment System for Federally Qualified Health Centers- Section 1834 of the Social Security Act [42 U.S.C. 1395m] is amended by adding at the end the following new subsection:

'[n] Development and Implementation of Prospective Payment System-

'[1] DEVELOPMENT-

'[A] IN GENERAL- The Secretary shall develop a prospective payment system for payment for Federally qualified health services furnished by Federally qualified health centers under this title. Such system shall include a process for appropriately describing the services furnished by Federally qualified health centers.

'[B] COLLECTION OF DATA AND EVALUATION- The Secretary shall require Federally qualified health centers to submit to the Secretary such information as the Secretary may require in order to develop and implement the prospective payment system under this paragraph and paragraph [2], respectively, including the reporting of services using HCPCS codes.

'[2] IMPLEMENTATION-

'[A] IN GENERAL- Notwithstanding section 1833[a][3][B], the Secretary shall provide, for cost reporting periods beginning on or after October 1, 2014, for payments for Federally qualified health services furnished by Federally qualified health centers under this title in accordance with the prospective payment system developed by the Secretary under paragraph [1].

'[B] PAYMENTS-

'[i] INITIAL PAYMENTS- The Secretary shall implement such prospective payment system so that the estimated amount of expenditures under this title for Federally qualified health services in the first year that the prospective payment system is implemented is equal to 103 percent of the estimated amount of expenditures under this title that would have occurred for such services in such year if the system had not been implemented.

'[ii] PAYMENTS IN SUBSEQUENT YEARS- In the year after the first year of implementation of such system, and in each subsequent year, the payment rate for Federally qualified health services furnished in the year shall be equal to the payment rate established for such services furnished in the preceding year under this subparagraph increased by the percentage increase in the MEI [as defined in 1842[i][3]] for the year involved.'.