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To amend title XVIII of the Social Security Act to modify certain physician payments under the Medicare program.

Introduced Jul 15, 2026 · Last action Jul 15, 2026 Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

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Summary

This legislation is called the To amend title XVIII of the Social Security Act to modify certain physician payments under the Medicare program. It is being reviewed by a committee.

Full bill text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9693 Introduced in House (IH)]

<DOC>

119th CONGRESS
  2d Session
                                H. R. 9693

   To amend title XVIII of the Social Security Act to modify certain
             physician payments under the Medicare program.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             July 15, 2026

 Mr. Joyce of Pennsylvania (for himself, Ms. Schrier, Mr. Murphy, Mr.
  Bera, Mr. Dunn of Florida, Mr. Conaway, Mr. Harris of Maryland, Ms.
Morrison, Mrs. Miller-Meeks, Ms. Dexter, Mrs. Harshbarger, Mr. Veasey,
 Mr. Carter of Georgia, Ms. Sewell, Mr. Onder, Ms. DelBene, Mr. Babin,
 Mr. Panetta, Mr. McCormick, Mr. Suozzi, Mrs. Biggs of South Carolina,
    Mrs. Fletcher, Mr. Bilirakis, Mrs. Trahan, Mrs. Miller of West
    Virginia, Mr. LaHood, Ms. Kelly of Illinois, and Mr. Van Drew)
 introduced the following bill; which was referred to the Committee on
   Energy and Commerce, and in addition to the Committee on Ways and
 Means, for a period to be subsequently determined by the Speaker, in
   each case for consideration of such provisions as fall within the
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

   To amend title XVIII of the Social Security Act to modify certain
             physician payments under the Medicare program.

    Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Patients First Act of 2026''.

        TITLE I--STRENGTHENING REIMBURSEMENT AND PATIENT ACCESS

SEC. 101. MODIFYING THE CONVERSION FACTOR UPDATES APPLICABLE TO
              PHYSICIANS' SERVICES UNDER THE MEDICARE PROGRAM.

    (a) In General.--Section 1848(d) of the Social Security Act (42
U.S.C. 1395w-4(d)) is amended--
            (1) in paragraph (1)(A), in the second sentence, by
        inserting ``or (21)'' after ``paragraph (20)'';
            (2) in paragraph (20)--
                    (A) in the header, by striking ``and subsequent
                years''; and
                    (B) by striking ``and each subsequent year''; and
            (3) by adding at the end the following new paragraph:
            ``(21) Update for 2027 and subsequent years.--
                    ``(A) In general.--For 2027 and each subsequent
                year, the update to the nonqualifying APM conversion
                factor established under paragraph (1)(A) is, subject
                to subparagraph (B), the Secretary's estimate of the
                percentage increase in the MEI (as defined in section
                1842(i)(3)) for the year, less 1 percentage point, and
                the update to the qualifying APM conversion factor
                established under such paragraph is the update to the
                nonqualifying APM conversion factor for the year,
                increased by 0.5 percentage point.
                    ``(B) Floor and ceiling on nonqualifying apm
                conversion factor update.--In the case that the update
                to the nonqualifying APM conversion factor for a year
                as calculated under subparagraph (A) is--
                            ``(i) less than 25 percent of the
                        Secretary's estimate of the percentage increase
                        in the MEI (as defined in section 1842(i)(3))
                        for the year, such update shall be deemed to be
                        equal to 25 percent of such estimate; or
                            ``(ii) more than 75 percent of such
                        estimate, such update shall be deemed to be
                        equal to 75 percent of such estimate.''.
    (b) Reports.--The Secretary of Health and Human Services shall, for
2027 and each year thereafter, submit to Congress a report on the
updates to the qualifying APM conversion factor and nonqualifying APM
conversion factor under section 1848(d) of the Social Security Act (42
U.S.C. 1395w-4(d)) for such year. Such report shall include an analysis
of the impact of such updates on Medicare beneficiaries' access to
services under the Medicare program and on the consolidation of
physician practices.

SEC. 102. HYBRID PAYMENT MODEL FOR PRIMARY CARE SERVICES.

    Part E of title XVIII of the Social Security Act (42 U.S.C. 1395x
et seq.) is amended by inserting after section 1866G the following new
section:

``SEC. 1866H. HYBRID PAYMENT MODEL FOR PRIMARY CARE SERVICES.

    ``(a) In General.--The Secretary shall, for 2027 and each
subsequent year through 2031, carry out a hybrid payment model for
primary care services (in this section referred to as the `model')
under which the Secretary shall make a monthly payment to each
qualifying supplier for each individual attributed to such practice for
such year in lieu of payment for any designated primary care services
furnished by such supplier to such individuals during such year that
would otherwise be made under the payment schedule established under
section 1848 (or on the basis of such schedule).
    ``(b) Payment Amount.--
            ``(1) In general.--The monthly amount payable to a
        qualifying supplier for a year under the model is equal to one-
        twelfth of the national average amount that the Secretary
        estimates will be payable under the payment basis established
        under section 1848 for designated primary care services
        furnished during such year (so estimated as if no cost sharing
        requirements applied to individuals enrolled under part B),
        adjusted by a geographic index determined appropriate by the
        Secretary and risk adjusted in a manner determined appropriate
        by the Secretary.
            ``(2) Nonapplication of cost sharing.--No cost sharing
        requirement shall apply with respect to a monthly payment made
        under the model to a qualifying supplier for an individual
        attributed to such supplier.
    ``(c) Attribution Process.--
            ``(1) In general.--The Secretary shall establish a process
        under which, for each year of the model, individuals enrolled
        under part B who are not enrolled under an MA plan under part C
        may designate a qualifying supplier as such individual's
        primary care provider for such year.
            ``(2) Attribution based on prior claims.--In the case of an
        individual described in paragraph (1) who fails to make a
        designation for a year but for whom the Secretary determines,
        based on claims history of items and services furnished under
        this title, that such individual has a primary care provider
        who is a qualifying supplier, the Secretary may designate such
        supplier as such individual's primary care provider for such
        year.
            ``(3) Treated as attributed.--For purposes of this section,
        each individual who makes a designation under paragraph (1) (or
        for whom such a designation is made under paragraph (2)) with
        respect to a qualifying supplier for a year shall be treated as
        attributed to such supplier for such year.
    ``(d) No Effect on PFS Budget Neutrality.--Section 1848(c)(2)(B)
shall be applied for 2027 and each subsequent year as if the model had
never applied.
    ``(e) Funding.--Payments under the model shall be made from the
Federal Supplementary Medical Insurance Trust Fund established under
section 1841.
    ``(f) Definitions.--In this section:
            ``(1) Designated health care practitioner.--The term
        `designated health care practitioner' means a physician
        assistant, a nurse practitioner, a clinical nurse specialist, a
        physical therapist, an occupational therapist, or such other
        health care practitioner as the Secretary may specify.
            ``(2) Designated primary care services.--The term
        `designated primary care services' means--
                    ``(A) care management services;
                    ``(B) behavioral health integration services;
                    ``(C) office-based evaluation and management
                services (whether furnished in person or via
                telehealth); and
                    ``(D) communications such as telephone calls,
                emails and patient portals between patients and their
                care givers.
            ``(3) Excluded practice.--
                    ``(A) In general.--The term `excluded practice'
                means, subject to subparagraph (B), any practice--
                            ``(i) in which any entity that is not a
                        physician or designated health care
                        practitioner or a professional corporation,
                        professional association, limited liability
                        company, or other professional body that is
                        majority owned and controlled by physicians or
                        designated health care practitioners has an
                        ownership interest;
                            ``(ii) in which any entity described in
                        subparagraph (A) exercises de facto control
                        over employment decisions (including rates of
                        pay and terms of employment), clinical staffing
                        levels, amount of time spent between a supplier
                        and a patient, diagnostic or procedural coding
                        decisions, clinical standards or policy,
                        billing and collection, prices for items and
                        services, contracting with third party payors,
                        or controlling or restricting the practice's
                        assets;
                            ``(iii) in which physicians or designated
                        health care practitioners hold 50 percent or
                        less of voting shares or membership interests;
                            ``(iv) that has a governing board in which
                        physicians or designated health care
                        practitioners constitute less than 50 percent
                        of the members; or
                            ``(v) in the case such practice is a
                        corporation or professional association, that
                        permits the removal of directors or officers
                        that are physicians or designated health care
                        practitioners except by majority vote of
                        stakeholders that are physicians or designated
                        health care practitioners.
                    ``(B) Exception.--The term `excluded practice' does
                not include any practice consisting of 15 or fewer
                designated health care practitioners.
            ``(4) Specified practitioner.--The term `specified
        practitioner' means--
                    ``(A) a physician with a primary specialty or
                practice area of family medicine, internal medicine,
                geriatric medicine, or pediatric medicine; or
                    ``(B) a physician assistant, a nurse practitioner,
                or a clinical nurse specialist.
            ``(5) Qualifying supplier.--The term `qualifying supplier'
        means, with respect to a year, a specified practitioner--
                    ``(A) who is not part of an excluded practice;
                    ``(B) who furnished items and services under this
                title during the preceding year;
                    ``(C) for whom, with respect to payments under this
                title for all items and services furnished by such
                practitioner during the preceding year, at least 60
                percent of such payments were for designated primary
                care services; and
                    ``(D) who has elected to participate in the model
                for such year through such process as the Secretary
                shall establish.''.

SEC. 103. WORK GEOGRAPHIC FLOOR ADJUSTMENT FOR HIGH INFLATIONARY YEARS.

    (a) In General.--Section 1848(e)(1)(E) of the Social Security Act
(42 U.S.C. 1395w-4(e)(1)(E)) is amended--
            (1) by striking the header and inserting ``Work geographic
        index'';
            (2) by striking ``After calculating'' and inserting the
        following:
                            ``(i) In general.--After calculating'';
            (3) in clause (i) (as so inserted)--
                    (A) by inserting ``(or 1.025, in the case such year
                is a high inflationary year (as defined in clause
                (iii)))'' after ``to 1.00''; and
                    (B) by striking ``2027'' and inserting ``2032'';
                and
            (4) by adding at the end the following new clauses:
                            ``(ii) Increase in high inflationary years
                        for other localities.--After calculating the
                        work geographic index in subparagraph (A)(iii),
                        for purposes of payment for services furnished
                        on or after January 1, 2027, and before January
                        1, 2033, the Secretary shall increase the work
                        geographic index by .02 points if such year is
                        a high inflationary year, unless such work
                        geographic index is subject to an increase
                        under clause (i) for such year.
                            ``(iii) Definition.--In this subparagraph,
                        the term `high inflationary year' means a year
                        if, over the 12-month period ending on the last
                        day of the preceding year, the consumer price
                        index for all urban consumers (U.S. city
                        average) increased by more than 2 percent.
                            ``(iv) Publication.--Medicare
                        administrative contractors shall publish the
                        geographically adjusted work relative value
                        units for both the inflation adjustments under
                        clauses (i) and (ii) and the work geographic
                        adjustment for all services on a quarterly
                        basis effective January 1, 2027, for each of
                        their geographic areas.''.
    (b) Report.--Not later than 1 year after the date of the enactment
of this Act, the Comptroller General of the United States shall submit
to the House Energy and Commerce and Ways and Means Committees and
Senate Finance Committee a study on the economic factors that are
impacting physician choice, by specialty, regarding the geographic area
in which such physicians choose to practice, including salaries,
contract terms, cost of living, availability of capital, volume of
services, and costs to conduct a practice.

                            TITLE II--POINTS

SEC. 201. IMPLEMENTATION OF THE PATIENT OUTCOME IMPROVEMENT NATIONAL
              TABULATION SYSTEM.

    (a) In General.--Effective January 1, 2032, there is established
the Patient Outcome Improvement National Tabulation System, which shall
consist of the payment system under section 1848(q) of the Social
Security Act (42 U.S.C. 1395w-4(q)), including as amended by this
section.
    (b) References.--Subject to paragraph (3), any reference to the
payment system under section 1848(q) of the Social Security Act (42
U.S.C. 1395w-4(q)), including the terms ``Merit-based Incentive Payment
System'' and ``MIPS'', shall be deemed a reference to the ``Patient
Outcome Improvement National Tabulation System'' and ``POINTS'',
respectively.
    (c) Transition.--In order to provide for an orderly transition and
avoid provider confusion, the Secretary of Health and Human Services
shall provide for an appropriate transition in the use of the terms
``Merit-based Incentive Payment System'' (and ``MIPS'') and ``Patient
Outcome Improvement National Tabulation System'' (and ``POINTS'') in
reference to the payment system under section 1848(q) of the Social
Security Act (42 U.S.C. 1395w-4(q)). Before the completion of such
transition, any reference to the ``Patient Outcome Improvement National
Tabulation System'' (or ``POINTS'') shall be deemed to include a
reference to the ``Merit-based Incentive Payment System''.

SEC. 202. PAYMENT REFORM.

    (a) In General.--Section 1848(q) of the Social Security Act (42
U.S.C. 1395w-4(q)) is amended--
            (1) in paragraph (1)(D)(i)(II), by striking ``(iv)'' and
        inserting ``(v)'';
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) in clause (iii), by striking ``Clinical
                        practice'' and inserting ``For performance
                        periods beginning before January 1, 2032,
                        clinical practice'';
                            (ii) in clause (iv), by striking
                        ``Meaningful use'' and inserting ``For
                        performance periods before January 1, 2032,
                        meaningful use''; and
                            (iii) by adding at the end the following
                        new clause:
                            ``(v) For performance periods beginning on
                        or after January 1, 2032, care efficiency.'';
                    (B) in subparagraph (B)--
                            (i) in clause (ii)--
                                    (I) by striking ``subparagraph
                                (A)(ii), the measurement'' and
                                inserting the following: ``subparagraph
                                (A)(ii)--
                                    ``(I) for performance periods
                                beginning before January 1, 2032, the
                                measurement''; and
                                    (II) by striking the period at the
                                end and inserting the following: ``;
                                and
                                    ``(II) for performance periods
                                beginning on or after January 1, 2032,
                                the measurement described in subclause
                                (I) and any resource use measures
                                included in the final measures list
                                published under subparagraph (D)(i) for
                                such period.''; and
                            (ii) by inserting after clause (iv) the
                        following new clause:
                            ``(v) Care efficiency.--For the performance
                        category described in subparagraph (A)(v), care
                        efficiency measures (such as measures relating
                        to reductions in avoidable hospitalizations,
                        reductions in medication burden (when
                        clinically appropriate), reductions in
                        complications from chronic diseases, and
                        referral patterns to the lowest-cost clinically
                        appropriate settings) included in the final
                        measures list published under subparagraph
                        (D)(i) for such period.'';
                    (C) in subparagraph (D)--
                            (i) in the header, by striking ``quality'';
                            (ii) in clause (i)--
                                    (I) in the matter preceding
                                subclause (I), by inserting ``(or, with
                                respect to performance periods
                                beginning on or after January 1, 2032,
                                an annual final list of quality
                                measures, resource use measures (if
                                determined appropriate by the
                                Secretary), and care efficiency
                                measures)'' after ``quality measures'';
                                and
                                    (II) in subclause (II)--
                                            (aa) in item (aa), by
                                        striking ``quality measures''
                                        and inserting ``measures'';
                                            (bb) in item (bb), by
                                        inserting ``(or, with respect
                                        to a final list for a
                                        performance period beginning on
                                        or after January 1, 2032, new
                                        quality measures, resource use
                                        measures, or care efficiency
                                        measures)'' after ``quality
                                        measures''; and
                                            (cc) in item (cc), by
                                        striking ``quality measures''
                                        and inserting ``measures'';
                            (iii) in clause (ii)--
                                    (I) in the header, by striking
                                ``quality''; and
                                    (II) in subclause (I)--
                                            (aa) by inserting ``(or,
                                        with respect to such an annual
                                        list for a performance period
                                        beginning on or after January
                                        1, 2032, quality measures,
                                        resource use measures, and care
                                        efficiency measures)'' after
                                        ``submit quality measures'';
                                        and
                                            (bb) by striking ``quality
                                        measures published'' and
                                        inserting ``measures
                                        published'';
                            (iv) in clause (iii)--
                                    (I) in the matter preceding
                                subclause (I), by striking ``quality'';
                                    (II) in subclause (I), by striking
                                ``and'' at the end;
                                    (III) in subclause (II)--
                                            (aa) by striking ``ensure
                                        that'' and inserting ``with
                                        respect to such an annual final
                                        list for a performance period
                                        beginning before January 1,
                                        2032, ensure that''; and
                                            (bb) by striking the period
                                        at the end and inserting ``;
                                        and''; and
                                    (IV) by adding at the end the
                                following new subclause:
                                    ``(III) with respect to such an
                                annual final list for a performance
                                period beginning on or after January 1,
                                2032, provide that--
                                            ``(aa) no quality measure
                                        applicable to a medical
                                        specialty is included on such
                                        list if--

                                                    ``(AA) the task
                                                force established under
                                                subparagraph (E) has
                                                issued recommendations
                                                on quality measures for
                                                use under this
                                                subsection with respect
                                                to such specialty; and

                                                    ``(BB) the quality
                                                measure does not have
                                                in effect such a
                                                recommendation; and

                                            ``(bb) no resource use
                                        measure or care efficiency
                                        measure is included on such
                                        list unless such measure has in
                                        effect a recommendation from
                                        such task force.'';
                            (v) in clause (v), in the matter preceding
                        subclause (I), by inserting ``for a performance
                        period beginning before January 1, 2032,''
                        after ``published under clause (i)'';
                            (vi) in clause (vi), by striking ``under
                        clauses (i), (iv), and (v)'' and inserting
                        ``under this subparagraph''; and
                            (vii) in clause (vii)(II), by striking
                        ``shall be'' and inserting ``subject to clause
                        (iii)(III)(aa), shall be'';
            (3) in paragraph (5)--
                    (A) in subparagraph (B)--
                            (i) in clause (ii)--
                                    (I) in subclause (I)--
                                            (aa) by striking
                                        ``encourage'' and inserting
                                        ``with respect to a performance
                                        period beginning before January
                                        1, 2032, encourage''; and
                                            (bb) by striking ``and'' at
                                        the end;
                                    (II) in subclause (II), by striking
                                the period and inserting ``; and''; and
                                    (III) by adding at the end the
                                following new subclause:
                                    ``(III) with respect to a
                                performance period beginning on or
                                after January 1, 2032, with respect to
                                a year, provide that in the case of a
                                MIPS eligible professional who fails to
                                report on an applicable quality measure
                                through the use of certified EHR
                                technology or clinical data registries,
                                the professional shall be treated as
                                achieving the lowest potential score
                                applicable to such measure.''; and
                            (ii) by adding at the end the following new
                        clause:
                            ``(iii) Incentive to report on certain
                        measures.--
                                    ``(I) In general.--With respect to
                                performance periods for years beginning
                                on or after January 1, 2027, in the
                                case a MIPS eligible professional
                                elects to report on a measure for such
                                period that, with respect to such
                                professional and such period, is a new
                                measure described in subclause (II), a
                                substantively changed measure described
                                in subclause (III), or a measure
                                described in paragraph (2)(B)(i) for
                                which the Secretary is unable to
                                establish a benchmark, such
                                professional shall be treated as
                                achieving the highest possible score
                                with respect to such measure.
                                    ``(II) New measures.--For purposes
                                of subclause (I), a new measure
                                described in this subclause, with
                                respect to a MIPS eligible professional
                                and performance period for a year, is a
                                measure applicable to such professional
                                with respect to the performance
                                category described in paragraph
                                (2)(A)(i) that is included in the final
                                list of quality measures published
                                under paragraph (2)(D)(i) (or the list
                                of quality measures described in
                                paragraph (2)(D)(vi) used by qualified
                                clinical data registries under
                                subsection (m)(3)(E)) for such year but
                                was not included in such final list
                                under paragraph (2)(D)(i) (or list
                                under paragraph (2)(D)(vi)) for any of
                                the previous 3 years.
                                    ``(III) Substantively changed
                                measure.--For purposes of subclause
                                (I), a substantively changed measure
                                described in this subclause, with
                                respect to a MIPS eligible professional
                                and performance period for a year, is a
                                measure applicable to such professional
                                with respect to the performance
                                category described in paragraph
                                (2)(A)(i) that is included in the final
                                list of quality measures published
                                under paragraph (2)(D)(i) (or the list
                                of quality measures described in
                                paragraph (2)(D)(vi) used by qualified
                                clinical data registries under
                                subsection (m)(3)(E)) for such year and
                                each of the previous three years but
                                that underwent a substantive change (as
                                defined by the Secretary) during any of
                                such previous three years.''; and
                    (B) in subparagraph (E)--
                            (i) in clause (i)--
                                    (I) in subclause (I)(aa), by
                                inserting ``(or, with respect to 2032
                                and subsequent years, 65 percent)''
                                after ``thirty percent'';
                                    (II) in subclause (II)(aa), by
                                inserting ``(or, with respect to 2032
                                and subsequent years, 20 percent)''
                                after ``thirty percent'';
                                    (III) in subclause (III), by
                                inserting ``(or, with respect to 2032
                                and subsequent years, 0 percent)''
                                after ``fifteen percent'';
                                    (IV) in subclause (IV), by
                                inserting ``(or, with respect to 2032
                                and subsequent years, 0 percent)''
                                after ``twenty-five percent''; and
                                    (V) by adding at the end the
                                following new subclause:
                                    ``(V) Care efficiency.--With
                                respect to 2032 and subsequent years,
                                15 percent of such score shall be based
                                on performance with respect to the
                                category described in clause (v) of
                                paragraph (2)(A).''; and
                            (ii) in clause (ii), by inserting ``(before
                        2032)'' after ``In any year'';
            (4) in paragraph (11)(A)(i), by striking ``clauses (i)
        through (iv) of''; and
            (5) in paragraph (12)(A)(i)(II), by striking ``and (iv)''
        and inserting ``through (v)''.
    (b) Improvements to Resource Use Performance Category.--Section
1848(r) of the Social Security Act (42 U.S.C. 1395w-4(r)) is amended--
            (1) in paragraph (2)(H), by adding at the end the following
        new sentence: ``In making such revisions for 2027 and
        subsequent years, the Secretary shall revise care episode
        groups and patient condition groups without regard to any
        target described in subparagraph (D)(i)(I).''; and
            (2) in paragraph (5)(C)(i)--
                    (A) by inserting ``, for years before 2027,'' after
                ``shall''; and
                    (B) by inserting ``and shall, for 2027 and
                subsequent years, use such care episode codes and
                patient condition codes'' before the period.

SEC. 203. QUALITY REFORM TASK FORCE.

    Section 1848(q)(2) of the Social Security Act (42 U.S.C. 1395w-
4(q)(2)) is amended by adding at the end the following new
subparagraph:
                    ``(E) Quality reform task force.--
                            ``(i) In general.--Not later than 6 months
                        after the date of the enactment of this
                        subparagraph, the Secretary shall establish a
                        Quality Reform Task Force (in this subparagraph
                        referred to as the `Task Force') for purposes
                        of issuing recommendations with respect to the
                        use of quality, resource use, and care
                        efficiency measures under this subsection.
                            ``(ii) Membership.--
                                    ``(I) In general.--Members of the
                                Task Force shall be appointed by the
                                Secretary and shall include--
                                            ``(aa) representatives of
                                        the Department of Health and
                                        Human Services;
                                            ``(bb) representatives of
                                        eligible professional
                                        organizations (as defined in
                                        subparagraph (D)(ii)(II)); and
                                            ``(cc) other experts
                                        determined appropriate by the
                                        Secretary.
                                    ``(II) Appropriate
                                representation.--In making appointments
                                under subclause (I), the Secretary
                                shall ensure that--
                                            ``(aa) each medical
                                        specialty or subspecialty as
                                        determined appropriate by the
                                        Secretary in which a MIPS
                                        eligible professional may
                                        practice is adequately
                                        represented on the Task Force
                                        through a relevant organization
                                        described in subclause (I)(bb)
                                        if a measure relating to such
                                        specialty or subspecialty is
                                        under consideration;
                                            ``(bb) a majority of the
                                        Task Force is comprised of
                                        designated health care
                                        practitioners (as defined in
                                        section 1866H(f)) or
                                        representatives of designated
                                        health care professional-led
                                        professional organizations
                                        described in subclause (I)(bb);
                                            ``(cc) not more than 3
                                        members of the Task Force are
                                        representatives of group health
                                        plans, health insurance
                                        issuers, or Medicare Advantage
                                        organizations; and
                                            ``(dd) at least 1
                                        designated health care
                                        practitioner who is not part of
                                        an excluded practice (as
                                        defined in section 1866H(f))
                                        who practices in a medical
                                        specialty or subspecialty is
                                        included on the Task Force when
                                        the Task Force is considering
                                        measures relating to such
                                        specialty or subspecialty.
                                    ``(III) Maximum number of
                                members.--The number of members of the
                                Task Force may not exceed 25.
                            ``(iii) Duties.--
                                    ``(I) In general.--The Task Force
                                shall, with respect to each performance
                                period beginning on or after January 1,
                                2032--
                                            ``(aa) issue
                                        recommendations on quality,
                                        resource use, and care
                                        efficiency measures for use
                                        under this subsection; and
                                            ``(bb) update any
                                        recommendations previously
                                        issued by the Task Force as
                                        determined appropriate by the
                                        Task Force.
                                    ``(II) Requirements.--The Task
                                Force--
                                            ``(aa) shall ensure that
                                        any measure recommended under
                                        subclause (I) conforms with
                                        applicable clinical guidelines
                                        developed by a professional
                                        organization representing the
                                        medical specialty or
                                        subspecialty to be subject to
                                        such measure and is designed to
                                        promote quality of care,
                                        improve resource use, or reduce
                                        costs;
                                            ``(bb) may only recommend a
                                        quality measure to the extent
                                        that data for such measure can
                                        be submitted through certified
                                        EHR technology, administrative
                                        or billing claims, or a
                                        qualified clinical data
                                        registry;
                                            ``(cc) shall take into
                                        account the circumstances of
                                        practitioners in specialty
                                        types that furnish services
                                        that do not typically involve
                                        face-to-face interaction with
                                        patients (or that typically
                                        involve such interaction only
                                        at the direction of another
                                        practitioner ordering such
                                        services);
                                            ``(dd) shall, in reviewing
                                        measures and making
                                        recommendations, take into
                                        account--

                                                    ``(AA) how the
                                                measure relates to an
                                                episode of care or a
                                                continuum of health
                                                care, as applicable,
                                                involved;

                                                    ``(BB) the context
                                                of the respective
                                                performance category of
                                                such measure and how
                                                the measure may serve
                                                to complement or align
                                                with measures
                                                applicable in other
                                                performance categories
                                                under this subsection;

                                                    ``(CC) measures
                                                developed by qualified
                                                clinical data
                                                registries; and

                                                    ``(DD) consult with
                                                such registries as
                                                necessary in the
                                                development and
                                                evaluation of measures;
                                                and

                                            ``(ee) ensure that the role
                                        of qualified clinical data
                                        registries in the development,
                                        maintenance, and refinement of
                                        measures is preserved or
                                        strengthened.
                            ``(iv) Secretarial response to
                        recommendations.--
                                    ``(I) In general.--Not later than
                                120 days after the Task Force issues
                                recommendations with respect to
                                measures for a performance period, the
                                Secretary shall transmit to the Task
                                Force and to the Committee on Ways and
                                Means and the Committee on Energy and
                                Commerce of the House of
                                Representatives and the Committee on
                                Finance of the Senate a formal written
                                response that, with respect to each
                                such recommendation, affirmatively
                                states one of the following:
                                            ``(aa) The Secretary will
                                        implement the recommendation as
                                        issued.
                                            ``(bb) The Secretary will
                                        implement the recommendation
                                        with specified modifications,
                                        accompanied by a written
                                        explanation of the
                                        modifications and the clinical,
                                        administrative, or program
                                        integrity basis for each such
                                        modification.
                                            ``(cc) The Secretary will
                                        implement the recommendation in
                                        part, accompanied by a written
                                        explanation of which elements
                                        will be implemented and the
                                        basis for declining the
                                        remainder.
                                            ``(dd) The Secretary
                                        declines to implement the
                                        recommendation, accompanied by
                                        a detailed written explanation
                                        of the clinical,
                                        administrative, or program
                                        integrity basis for the
                                        decision.
                                    ``(II) Inclusion of measures.--
                                            ``(aa) In general.--The
                                        Secretary shall include a
                                        measure receiving a
                                        recommendation from the Task
                                        Force for a performance period
                                        in the final measures list
                                        published under subparagraph
                                        (D)(i) for such performance
                                        period unless the Secretary,
                                        not later than 90 days after
                                        receiving the recommendation,
                                        publishes in the Federal
                                        Register a written
                                        determination explaining the
                                        specific clinical,
                                        administrative, or program
                                        integrity basis for excluding
                                        the measure.
                                            ``(bb) Further requirements
                                        for certain recommendations.--
                                        Notwithstanding item (aa), with
                                        respect to any measure
                                        recommended by the Task Force
                                        for a performance period with
                                        the support of not fewer than
                                        75 percent of the members of
                                        the Task Force, the Secretary
                                        may not exclude such measure
                                        from the final measures list
                                        published under subparagraph
                                        (D)(i) for such performance
                                        period unless the Secretary--

                                                    ``(AA) consults
                                                with the task force
                                                regarding such proposed
                                                exclusion; and

                                                    ``(BB) includes in
                                                the written
                                                determination under
                                                subclause (I) a
                                                response to the Task
                                                Force's position and a
                                                specific finding that
                                                the basis for exclusion
                                                outweighs the clinical
                                                judgment of the Task
                                                Force.

                                    ``(III) Annual report.--Not later
                                than March 1 of each year beginning
                                with the first calendar year after the
                                Task Force issues its initial
                                recommendations, the Secretary shall
                                submit to the Committee on Ways and
                                Means and the Committee on Energy and
                                Commerce of the House of
                                Representatives and the Committee on
                                Finance of the Senate, and shall make
                                publicly available on the website of
                                the Centers for Medicare & Medicaid
                                Services, a report that includes, for
                                each recommendation issued by the Task
                                Force during the preceding calendar
                                year--
                                            ``(aa) the text of the
                                        recommendation and the vote of
                                        the Task Force;
                                            ``(bb) the Secretary's
                                        response under subclause (I);
                                            ``(cc) the outcome with
                                        respect to the final measures
                                        list published under
                                        subparagraph (D)(i), including
                                        whether the recommended measure
                                        was included, included with
                                        modifications, or excluded; and
                                            ``(dd) if the measure was
                                        excluded or modified, the
                                        written justification provided
                                        under subclause (I).''.

SEC. 204. MODIFICATION OF MIPS PAYMENT ADJUSTMENTS.

    (a) In General.--Section 1848(q)(6)(B) of the Social Security Act
(42 U.S.C. 1395w-4(q)(6)(B)) is amended--
            (1) in clause (iii), by striking ``and'' at the end;
            (2) in clause (iv), by amending such clause to read as
        follows:
                            ``(iv) for 2022 and subsequent years
                        (through 2026), 9 percent;''; and
            (3) by adding at the end the following new clauses:
                            ``(v) for 2027 through 2031, 2 percent;
                            ``(vi) for 2032, 3 percent;
                            ``(vii) for 2033, 4 percent; and
                            ``(viii) for 2034, 5 percent.''.
    (b) No Reduction in Case of Failure To Provide Feedback.--
            (1) In general.--Section 1848(q)(6) of the Social Security
        Act (42 U.S.C. 1395w-4(q)(6)) is amended by adding at the end
        the following new subparagraph:
                    ``(G) No reduction in payments in case of failure
                to provide feedback.--Notwithstanding the preceding
                provisions of this paragraph, in the case that the
                Secretary fails to provide a MIPS eligible professional
                feedback required under paragraph (12) with respect to
                the performance of such professional for a performance
                period with respect to a year for administrative
                claims-based measures included in the performance
                categories described in subparagraph (A)(i)(II) of such
                paragraph, if application of subparagraph (E) would
                result in a negative adjustment to payment for covered
                professional services furnished by such professional
                during such year, the product otherwise determined
                under such subparagraph for such professional and year
                shall be deemed to be zero.''.
            (2) Modification of feedback requirements.--Section
        1848(q)(12) of the Social Security Act (42 U.S.C. 1395w-
        4(q)(12)) is amended--
                    (A) in subparagraph (A)(i)(II), by inserting
                ``(and, beginning with 2032, shall, on a quarterly
                basis and with respect to administrative claims-based
                measures in accordance with clause (vi))'' after
                ``may''; and
                    (B) by adding at the end the following new clause:
                            ``(vi) Feedback on administrative-claims
                        based measures.--With respect to quarters
                        beginning on or after January 1, 2032, the
                        Secretary shall, not later than 60 days after
                        each such quarter, provide to each MIPS
                        eligible professional, with respect to
                        administrative claims-based measures included
                        in the performance categories described in
                        subparagraph (A)(i)(II), feedback on such
                        professional's performance, including--
                                    ``(I) a description of the patients
                                and episodes attributed with respect to
                                such measures for purposes of assessing
                                the performance of such professional
                                during such quarter;
                                    ``(II) an identification of the
                                items and services furnished by such
                                professional or another individual that
                                will contribute to the assessment of
                                the performance of such professional
                                during such quarter with respect to
                                such measures; and
                                    ``(III) an identification of
                                whether each item or service identified
                                under subitem (BB) for the quarter was
                                furnished by such professional or
                                another individual (and, in the case
                                that the performance of such
                                professional for such quarter with
                                respect to such measures is assessed
                                based on participation in a group
                                practice or other group, whether each
                                such item or service was furnished by
                                such professional, another individual
                                in such group, or another individual
                                outside of such group).''.
    (c) Extension of Additional Incentive Payments for Certain
Professionals.--Section 1848(q)(6) of the Social Security Act (42
U.S.C. 1395w-4(q)(6)) is amended--
            (1) in subparagraph (C)--
                    (A) by inserting ``and for 2032 and each subsequent
                year'' after ``2024,''; and
                    (B) by inserting ``(other than, with respect to
                2032 and each subsequent year, such a professional that
                is part of an excluded practice (as defined in section
                1866H(f)))'' after ``MIPS eligible professional''; and
            (2) in subparagraph (F)(iv)(I), by inserting ``and for 2032
        and each subsequent year'' before the period.
    (d) Reduction in Positive Adjustments for Certain Professionals.--
Section 1848(q)(6) of the Social Security Act (42 U.S.C. 1395w-
4(q)(6)), as amended by paragraph (1), is further amended by adding at
the end the following new subparagraph:
                    ``(H) Reduction in positive adjustments for certain
                professionals.--The Secretary shall reduce each
                positive MIPS adjustment factor otherwise determined
                under this paragraph for a year (beginning with 2032)
                for a MIPS eligible professional who is part of an
                excluded practice (as defined in section 1866H(f)) by
                50 percent. The preceding sentence shall be applied in
                a budget neutral manner.''.

SEC. 205. MODIFYING REQUIREMENTS AND APPROVAL PERIODS FOR QUALIFIED
              CLINICAL DATA REGISTRIES.

    Section 1848(m)(3)(E) of the Social Security Act (42 U.S.C. 1395w-
4(m)(3)(E)) is amended--
            (1) in clause (i), by adding at the end the following:
        ``Beginning January 1, 2027, such requirements shall include a
        requirement that the entity--
                                    ``(I) be established and operated
                                by a professional society that is
                                controlled or led by a designated
                                practitioner (as defined in section
                                1866H) and that has demonstrated
                                expertise in developing evidence-based
                                clinical practice guidelines and
                                quality measures for improving patient
                                outcomes;
                                    ``(II) demonstrates adherence to
                                data quality and fidelity standards,
                                including standards relating to data
                                elements, data completeness, and
                                validation processes;
                                    ``(III) demonstrates capacity to
                                generate timely, actionable feedback to
                                participating practitioners to support
                                continuous quality improvement and
                                track practitioner use of such
                                feedback;
                                    ``(IV) demonstrate transparency in
                                measure development (including the
                                methodology used in such measures and
                                any risk adjustment used in such
                                measures); and
                                    ``(V) has established self-audit or
                                review processes focusing on data
                                accuracy, measure integrity, and
                                appropriate use of results.''; and
            (2) in clause (v), by adding the following flush matter at
        the end:
                        ``A determination or designation made under
                        this clause on or after January 1, 2027, shall
                        be effective for a period of 3 years. At the
                        end of such period, the Secretary (or, in the
                        case of a designation made by an organization,
                        such organization) may extend such
                        determination or designation (as applicable)
                        for subsequent 3-year periods based on a
                        showing by such entity that such entity
                        continues to meet the requirements of clause
                        (i).''.

SEC. 206. EXPANDED ACCESS TO CLAIMS DATA TO FACILITATE RESEARCH AND
              QUALITY IMPROVEMENT.

    (a) In General.--Not later than January 1, 2027, the Secretary of
Health and Human Services shall establish a process to allow a
qualified clinical data registry under section 1848(m)(3)(E) of the
Social Security Act (42 U.S.C. 1395w-4(m)(3)(E)) or a clinician-led
clinical data registry under section 4005 of the 21st Century Cures Act
(Public Law 114-255) to request claims data described in subsection (b)
(in a form and manner determined to be appropriate by the Secretary)
for the purposes of--
            (1) linking such data with clinical outcomes data;
            (2) conducting quality assessments and quality improvement
        activities of providers of services (as defined in subsection
        (u) of section 1861 of the Social Security Act (42 U.S.C.
        1395x) and suppliers (as defined in subsection (d) of such
        section)), reporting the results of such assessments and
        activities to such providers and suppliers, and performing
        risk-adjusted, scientifically valid analyses and research to
        support quality improvement or patient safety; and
            (3) publishing research and quality improvement analyses,
        which may include deidentified combined claims and clinical
        outcomes data.
    (b) Claims Data Described.--For purposes of subsection (a), the
claims data described in this subsection--
            (1) are--
                    (A) claims data under the Medicare program under
                title XVIII of the Social Security Act (42 U.S.C. 1395
                et seq.); and
                    (B) if the Secretary determines appropriate, claims
                data under the Medicaid program under title XIX of such
                Act (42 U.S.C. 1396 et seq.) and the State Children's
                Health Insurance Program under title XXI of such Act
                (42 U.S.C. 1397aa et seq.); and
            (2) may include provider-specific claims data, clinical
        specialty-specific claims data, State-specific claims data, or
        nationwide claims data.
    (c) Treatment of Qualified Clinical Data Registries and Clinician-
Led Clinical Data Registries.--For the purposes of this section,
qualified clinical data registries and clinician-led clinical data
registries shall not be required to be qualified entities, as defined
in section 1874(e)(2) of the Social Security Act (42 U.S.C.
1395kk(e)(2)), or quasi-qualified entities, to access claims data
pursuant to subsection (a).
    (d) Fee.--Data described in subsection (b) shall be made available
to a qualified clinical data registry or clinician-led clinical data
registry under this section at a reasonable fee equal to the cost of
making such data available. Any fee collected pursuant to the preceding
sentence shall be deposited into the Centers for Medicare & Medicaid
Services Program Management Account.

SEC. 207. MODIFICATION OF APPROPRIATE USE CRITERIA DATA COLLECTION FOR
              APPLICABLE IMAGING SERVICES.

    (a) In General.--Section 1834(q) of the Social Security Act (42
U.S.C. 1395m(q)) is amended--
            (1) in paragraph (3)(B)(ii)--
                    (A) in subclause (IV), by striking ``generates and
                provides to the ordering professional a certification
                or documentation that''; and
                    (B) by adding at the end the following new
                subclause:
                                    ``(VIII) Beginning January 1, 2027,
                                the mechanism provides to the
                                Secretary--
                                            ``(aa) the information
                                        described in subclauses (III)
                                        and (IV);
                                            ``(bb) the information
                                        described in paragraph (4)(B);
                                        and
                                            ``(cc) such other
                                        information as the Secretary
                                        determines to be appropriate,
                                        at such time, and in such form
                                        and manner, as the Secretary
                                        may specify.'';
            (2) in paragraph (4)--
                    (A) in subparagraph (A), by striking clause (ii)
                and inserting the following:
                            ``(ii) beginning January 1, 2027, comply
                        with such requirements as the Secretary may
                        establish.'';
                    (B) in subparagraph (B)--
                            (i) in the heading, by striking
                        ``furnishing professional'' and inserting
                        ``qualified clinical decision support
                        mechanism'';
                            (ii) in the matter preceding clause (i)--
                                    (I) by striking ``with January 1,
                                2017'' and inserting ``January 1,
                                2027''; and
                                    (II) by striking ``payment for such
                                service may only be made if the claim
                                for the service includes'' and
                                inserting ``the qualified decision
                                support mechanism shall maintain and
                                report to the Secretary under
                                subparagraph (F)''; and
                            (iii) in clause (iii), by striking ``(if
                        different from the furnishing professional)'';
                    (C) in subparagraph (C), by adding at the end the
                following new clauses:
                            ``(iv) Clinical trials.--An applicable
                        imaging service that is ordered for an
                        individual as part of a clinical trial.
                            ``(v) Small and rural practices.--An
                        applicable imaging service ordered by an
                        ordering professional practicing in a small
                        practice (consisting of 15 or fewer ordering
                        professionals), or a practice in a health
                        professional shortage area (as designated under
                        section 332(a)(1)(A) of the Public Health
                        Service Act) located in a rural area.
                            ``(vi) Specified exemptions.--The following
                        types of applicable imaging services:
                                    ``(I) A mammography.
                                    ``(II) A lung cancer screening
                                performed using computed tomography.
                                    ``(III) A colonography performed
                                using computed tomography.
                                    ``(IV) Such a service furnished to
                                treat an emergency medical condition or
                                a suspected emergency medical
                                condition.
                                    ``(V) Such other preventive or
                                screening imaging services as the
                                Secretary determines appropriate.'';
                    (D) in subparagraph (D), by adding at the end the
                following new clause:
                            ``(iv) Any other payment system determined
                        appropriate by the Secretary.''; and
                    (E) by adding at the end the following new
                subparagraphs:
                    ``(E) Furnishing professional requirement.--
                Beginning January 1, 2027, with respect to an
                applicable imaging service furnished in an applicable
                setting and paid for under an applicable payment system
                (as defined in subparagraph (D)), the furnishing
                professional shall include the national provider
                identifier of the ordering professional (if different
                from the furnishing professional) on the claim for the
                service.
                    ``(F) Reporting requirements.--The Secretary shall
                provide, through guidance or rulemaking, information on
                appropriate ways that each qualified clinical decision
                support mechanism may report the information maintained
                under subparagraph (B) to the Secretary to support the
                Secretary in implementing paragraphs (5) and (6).'';
            (3) in paragraph (5)--
                    (A) in the heading, by striking ``outlier'' and
                inserting ``low compliant'';
                    (B) by striking subparagraphs (A) and (B) and
                inserting the following:
                    ``(A) In general.--With respect to applicable
                imaging services furnished on or after January 1, 2027,
                the Secretary shall determine on an annual basis the
                total number of ordering professionals who are
                designated as low compliant ordering professionals
                under subparagraph (B).
                    ``(B) Low compliant ordering professionals.--The
                Secretary shall designate ordering professionals with a
                compliance rate (as determined under subparagraph (D))
                lower than an amount determined by the Secretary as low
                compliant ordering professionals.'';
                    (C) in paragraph (C), by striking ``outlier'' and
                inserting ``low compliant'';
                    (D) by striking subparagraph (D) and inserting the
                following:
                    ``(D) Determination of compliance rate.--
                            ``(i) In general.--
                                    ``(I) Compliance rates.--For
                                applicable imaging services furnished
                                on or after January 1, 2027, the
                                Secretary shall determine a compliance
                                rate (as defined in clause (ii)) for
                                each ordering professional for a period
                                specified by the Secretary.
                                    ``(II) Use of data.--In determining
                                a compliance rate for an ordering
                                professional under subclause (I), the
                                Secretary shall use data made available
                                to the Secretary by qualified clinical
                                decision support mechanisms published
                                in the list under paragraph (3)(C) that
                                were consulted by the ordering
                                professional for the period specified
                                by the Secretary under subclause (I).
                            ``(ii) Definition of compliance rate.--
                                    ``(I) In general.--In this
                                subparagraph, the term `compliance
                                rate' means, with respect to the
                                requirement under paragraph (4)(A) that
                                an order from an ordering professional
                                for an applicable imaging service was
                                the subject of consultation with a
                                qualified decision support mechanism,
                                the ratio (expressed as a percentage)
                                of--
                                            ``(aa) the number of orders
                                        from such ordering professional
                                        included in a report from one
                                        or more qualified decision
                                        support mechanisms described in
                                        paragraph (3)(B); and
                                            ``(bb) the aggregate number
                                        of such orders from such
                                        ordering professional for such
                                        period.
                                    ``(II) Exclusion of excepted
                                orders.--In calculating the compliance
                                rate for an ordering professional under
                                subclause (I), the Secretary shall
                                exclude from the total number of orders
                                in item (bb) of such subclause any
                                order for an applicable imaging service
                                described in paragraph (4)(C).''; and
                    (E) in subparagraph (E), by striking ``outlier''
                and inserting ``low compliant'';
            (4) by striking paragraph (6) and inserting the following:
            ``(6) Study and report on low compliant ordering
        professionals and utilization of applicable imaging services.--
                    ``(A) In general.--Not later than January 1, 2031,
                and every 5 years thereafter, the Secretary shall
                conduct a study regarding the compliance rates
                calculated under paragraph (5) and submit a report to
                Congress that--
                            ``(i) discusses--
                                    ``(I) such rates and compliance
                                with this subsection;
                                    ``(II) the impact this subsection
                                has on the utilization of applicable
                                imaging services; and
                                    ``(III) potential mechanisms for
                                improving compliance with this
                                subsection, including--
                                            ``(aa) prior authorization
                                        for applicable imaging services
                                        ordered by low compliant
                                        ordering professionals;
                                            ``(bb) any payment
                                        adjustment related to the
                                        services, or a subset of
                                        services, that the Secretary
                                        may designate under the fee
                                        schedule under section 1848; or
                                            ``(cc) other mechanisms
                                        determined appropriate by the
                                        Secretary; and
                            ``(ii) proposes alternative compliance rate
                        thresholds for low compliant ordering
                        professionals for purposes of paragraph
                        (5)(B).''; and
            (5) by adding at the end the following new paragraph:
            ``(8) Specialty society endorsement.--In specifying
        applicable appropriate use criteria for applicable imaging
        services under paragraph (2) and qualified clinical decision
        support mechanisms under paragraph (3), the Secretary shall
        substantially adhere to the approach described in section
        414.94 of title 42, Code of Federal Regulations (as in effect
        on January 1, 2023).''.
    (b) Effective Date.--The amendments made by subsection (a) shall
apply with respect to items and services furnished on or after January
1, 2027.

SEC. 208. RULES OF CONSTRUCTION.

    (a) In General.--None of the amendments made by this title may be
construed to--
            (1) transfer ownership of a measure developed by a
        qualified clinical data registry to the Secretary or any other
        entity without the authorization of the qualified clinical data
        registry; or
            (2) require a qualified clinical data registry to
        relinquish intellectual property rights as a condition of
        having a measure considered for inclusion in the annual final
        list of measures.
    (b) IP.--The Secretary of Health and Human Services shall recognize
that measures developed by qualified clinical data registries are the
intellectual property of such registries, including any specifications,
methodologies, scoring algorithms, specialty or subspecialty
guidelines, and related materials associated with such measures.
Nothing in this title shall prohibit a qualified clinical data registry
from voluntarily licensing a measure to the Secretary or other entities
under terms agreed to by such registry.

                       TITLE III--APM IMPROVEMENT

SEC. 301. QUALIFYING APM PARTICIPANT THRESHOLD FREEZE.

    (a) In General.--Section 1833(z)(2) of the Social Security Act (42
U.S.C. 1395l(z)(2)) is amended--
            (1) in subparagraph (B)--
                    (A) in the header, by striking ``2026 and 2028''
                and inserting ``2029''; and
                    (B) in the matter preceding clause (i), by striking
                ``2026 and 2028'' and inserting ``2029''; and
            (2) in subparagraph (C)--
                    (A) in the header, by striking ``2027 and 2029''
                and inserting ``2030''; and
                    (B) in the matter preceding clause (i), by striking
                ``2027 and 2029'' and inserting ``2030''.
    (b) Conforming Amendments.--Section 1848(q)(1)(C)(iii) of the
Social Security Act (42 U.S.C. 1395w-4(q)(1)(C)(iii)) is amended--
            (1) in subclause (II), in the matter preceding item (aa),
        by striking ``2026 and 2028'' and inserting ``2029''; and
            (2) in subclause (III), the matter preceding item (aa), by
        striking ``2027 and 2029'' and inserting ``2030''.
    (c) Authority To Modify Thresholds.--Section 1848(q)(1)(C)(iii) of
the Social Security Act (42 U.S.C. 1395w-4(q)(1)(C)(iii)) is amended--
            (1) in subclause (II)--
                    (A) in item (aa), by inserting ``(or such lower
                percentage as may be specified by the Secretary)''
                after ``40 percent''; and
                    (B) in item (bb), by inserting ``(or such lower
                percentages as may be specified by the Secretary)''
                after ``respectively''; and
            (2) in subclause (III)--
                    (A) in item (aa), by inserting ``(or such lower
                percentage as may be specified by the Secretary)''
                after ``50 percent''; and
                    (B) in item (bb), by inserting ``(or such lower
                percentages as may be specified by the Secretary)''
                after ``respectively''.

SEC. 302. CMI MODEL REQUIREMENTS.

    Section 1115A of the Social Security Act (42 U.S.C. 1315a) is
amended--
            (1) in subsection (b)(3)(B), by inserting ``, pursuant to
        notice-and-comment rulemaking,'' after ``The Secretary shall'';
            (2) in subsection (c), in the flush matter at the end, by
        adding at the end the following new sentence: ``The Secretary
        may terminate a model expanded under this subsection prior to
        the date set for such termination at the time of such expansion
        only pursuant to notice and comment rulemaking.''; and
            (3) in subsection (g), by adding at the end the following
        new sentence: ``Each such report submitted in 2027 or a
        subsequent year shall contain, with respect to each model
        tested under subsection (b), a description of any savings
        generated by such model.''.

SEC. 303. REPORT ON BARRIERS TO PARTICIPATION IN VALUE-BASED PAYMENT
              MODELS.

    Not later than December 31, 2029, the Comptroller General of the
United States, in consultation with the Medicare Payment Advisory
Commission, shall submit to the Committees on Energy and Commerce and
Ways and Means of the House of Representatives, and the Committee on
Finance of the Senate, a report on ongoing barriers to participation in
value-based payment models for specialty providers under the Medicare
program. Such report shall contain specific policy recommendations to
reduce such barriers.

                TITLE IV--PHYSICIAN PAYMENT IMPROVEMENTS

SEC. 401. UPDATING THE BUDGET NEUTRALITY THRESHOLD.

    Section 1848(c)(2)(B)(ii)(II) of the Social Security Act (42 U.S.C.
1395w-4(c)(2)(B)(ii)(II)) is amended--
            (1) by striking ``Subject to'' and inserting the following:
                                            ``(aa) In general.--Subject
                                        to'';
            (2) in item (aa), as inserted by paragraph (1), by striking
        ``$20,000,000'' and inserting ``the amount specified in item
        (bb) for such year''; and
            (3) by adding at the end the following new items:
                                            ``(bb) Amount specified.--
                                        For purposes of item (aa),
                                        subject to item (cc), the
                                        amount specified in this item
                                        is--

                                                    ``(AA) for years
                                                before 2028,
                                                $20,000,000;

                                                    ``(BB) for 2028,
                                                $57,640,000; and

                                                    ``(CC) for 2029 and
                                                each subsequent year,
                                                the amount specified in
                                                this item for the
                                                preceding year.

                                            ``(cc) Indexing limitation
                                        on annual adjustments.--For
                                        2033 and every subsequent fifth
                                        year, the Secretary shall
                                        increase the amount specified
                                        in item (bb) for such year by
                                        the cumulative percentage
                                        increase in the MEI (as defined
                                        in section 1842(i)(3))
                                        applicable to physicians'
                                        services for each year
                                        occurring during the 5-year
                                        period ending on the last day
                                        of the preceding year.''.

SEC. 402. BUDGET NEUTRALITY CORRECTIONS RELATING TO ESTIMATED
              UTILIZATION.

    (a) In General.--Section 1848(c)(2)(B) of the Social Security Act
(42 U.S.C. 1395w-4(c)(2)(B)) is amended by adding at the end the
following new clause:
                            ``(vii) Budget neutrality corrections
                        relating to estimated utilization.--
                                    ``(I) In general.--In the case of a
                                budget neutrality adjustment applied
                                pursuant to clause (ii)(II) for a year
                                (beginning with 2029) that is
                                determined in part using estimated
                                utilization (as defined in subclause
                                (II)(bb)) with respect to a specified
                                service (as defined in subclause
                                (II)(cc)), the Secretary shall, as part
                                of the final rule establishing the
                                physician fee schedule under this
                                section for the assumption correction
                                period (as defined in subclause
                                (II)(aa)) with respect to such year--
                                            ``(aa) determine the
                                        difference between expenditures
                                        for such service in such year
                                        using estimated utilization and
                                        actual utilization for such
                                        service (in a manner determined
                                        appropriate by the Secretary);
                                        and
                                            ``(bb) in the case that the
                                        Secretary determines the
                                        difference described in item
                                        (aa) is greater than the
                                        threshold amount (as defined in
                                        subclause (II)(dd)) for such
                                        year, adjust the conversion
                                        factor under this section for
                                        such assumption correction
                                        period by such amount to
                                        reconcile such difference
                                        (which may be positive or
                                        negative), as determined by the
                                        Secretary.
                                    ``(II) Definitions.--For purposes
                                of this clause:
                                            ``(aa) Assumption
                                        correction period.--The term
                                        `assumption correction period'
                                        means, with respect to a year,
                                        the second year beginning after
                                        such year.
                                            ``(bb) Estimated
                                        utilization.--The term
                                        `estimated utilization' means
                                        an estimate of utilization used
                                        for purposes of applying clause
                                        (ii)(II).
                                            ``(cc) Specified service.--
                                        The term `specified service'
                                        means, with respect to a year,
                                        a service--

                                                    ``(AA) with
                                                expected expenditures
                                                for such year under
                                                this section based on
                                                estimated utilization
                                                that exceed the
                                                threshold amount (as
                                                defined in item (dd))
                                                for such year; and

                                                    ``(BB) for which
                                                payment had been
                                                bundled into payment
                                                for another service
                                                during the preceding
                                                year and for which a
                                                separate payment or
                                                add-on payment is made
                                                during such year.

                                            ``(dd) Threshold amount.--
                                        The term `threshold amount'
                                        means, with respect to a year,
                                        0.1 percent of the total
                                        estimated expenditures under
                                        this part for services
                                        furnished under this section
                                        during such year.''.
    (b) Nonapplication of Budget Neutrality to Reconciliation
Adjustments.--Section 1848(c)(2)(B) of the Social Security Act (42
U.S.C. 1395w-4(c)(2)(B)) is amended--
            (1) in clause (iv)--
                    (A) in subclause (V), by striking ``and'' at the
                end;
                    (B) in subclause (VI), by striking the period and
                inserting ``; and''; and
                    (C) by adding at the end the following new
                subclause:
                                    ``(VII) clause (vii)(I)(bb) for an
                                assumption correction period (as
                                defined in clause (vii)(II)) shall not
                                be taken into account in applying
                                clause (ii)(II) with respect to such
                                period.''; and
            (2) in clause (v), by adding at the end the following new
        subclause:
                                    ``(XII) Reductions attributable to
                                an assumption correction.--For an
                                assumption correction period (as
                                defined in clause (vii)(II)), reduced
                                expenditures attributable to
                                application of clause (vii)(I)(bb) with
                                respect to such period.''.

SEC. 403. TIMELY UPDATES TO DIRECT COSTS USED TO CALCULATE PRACTICE
              EXPENSE RVUS.

    Section 1848(c)(2)(B) of the Social Security Act (42 U.S.C. 1395w-
4(c)(2)(B)), as amended by section 3, is further amended by adding at
the end the following new clause:
                            ``(viii) Timely updates to direct costs
                        used to calculate practice expense relative
                        value units.--
                                    ``(I) Simultaneous updates to
                                direct cost inputs at least once every
                                5 years.--The Secretary shall, not less
                                often than every 5 years, update the
                                prices and rates, as applicable, on a
                                category-wide basis for each of the
                                categories of direct cost inputs
                                described in subclause (II) used in the
                                methodology for calculating the
                                practice expense relative value units
                                under this subsection for physicians'
                                services. Updates made pursuant to the
                                previous sentence shall be made in the
                                same year for all categories of direct
                                cost inputs described in such
                                subclause.
                                    ``(II) Direct cost inputs
                                categories described.--For purposes of
                                this clause, the categories of direct
                                cost inputs described in this subclause
                                are clinical staff wage rates, prices
                                of medical supplies, prices of
                                equipment, and any other category of
                                such inputs used in the methodology
                                described in subclause (I) (as
                                specified by the Secretary).
                                    ``(III) Consultation.--In making
                                the updates under this clause, the
                                Secretary shall consult with relevant
                                stakeholders, including physician
                                specialty societies.''.

SEC. 404. LIMITATION ON YEAR-TO-YEAR CONVERSION FACTOR VARIANCE.

    Section 1848(c)(2)(B) of the Social Security Act (42 U.S.C. 1395w-
4(c)(2)(B)), as amended by sections 3 and 4, is further amended by
adding at the end the following new clause:
                            ``(ix) Limitation on conversion factor
                        variance.--
                                    ``(I) In general.--Beginning with
                                2027, the Secretary may not, for
                                purposes of complying with clause
                                (ii)(II), apply a budget neutrality
                                adjustment to a conversion factor
                                established under subsection (d) for
                                such year that would cause such factor,
                                not taking into account any adjustment
                                to such factor for such year provided
                                under such subsection, to vary by more
                                than 2.5 percent compared to such
                                factor so established for the preceding
                                year.
                                    ``(II) Continued applicability of
                                budget neutrality requirement.--Nothing
                                in subclause (I) may be construed to
                                alter the requirement described in
                                clause (ii)(II).''.
                                 <all>

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Status

In Committee

  1. 1Introduced
  2. 2Committee
  3. 3Floor
  4. 4Passed
  5. 5Signed

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