Sec. 7. ESTABLISHING MEDICARE ADMINISTRATIVE CONTRACTOR ERROR REDUCTION INCENTIVES
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## SEC. 7 ESTABLISHING MEDICARE ADMINISTRATIVE CONTRACTOR ERROR REDUCTION INCENTIVES ###
(a)In general Section 1874A(b)(1)(D) of the Social Security Act (42 U.S.C. 1395kk-1(b)(1)(D)) is amended— ####
(1)by striking “ quality.—The Secretary ” and inserting > “quality.— > > > ###### “(i) In general > > Subject to clauses
(ii)and (iii), the Secretary” > ; and ####
(2)by inserting after clause (i), as added by paragraph (1), the following new clauses: > > ###### “(ii) Improper payment rate reduction incentives > > The Secretary shall provide incentives for medicare administrative contractors to reduce the improper payment error rates in their jurisdictions. > > > ###### “(iii) Incentives > > The incentives provided for under clause (ii)— > > > ###### “(I) > > may include a sliding scale of award fee payments and additional incentives to medicare administrative contractors that either reduce the improper payment rates in their jurisdictions to certain thresholds, as determined by the Secretary, or accomplish tasks, as determined by the Secretary, that further improve payment accuracy; and > > > ###### “(II) > > may include substantial reductions in award fee payments under cost-plus-award-fee contracts, for medicare administrative contractors that reach an upper end improper payment rate threshold or other threshold as determined by the Secretary, or fail to accomplish tasks, as determined by the Secretary, that further improve payment accuracy.” > . ###
(b)Effective Date ####
(1)In general The amendments made by subsection
(a)shall apply to contracts entered into or renewed on or after the date that is 3 years after the date of enactment of this Act. ####
(2)Application to existing contracts In the case of contracts in existence on or after the date of the enactment of this Act and that are not subject to the effective date under paragraph (1), the Secretary of Health and Human Services shall, when appropriate and practicable, seek to apply the incentives provided for in the amendments made by subsection
(a)through contract modifications.
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Sec. 7
ESTABLISHING MEDICARE ADMINISTRATIVE CONTRACTOR ERROR REDUCTION INCENTIVES
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