H.R.5139 - Living Well with Fatal Chronic Illness Act of 2002107th Congress (2001-2002)
Bill
Hide OverviewSponsor: | Rep. Oberstar, James L. [D-MN-8] (Introduced 07/16/2002) |
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Committees: | House - Energy and Commerce; Ways and Means; Veterans' Affairs |
Latest Action: | House - 08/09/2002 Referred to the Subcommittee on Health. (All Actions) |
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Text: H.R.5139 — 107th Congress (2001-2002)All Information (Except Text)
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Introduced in House (07/16/2002)
[Congressional Bills 107th Congress] [From the U.S. Government Printing Office] [H.R. 5139 Introduced in House (IH)] 107th CONGRESS 2d Session H. R. 5139 To amend title XVIII of the Social Security Act to provide certain caregivers with access to Medicare benefits, to amend the Internal Revenue Code of 1986 to provide a long-term care tax credit, and to provide for programs within the Department of Health and Human Services and Department of Veterans Affairs for patients with fatal chronic illness. _______________________________________________________________________ IN THE HOUSE OF REPRESENTATIVES July 16, 2002 Mr. Oberstar introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means and Veterans' Affairs, 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 provide certain caregivers with access to Medicare benefits, to amend the Internal Revenue Code of 1986 to provide a long-term care tax credit, and to provide for programs within the Department of Health and Human Services and Department of Veterans Affairs for patients with fatal chronic illness. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE; TABLE OF CONTENTS. (a) Short Title.--This Act may be cited as the ``Living Well with Fatal Chronic Illness Act of 2002''. (b) Table of Contents.--The table of contents of this Act is as follows: Sec. 1. Short title; table of contents. Sec. 2. Access to medicare benefits for certain caregivers 55-to-65 years of age. Sec. 3. Long-term care tax credit. Sec. 4. Department of Health and Human Services programs for patients with fatal chronic illnesses. Sec. 5. Programs through Department of Veterans Affairs regarding patients with fatal chronic illnesses. SEC. 2. ACCESS TO MEDICARE BENEFITS FOR CERTAIN CAREGIVERS 55-TO-65 YEARS OF AGE. (a) In General.--Title XVIII of the Social Security Act is amended-- (1) by redesignating section 1859 and part D as section 1858 and part E, respectively; and (2) by inserting after such section the following new part: ``Part D--Purchase of Medicare Benefits by Certain Caregivers Age 55- to-65 Years of Age ``SEC. 1859. PROGRAM BENEFITS; ELIGIBILITY. ``(a) General Description of Program.--This part provides a program of medicare eligibility for those age 55 or older who are caring on a full-time basis for family members and who are not otherwise eligible for group health insurance coverage. ``(b) Entitlement to Medicare Benefits For Enrolled Individuals.-- ``(1) In general.--An individual enrolled under this part is entitled to the same benefits under this title as an individual entitled to benefits under part A and enrolled under part B. ``(2) Definitions.--For purposes of this part: ``(A) Federal or state cobra continuation provision.--The term `Federal or State COBRA continuation provision' has the meaning given the term `COBRA continuation provision' in section 2791(d)(4) of the Public Health Service Act and includes a comparable State program, as determined by the Secretary. ``(B) Federal health insurance program defined.-- The term `Federal health insurance program' means any of the following: ``(i) Medicare.--Part A or part B of this title (other than by reason of this part). ``(ii) Medicaid.--A State plan under title XIX. ``(iii) FEHBP.--The Federal employees health benefit program under chapter 89 of title 5, United States Code. ``(iv) TRICARE.--The TRICARE program (as defined in section 1072(7) of title 10, United States Code). ``(v) Active duty military.--Health benefits under title 10, United States Code, to an individual as a member of the uniformed services of the United States. ``(C) Group health plan.--The term `group health plan' has the meaning given such term in section 2791(a)(1) of the Public Health Service Act. ``(D) Family member.--The term `family member' includes a domestic partner or other significant relationship recognized under law in the State in which the person being cared for resides. ``(c) Eligibility.--An individual who meets the following requirements with respect to a month is eligible to enroll under this part with respect to such month: ``(1) Age.--As of the last day of the month, the individual has attained 55 years of age, but has not attained 65 years of age. ``(2) Medicare eligibility (but for age).--The individual would be eligible for benefits under part A or part B for the month if the individual were 65 years of age. ``(3) Not eligible for coverage under group health plans or federal health insurance programs.--The individual is not eligible for benefits or coverage under a Federal health insurance program (as defined in subsection (b)(2)(B)) or under a group health plan (other than such eligibility merely through a Federal or State COBRA continuation provision) as of the last day of the month involved. ``(4) Caregiver.--The individual is providing the majority of care to a family member who-- ``(A) is entitled to benefits under part A, or enrolled under part B; and ``(B) requires substantial supervision due to severe cognitive impairment or is unable to perform at least 2 activities of daily living. ``(5) Limitation of 1 caregiver for each disabled eligible beneficiary.--There is no other individual who is enrolled (or enrolling) under this section on the basis of care provided to the family member described in paragraph (4). ``SEC. 1859A. ENROLLMENT PROCESS; COVERAGE. ``(a) In General.--An individual may enroll in the program established under this part only in such manner and form as may be prescribed by regulations, and only during an enrollment period prescribed by the Secretary consistent with the provisions of this section. Such regulations shall provide a process under which individuals eligible to enroll as of a month are permitted to pre- enroll during a prior month within an enrollment period described in subsection (b). ``(b) Enrollment Periods.-- ``(1) In general.--In the case of individuals eligible to enroll under this part under section 1859(c)-- ``(A) Individuals eligible at time program begins.--If the individual is eligible to enroll under such section for January 2003, the enrollment period shall begin on November 1, 2002, and shall end on February 28, 2003. Any such enrollment before January 1, 2003, is conditioned upon compliance with the conditions of eligibility for January 2003. ``(B) Individuals who become eligible later.--If the individual becomes eligible to enroll under such section for a month after January 2003, the enrollment period shall be the 4-month period beginning on the first day of the second month before the month in which the individual first is eligible to so enroll. Any such enrollment before the first day of the third month of such enrollment period is conditioned upon compliance with the conditions of eligibility for such third month. ``(2) Authority to correct for government errors.--The provisions of section 1837(h) apply with respect to enrollment under this part in the same manner as they apply to enrollment under part B. ``(c) Date Coverage Begins.-- ``(1) In general.--The period during which an individual is entitled to benefits under this part shall begin as follows, but in no case earlier than January 1, 2003: ``(A) In the case of an individual who enrolls (including pre-enrolls) before the month in which the individual satisfies eligibility for enrollment under section 1859, the first day of such month of eligibility. ``(B) In the case of an individual who enrolls during or after the month in which the individual first satisfies eligibility for enrollment under such section, the first day of the following month. ``(2) Authority to provide for partial months of coverage.--Under regulations, the Secretary may, in the Secretary's discretion, provide for coverage periods that include portions of a month in order to avoid lapses of coverage. ``(3) Limitation on payments.--No payments may be made under this title with respect to the expenses of an individual enrolled under this part unless such expenses were incurred by such individual during a period which, with respect to the individual, is a coverage period under this section. ``(d) Termination of Coverage.-- ``(1) In general.--An individual's coverage period under this part shall continue until the individual's enrollment has been terminated at the earliest of the following: ``(A) General provisions.-- ``(i) Notice.--The individual files notice (in a form and manner prescribed by the Secretary) that the individual no longer wishes to participate in the insurance program under this part. ``(ii) Nonpayment of premiums.--The individual fails to make payment of premiums required for enrollment under this part. ``(iii) Medicare eligibility.--The individual becomes entitled to benefits under part A or enrolled under part B (other than by reason of this part). ``(B) Termination based on age.--The individual attains 65 years of age. ``(C) Obtaining access to employment-based coverage or federal health insurance program.--The individual is covered (or eligible for coverage) as a participant or beneficiary under a group health plan or under a Federal health insurance program. ``(D) Termination of caregiving.--One year after the date that the individual ceases to be providing the caregiving described in section 1859(c)(4) for a period of 4 consecutive weeks. ``(2) Effective date of termination.-- ``(A) Notice.--The termination of a coverage period under paragraph (1)(A)(i) shall take effect at the close of the month following the month in which the notice is filed. ``(B) Nonpayment of premium.--The termination of a coverage period under paragraph (1)(A)(ii) shall take effect on a date determined under regulations, which may be determined so as to provide a grace period in which overdue premiums may be paid and coverage continued. The grace period determined under the preceding sentence shall not exceed 60 days; except that it may be extended for an additional 30 days in any case where the Secretary determines that there was good cause for failure to pay the overdue premiums within such 60-day period. ``(C) Age or medicare eligibility.--The termination of a coverage period under paragraph (1)(A)(iii) or (1)(B) shall take effect as of the first day of the month in which the individual attains 65 years of age or becomes entitled to benefits under part A or enrolled for benefits under part B (other than by reason of this part). ``(D) Access to coverage.--The termination of a coverage period under paragraph (1)(C) shall take effect on the date on which the individual is eligible to begin a period of creditable coverage (as defined in section 2701(c) of the Public Health Service Act) under a group health plan or under a Federal health insurance program. ``SEC. 1859B. PREMIUMS. ``(a) Amount of Monthly Premiums.--The Secretary shall, during September of each year (beginning with 2002), determine a premium rate which shall apply with respect to coverage provided under this title for any month in the succeeding year. Such rate for individuals residing in a premium area for most of any month in a year shall be equal to \1/12\ of the average, annual per capita amount estimated under subsection (b)(1) for the year, adjusted for such area under subsection (b)(2). ``(b) Annual Premium.-- ``(1) National, per capita average.--The Secretary shall estimate the average, annual per capita amount that would be payable under this title with respect to individuals residing in the United States who meet the requirement of section 1859(c)(1) as if all such individuals were eligible for (and enrolled) under this title during the entire year (and assuming that section 1862(b)(2)(A)(i) did not apply). ``(2) Geographic adjustment.--The Secretary shall adjust the amount determined under paragraph (1) for each premium area (specified under subsection (c)) in order to take into account such factors as the Secretary deems appropriate and shall limit the maximum premium under this paragraph in a premium area to assure participation in all areas throughout the United States. ``(c) Establishment of Premium Areas.--For purposes of this part, the term `premium area' means such an area as the Secretary shall specify to carry out this part. The Secretary from time to time may change the boundaries of such premium areas. The Secretary shall seek to minimize the number of such areas specified under this paragraph. ``SEC. 1859C. PAYMENT OF PREMIUMS. ``(a) Payment of Monthly Premium.-- ``(1) In general.--The Secretary shall provide for payment and collection of the monthly premium, determined under section 1859B(a) for the premium area in which the individual principally resides, in the same manner as for payment of monthly premiums under section 1840, except that, for purposes of applying this section, any reference in such section to the Federal Supplementary Medical Insurance Trust Fund is deemed a reference to the Trust Fund established under section 1859D. ``(2) Period of payment.--In the case of an individual who participates in the program established by this title, the monthly premium shall be payable for the period commencing with the first month of the individual's coverage period and ending with the month in which the individual's coverage under this title terminates. ``(b) Application of Certain Provisions.--The provisions of section 1840 (other than subsection (h)) shall apply to premiums collected under this section in the same manner as they apply to premiums collected under part B, except that any reference in such section to the Federal Supplementary Medical Insurance Trust Fund is deemed a reference to the Trust Fund established under section 1859D. ``SEC. 1859D. MEDICARE CAREGIVER TRUST FUND. ``(a) Establishment of Trust Fund.-- ``(1) In general.--There is hereby created on the books of the Treasury of the United States a trust fund to be known as the `Medicare Caregiver Trust Fund' (in this section referred to as the `Trust Fund'). The Trust Fund shall consist of such gifts and bequests as may be made as provided in section 201(i)(1) and such amounts as may be deposited in, or appropriated to, such fund as provided in this title. ``(2) Premiums.--Premiums collected under section 1859B shall be transferred to the Trust Fund. ``(b) Incorporation of Provisions.-- ``(1) In general.--Subject to paragraph (2), subsections (b) through (i) of section 1841 shall apply with respect to the Trust Fund and this title in the same manner as they apply with respect to the Federal Supplementary Medical Insurance Trust Fund and part B, respectively. ``(2) Miscellaneous references.--In applying provisions of section 1841 under paragraph (1)-- ``(A) any reference in such section to `this part' is construed to refer to this part D; ``(B) any reference in section 1841(h) to section 1840(d) and in section 1841(i) to sections 1840(b)(1) and 1842(g) are deemed references to comparable authority exercised under this part; and ``(C) payments may be made under section 1841(g) to the Trust Funds under sections 1817 and 1841 as reimbursement to such funds for payments they made for benefits provided under this part. ``SEC. 1859E. OVERSIGHT AND ACCOUNTABILITY. ``(a) Through Annual Reports of Trustees.--The Board of Trustees of the Medicare Caregiver Trust Fund under section 1859D(b)(1) shall report on an annual basis to Congress concerning the status of the Trust Fund and the need for adjustments in the program under this part to maintain financial solvency of the program under this part. ``(b) Periodic GAO Reports.--The Comptroller General of the United States shall periodically submit to Congress reports on the adequacy of the financing of coverage provided under this part. The Comptroller General shall include in such report such recommendations for adjustments in such financing and coverage as the Comptroller General deems appropriate in order to maintain financial solvency of the program under this part. ``SEC. 1859F. ADMINISTRATION AND MISCELLANEOUS. ``(a) Treatment for Purposes of Title.--Except as otherwise provided in this part-- ``(1) individuals enrolled under this part shall be treated for purposes of this title as though the individual were entitled to benefits under part A and enrolled under part B; and ``(2) benefits described in section 1859 shall be payable under this title to such individuals in the same manner as if such individuals were so entitled and enrolled. ``(b) Not Treated As Medicare Program for Purposes of Medicaid Program.--For purposes of applying title XIX (including the provision of medicare cost-sharing assistance under such title), an individual who is enrolled under this part shall not be treated as being entitled to benefits under this title. ``(c) Not Treated As Medicare Program for Purposes of COBRA Continuation Provisions.--In applying a COBRA continuation provision (as defined in section 2791(d)(4) of the Public Health Service Act), any reference to an entitlement to benefits under this title shall not be construed to include entitlement to benefits under this title pursuant to the operation of this part.''. (b) Conforming Amendments to Social Security Act Provisions.-- (1) Section 201(i)(1) of the Social Security Act (42 U.S.C. 401(i)(1)) is amended by striking ``or the Federal Supplementary Medical Insurance Trust Fund'' and inserting ``the Federal Supplementary Medical Insurance Trust Fund, and the Medicare Caregiver Trust Fund''. (2) Section 201(g)(1)(A) of such Act (42 U.S.C. 401(g)(1)(A)) is amended by striking ``and the Federal Supplementary Medical Insurance Trust Fund established by title XVIII'' and inserting ``, the Federal Supplementary Medical Insurance Trust Fund, and the Medicare Caregiver Trust Fund established by title XVIII''. (3) Section 1820(i) of such Act (42 U.S.C. 1395i-4(i)) is amended by striking ``part D'' and inserting ``part E''. (4) Part C of title XVIII of such Act is amended-- (A) in section 1851(a)(2)(B) (42 U.S.C. 1395w- 21(a)(2)(B)), by striking ``1859(b)(3)'' and inserting ``1858(b)(3)''; (B) in section 1851(a)(2)(C) (42 U.S.C. 1395w- 21(a)(2)(C)), by striking ``1859(b)(2)'' and inserting ``1858(b)(2)''; (C) in section 1852(a)(1) (42 U.S.C. 1395w- 22(a)(1)), by striking ``1859(b)(3)'' and inserting ``1858(b)(3)''; (D) in section 1852(a)(3)(B)(ii) (42 U.S.C. 1395w- 22(a)(3)(B)(ii)), by striking ``1859(b)(2)(B)'' and inserting ``1858(b)(2)(B)''; (E) in section 1853(a)(1)(A) (42 U.S.C. 1395w- 23(a)(1)(A)), by striking ``1859(e)(4)'' and inserting ``1858(e)(4)''; and (F) in section 1853(a)(3)(D) (42 U.S.C. 1395w- 23(a)(3)(D)), by striking ``1859(e)(4)'' and inserting ``1858(e)(4)''. (5) Section 1853(c) of such Act (42 U.S.C. 1395w-23(c)) is amended-- (A) in paragraph (1), by striking ``or (7)'' and inserting ``, (7), or (8)'', and (B) by adding at the end the following: ``(8) Adjustment for caregiver access.--In applying this subsection with respect to individuals entitled to benefits under part D, the Secretary shall provide for an appropriate adjustment in the Medicare+Choice capitation rate as may be appropriate to reflect differences between the population served under such part and the population under parts A and B.''. (c) Other Conforming Amendments.-- (1) Section 138(b)(4) of the Internal Revenue Code of 1986 is amended by striking ``1859(b)(3)'' and inserting ``1858(b)(3)''. (2)(A) Section 602(2)(D)(ii) of the Employee Retirement Income Security Act of 1974 (29 U.S.C. 1162(2)) is amended by inserting ``(not including an individual who is so entitled pursuant to enrollment under section 1859A)'' after ``Social Security Act''. (B) Section 2202(2)(D)(ii) of the Public Health Service Act (42 U.S.C. 300bb-2(2)(D)(ii)) is amended by inserting ``(not including an individual who is so entitled pursuant to enrollment under section 1859A)'' after ``Social Security Act''. (C) Section 4980B(f)(2)(B)(i)(V) of the Internal Revenue Code of 1986 is amended by inserting ``(not including an individual who is so entitled pursuant to enrollment under section 1859A)'' after ``Social Security Act''. SEC. 3. LONG-TERM CARE TAX CREDIT. (a) In General.--Subpart A of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 (relating to nonrefundable personal credits) is amended by inserting after section 25B the following new section: ``SEC. 25C. LONG-TERM CARE TAX CREDIT. ``(a) Allowance of Credit.--There shall be allowed as a credit against the tax imposed by this chapter for the taxable year an amount equal to $3,000 multiplied by the number of applicable individuals with respect to whom the taxpayer is an eligible caregiver for the taxable year. ``(b) Limitation Based on Adjusted Gross Income.-- ``(1) In general.--The amount of the credit allowable under subsection (a) shall be reduced (but not below zero) by $50 for each $1,000 (or fraction thereof) by which the taxpayer's modified adjusted gross income (as defined in section 24(b)(1)) exceeds the threshold amount (as defined in section 24(b)(2)). ``(2) Limitation based on amount of tax.--The credit allowed under subsection (a) for any taxable year shall not exceed the excess of-- ``(A) the sum of the regular tax liability (as defined in section 26(b)) plus the tax imposed by section 55, over ``(B) the sum of the credits allowable under this subpart (other than this section and sections 23 and 25B) and section 27 for the taxable year. ``(c) Definitions.--For purposes of this section-- ``(1) Applicable individual.-- ``(A) In general.--The term `applicable individual' means, with respect to any taxable year, any individual who has been certified, before the due date for filing the return of tax for the taxable year (without extensions), by a physician (as defined in section 1861(r)(1) of the Social Security Act) as being an individual with long-term care needs described in subparagraph (B) for a period-- ``(i) which is at least 180 consecutive days, and ``(ii) a portion of which occurs within the taxable year. Such term shall not include any individual otherwise meeting the requirements of the preceding sentence unless within the 39\1/2\ month period ending on such due date (or such other period as the Secretary prescribes) a physician (as so defined) has certified that such individual meets such requirements. ``(B) Individuals with long-term care needs.--An individual is described in this subparagraph if the individual meets any of the following requirements: ``(i) The individual is at least 6 years of age and-- ``(I) is unable to perform (without substantial assistance from another individual) at least 3 activities of daily living (as defined in section 7702B(c)(2)(B)) due to a lack of functional capacity, or ``(II) requires substantial supervision to protect such individual from threats to health and safety due to severe cognitive impairment and is unable to perform at least 1 activity of daily living (as so defined) or to the extent provided in regulations prescribed by the Secretary (in consultation with the Secretary of Health and Human Services), is unable to engage in age appropriate activities. ``(ii) The individual is at least 2 but not 6 years of age and is unable due to a loss of functional capacity to perform (without substantial assistance from another individual) at least 2 of the following activities: eating, transferring, or mobility. ``(iii) The individual is under 2 years of age and requires specific durable medical equipment by reason of a severe health condition or requires a skilled practitioner trained to address the individual's condition to be available if the individual's parents or guardians are absent. ``(2) Eligible caregiver.-- ``(A) In general.--A taxpayer shall be treated as an eligible caregiver for any taxable year with respect to the following individuals: ``(i) The taxpayer. ``(ii) The taxpayer's spouse. ``(iii) An individual with respect to whom the taxpayer is allowed a deduction under section 151 for the taxable year. ``(iv) An individual who would be described in clause (iii) for the taxable year if section 151(c)(1)(A) were applied by substituting for the exemption amount an amount equal to 200 percent of the poverty level determined by using criteria of poverty established by the Bureau of the Census. ``(v) An individual who would be described in clause (iii) for the taxable year if-- ``(I) the requirements of clause (iv) are met with respect to the individual, and ``(II) the requirements of subparagraph (B) are met with respect to the individual in lieu of the support test of section 152(a). ``(B) Residency test.--The requirements of this subparagraph are met if an individual has as his principal place of abode the home of the taxpayer and-- ``(i) in the case of an individual who is an ancestor or descendant of the taxpayer or the taxpayer's spouse, is a member of the taxpayer's household for over half the taxable year, or ``(ii) in the case of any other individual, is a member of the taxpayer's household for the entire taxable year. ``(C) Special rules where more than 1 eligible caregiver.-- ``(i) In general.--If more than 1 individual is an eligible caregiver with respect to the same applicable individual for taxable years ending with or within the same calendar year, a taxpayer shall be treated as the eligible caregiver if each such individual (other than the taxpayer) files a written declaration (in such form and manner as the Secretary may prescribe) that such individual will not claim such applicable individual for the credit under this section. ``(ii) No agreement.--If each individual required under clause (i) to file a written declaration under clause (i) does not do so, the individual with the highest modified adjusted gross income (as defined in section 32(c)(5)) shall be treated as the eligible caregiver. ``(iii) Married individuals filing separately.--In the case of married individuals filing separately, the determination under this subparagraph as to whether the husband or wife is the eligible caregiver shall be made under the rules of clause (ii) (whether or not one of them has filed a written declaration under clause (i)). ``(d) Identification Requirement.--No credit shall be allowed under this section to a taxpayer with respect to any applicable individual unless the taxpayer includes the name and taxpayer identification number of such individual, and the identification number of the physician certifying such individual, on the return of tax for the taxable year. ``(e) Taxable Year Must Be Full Taxable Year.--Except in the case of a taxable year closed by reason of the death of the taxpayer, no credit shall be allowable under this section in the case of a taxable year covering a period of less than 12 months.''. (b) Conforming Amendments.-- (1) Paragraph (1) of section 26(a) of such Code is amended by striking ``and 25B'' and inserting ``25B, and 25C''. (2) Paragraph (2) of section 6213(g) of such Code is amended by striking ``and'' at the end of subparagraph (L), by striking the period at the end of subparagraph (M) and inserting ``, and'', and by inserting after subparagraph (M) the following new subparagraph: ``(N) an omission of a correct TIN or physician identification required under section 25C(d) (relating to long-term care tax credit) to be included on a return.'' (3) The table of sections for subpart A of part IV of subchapter A of chapter 1 of such Code is amended by inserting after the item relating to section 25B the following new item: ``Sec. 25C. Long-term care tax credit.''. (c) Effective Date.--The amendments made by this section shall apply to taxable years beginning after December 31, 2002. SEC. 4. DEPARTMENT OF HEALTH AND HUMAN SERVICES PROGRAMS FOR PATIENTS WITH FATAL CHRONIC ILLNESSES. (a) Establishment of Programs.--The Secretary of Health and Human Services shall carry out research, demonstration, and education programs with respect to fatal chronic illness through the Public Health Service. (b) Studies on End-of-Life Care.--The Secretary shall conduct studies on end-of-life care through all relevant agencies and through the Assistant Secretary for Planning and Evaluation. Such studies shall include an examination of the development of practice parameters applicable to such care as well as research regarding such care. Such studies shall also include an annual report from the Secretary to the appropriate committees for oversight in Congress and to the Special Committee on Aging in the Senate on service delivery and quality of life for persons living through fatal chronic illness and their families and professional caregivers. (c) Health Resources and Services Administration.-- (1) In general.--In carrying out subsection (a), the Secretary, acting through the Administrator of the Health Resources and Services Administration, shall carry out research, demonstration, and education programs toward improving the delivery of appropriate health and support services for patients with fatal chronic illnesses. (2) Health centers.--As determined appropriate by the Secretary, paragraph (1) may be carried out through the program under section 330 of the Public Health Service Act (relating to community and migrant health centers and health centers regarding homeless individuals and residents of public housing), including by designating individuals with fatal chronic illnesses as medically underserved populations. (3) Caregivers.--Programs under paragraph (1) shall include activities regarding appropriate support services for caregivers for patients with fatal chronic illness, including respite care. (4) Health professions training.--Programs under paragraph (1) shall include making awards of grants or contracts to public and nonprofit private entities for the purpose of training health professionals, including students attending health professions schools, in the care of patients with fatal chronic illnesses. Such training shall include training in the provision of appropriate palliative care and appropriate referral to hospices, and training provided as continuing education. (5) Initiative.--Programs under paragraph (1) shall include an initiative to coordinate innovation, evaluation, and service delivery relating to fatal chronic illnesses. (d) Agency for Healthcare Research and Quality.-- (1) In general.--In carrying out section 912(c) of the Public Health Service Act, the Secretary, acting through the Director of the Agency for Healthcare Research and Quality, shall, with respect to patients with fatal chronic illnesses-- (A) identify the causes of preventable health care errors and patient injury in health care delivery, including errors of inadequate mobilization of services to the home, inadequate continuity of caregivers, inadequate symptom prevention, management, and relief, or inadequate advance care planning; (B) develop, demonstrate, and evaluate strategies for reliable performance of the care system, including reducing errors and improving patient safety and health outcomes; and (C) disseminate such effective strategies throughout the health care industry. (2) Grants.--In carrying out paragraph (1)(A), the Secretary shall make grants for the purpose of developing reliable and current data and insight as to the merits and efficiencies of various strategies for providing health care, including palliative and hospice care, and social services for patients with fatal chronic illnesses. (e) Centers for Disease Control and Prevention.--The Director of the Centers for Disease Control and Prevention shall expand activities with respect to epidemiology and public health in fatal chronic illness. Such activities may include contracting with the Institute of Medicine or another national interest non-profit organization to provide a review of the status of care for the end of life, which review shall be included by the Secretary in the annual reports to Congress under subsection (h). (f) National Institutes of Health.-- (1) Expansion of activities.--The Director of the National Institutes of Health (in this subsection referred to as the ``Director'') shall expand, intensify, and coordinate the activities of the National Institutes of Health with respect to research on fatal chronic illness. Such activities shall include programs, requests for proposals, study section membership, advisory council membership, and training programs to support rapid and substantial improvements in understanding-- (A) mechanisms of disability and suffering in fatal chronic illness and the relief and management of that disability and suffering through to end of life; and (B) human resources, service delivery arrangements, technology, and financing that would be most useful in ensuring comfort and dignity for individuals with fatal chronic illness, and in relieving the burden for family and professional caregivers. (2) Administration.--The Director shall carry out this subsection acting through the Directors of every Institute within the National Institutes of Health that has at least one fatal chronic illness in its purview. (3) Collaboration.--In carrying out this subsection, the Director of the National Institutes of Health shall collaborate with the Department of Veterans Affairs, the Agency for Healthcare Research and Quality, and any other agency that the Director determines appropriate. The Secretary of Veterans Affairs and the Director of the Agency for Healthcare Research and Quality shall assist in such collaboration. (4) Responsibilities of institutes.--Each Institute within the National Institutes of Health that has fatal chronic illness in its purview shall establish a plan for improving understanding of the mechanisms of disability and suffering in fatal chronic illness and the relief and management of that disability and suffering through to end of life. Since most Americans now die of chronic heart or lung failure, cancer, stroke, dementia, or multifactorial frailty, each such Institute shall develop and implement a strategic plan and a set of projects that aim primarily to ensure that affected patients and their families can live through advanced illness and death comfortably and meaningfully. (5) Centers of excellence.-- (A) In general.--In carrying out paragraph (1), the Director shall make awards of grants and contracts to public or nonprofit private entities for the establishment and operation of centers of excellence to carry out research, demonstration, and education programs regarding fatal chronic illness, including programs regarding palliative care. (B) Designation.--In carrying out this subsection, the Director shall designate at least 2 Claude D. Pepper Older Americans Independence Centers (supported by the National Institute on Aging), 2 program projects of the National, Heart, Lung, and Blood Institute, and 2 comprehensive cancer centers (supported by the National Cancer Institute) to provide education and information support and research data and methods leadership for substantial and rapid improvements in the understanding of the mechanisms of disability and suffering in fatal chronic illness and the relief and management of that disability and suffering through to the end of life. (C) Research.--Each center established or operated under subparagraph (A) or designated under subparagraph (B) shall conduct basic and clinical research into fatal chronic illness. (D) Certain activities.--The Secretary shall ensure that, with respect to the geographic area in which a center of excellence under subparagraph (A) is located, the activities of the center include-- (i) providing information and education regarding fatal chronic illness to health professionals and the public; (ii) serving as a resource through which health professionals, and patients and their caregivers, can plan and coordinate the provision of health and support services regarding fatal chronic illness; and (iii) providing training and support of implementation of quality improvement. (g) Medicare Pilot Programs for Treatment of Fatal Chronic Illnesses.-- (1) Establishment.--The Secretary, in all relevant parts of the Department of Health and Human Services, including the Centers for Medicare & Medicaid Services and the Office of the Assistant Secretary for Planning and Evaluation, shall provide for pilot programs under this subsection. The pilot programs shall be developed under a coordinated national effort in order to demonstrate innovative, effective means of delivering care to Medicare beneficiaries with fatal chronic illnesses under the Medicare program. The pilot programs shall be completed within 5 years after the date that funds are first appropriated under this subsection. (2) Design.--The pilot programs under this subsection shall be designed to learn how-- (A) to effectively and efficiently deliver quality care to the fatally chronically ill; (B) to provide and maintain continuity of care for the fatally chronically ill; (C) to provide advance care planning to the fatally chronically ill; (D) to determine what rate and strategies for payment are most appropriate; (E) to deliver emergency care for the fatally chronically ill; (F) to facilitate access to hospice care when the Medicare beneficiary becomes eligible for such care; (G) to develop and estimate the effect of potential alternative severity criteria for eligibility of specially tailored programs; (H) to test the effectiveness and costs of new strategies for family caregivers support; (I) to implement a clinical services and payment program that uses thresholds of severity to define the onset of the need for comprehensive end-of-life services; (J) to test the merits of using severity criteria (relating to fatal chronic illness) in determining eligibility for the Medicare hospice program, but only when use of such criteria expands access to hospice care to individuals who are not yet terminally ill (as that term is defined at section 1861(dd)(3)(A) of the Social Security Act); and (K) to arrange financial incentives so that substantially diminished payments arise when care providers fail to ensure timely advance care planning, symptom prevention, management, and relief, or continuity of care across time and settings. (3) Conduct of pilot programs.--The Secretary shall conduct pilot programs in at least 6 sites and in at least 3 States. (4) Report to congress.--The Secretary shall submit to Congress a report on the pilot programs under this subsection. Such report shall include recommendations regarding whether the pilot programs should become a permanent part of the Medicare program. (h) Annual Reports.--The Secretary, in consultation with the Secretary of Veterans Affairs and other appropriate Federal agencies, shall submit an annual report to Congress on end-of-life care and on the research, demonstration, and education programs and studies conducted under this section. The Centers for Disease Control and Prevention shall be the lead agency for integrating and preparing the annual reports under this subsection unless the Secretary designates otherwise. (i) Definitions.--For purposes of this section: (1) The term ``fatal chronic illness'' means a disease (or diseases), condition (or conditions), or disorder (or disorders) that ordinarily worsens and causes death and that causes a physical or mental disability or periodic episodes of significant loss of functional capacity. (2) The term ``Secretary'' means the Secretary of Health and Human Services. (j) Authorization of Appropriations.--There are authorized to be appropriated-- (1) such sums as may be necessary to carry out subsections (a), (b), (e), and (f); (2) $50,000,000 for the 5-fiscal-year period (beginning with fiscal year 2004) to carry out subsection (c), excluding paragraph (5) of that subsection; (3) $100,000,000 for the 3-fiscal-year period (beginning with fiscal year 2004) to carry out subsection (c)(5); (4) $20,000,000 for the 5-fiscal-year period (beginning with fiscal year 2004) to carry out subsection (d); (5) to carry out subsection (g) for each of fiscal years 2003 through 2007-- (A) $50,000,000 for the purposes of conducting evaluations of pilot programs; and (B) $50,000,000 for the purpose of providing clinical services under pilot programs; and (6) $500,000 for each fiscal year during the 5-fiscal-year period beginning with fiscal year 2004 to carry out subsection (h). SEC. 5. PROGRAMS THROUGH DEPARTMENT OF VETERANS AFFAIRS REGARDING PATIENTS WITH FATAL CHRONIC ILLNESSES. (a) In General.--(1) Chapter 73 of title 38, United States Code, is amended by adding at the end of subchapter II the following new section: ``Sec. 7324. Programs for patients with fatal chronic illnesses ``(a) Establishment of Programs.--(1) The Secretary shall develop and carry out programs to improve the delivery of appropriate health and support services for patients with fatal chronic illnesses. As part of such programs, the Secretary shall seek to develop services in collaboration with community service providers serving populations of persons other than veterans, especially those populations that use the Medicare program. ``(2) For purposes of this section, community service providers are entities outside the Department that provide health care services to persons in the communities in which they are located. ``(b) Role of GRECCs and Health Services Research.--The Secretary shall take appropriate steps to involve in programs under this section both geriatric research, education, and clinical centers under section 7314 of this title and activities of Health Services research and quality improvement initiatives of the Department. As part of such steps, the Secretary shall seek to target the work of such centers and initiatives to improve care for veterans with fatal chronic illnesses. ``(c) Training.--In conducting programs of professional training and staff development for health-care personnel of the Department and persons being trained through health-care programs conducted by the Secretary, the Secretary shall ensure that such programs include training in pain relief and end-of-life care for persons with fatal chronic illnesses. Such training shall address symptoms, advance care planning, and quality improvement for those with fatal chronic illnesses. ``(d) Annual Report.--The Secretary shall prepare an annual report on care for veterans with fatal chronic illnesses and the activities of the Secretary under this section. The Secretary shall furnish such report to the Secretary of Health and Human Services each year in sufficient time for inclusion in the annual report of that Secretary under section 4(j) of the Living Well with Fatal Chronic Illness Act of 2002. ``(e) Cooperation With Community Service Providers.--(1) In carrying out this section, the Secretary shall, to the extent practicable, take appropriate steps, through collaborative agreements or otherwise, to cooperate with community service providers that provide home and hospice care. ``(2) Such steps shall, to the extent practicable, include-- ``(A) developing documentation of advance care plans for persons with fatal chronic illnesses that are acceptable to all providers of care for those persons; ``(B) developing service programs for persons with fatal chronic illnesses under which Department facilities or personnel may be used for part of the array of services provided to such persons; and ``(C) developing protocols that facilitate the placement with community service providers supported by the medicare or medicaid programs of veterans with fatal chronic illnesses when such a placement would be more efficient or effective for the timely provision of services for the community in which the facilities are located and for such veterans than the provision of those services directly through Department facilities. ``(3) When the Secretary, as part of service programs authorized by this subsection, provides services to a person with a fatal chronic illness who is not a veteran, the Secretary shall, as a condition of providing such services, be reimbursed by appropriate community service providers for the costs of such services. ``(f) Support for Volunteer and Community Support of Veterans Living at Home.--The Secretary shall make grants to support volunteer and community support of veterans living at home who have fatal chronic illnesses. The Secretary may establish the minimum number of volunteers an entity must have in order to be eligible for a grant under this subsection. ``(g) Definition.--For purposes of this section, the term `fatal chronic illness' means a disease (or diseases), condition (or conditions), or disorder (or disorders) that ordinarily worsens and causes death and that causes a physical or mental disability or periodic episodes of significant loss of functional capacity.''. (2) The table of sections at the beginning of such chapter is amended by inserting after the item relating to section 7323 the following new item: ``7324. Programs for patients with fatal chronic illnesses.''. (b) Authorization of Appropriations.--There are authorized to be appropriated to the Secretary of Veterans Affairs to carry out section 7324 of title 38, United States Code, as added by subsection (a), the amount of $5,000,000 for each of fiscal years 2003 through 2007. <all>