CONTRACT PROVISIONS.

SEC. 4091. CONTRACT PROVISIONS. (a) Extensions of Peer Review Contract Period.— (1) One-time extensions to permit staggering of expiration dates.— (A) In general.— In order to permit the Secretary of Health and Human Services an adequate time to complete contract renewal negotiations with utilization and quality control peer review organizations under part B of title XI of the Social Security Act and to provide for a staggered period of contract expiration dates, notwithstanding section 1153(c) of such Act, the Secretary may provide for extensions of existing contracts, but the total of such extensions may not exceed 24 months for any contract. (B) Effective date.— The amendment made by subparagraph (A) shall apply to renewals occurring on or after the date of the enactment of this Act. (2) 3-year contract period.— (A) Section 1153(c)(3) of such Act (42 U.S.C. 1320c–2(c)(3)) is amended by striking “two” and “biennial” and inserting “three” and “triennial”, respectively. (B) The amendment made by subparagraph (A) shall apply with respect to contracts entered into or renewed on or after the date of the enactment of this Act. (b) Contract Requirements.— (1) Section 1153 of the Social Security Act (42 U.S.C. 1320c–2) is amended by adding at the end the following new subsection: “(h) (1) The Secretary shall publish in the Federal Register any new policy or procedure adopted by the Secretary that affects substantially the performance of contract obligations under this section not less than 30 days before the date on which such policy or procedure is to take effect. This paragraph shall not apply to the extent it is inconsistent with a statutory deadline. “(2) The Secretary shall publish in the Federal Register the general criteria and standards used for evaluating the efficient and effective performance of contract obligations under this section and shall provide opportunity for public comment with respect to such criteria and standards. “(3) The Secretary shall regularly furnish each peer review organization with a contract under this section with a report that documents the performance of the organization in relation to the performance of other such organizations.”. 101 STAT. 1330–135 (2) Section 1153(e) of such Act (42 U.S.C. 1320c–2(e)) is amended— (A) by inserting “(1)” after “(e)”; (B) by striking “Contracting” and inserting “Except as provided in paragraph (2), contracting”; and (C) by adding at the end the following new paragraph: “(2) If a peer review organization with a contract under this section is required to carry out a review function in addition to any function required to be carried out at the time the Secretary entered into or renewed the contract with the organization, the Secretary shall, before requiring such organization to carry out such additional function, negotiate the necessary contractual modifications, including modifications that provide for an appropriate adjustment (in light of the cost of such additional function) to the amount of reimbursement made to the organization.”. (3) The amendments made by paragraphs (1) and (2) shall become effective on the date of enactment of this Act.