REGULATION OF INCENTIVE PAYMENTS TO PHYSICIANS.

SEC. 4731. REGULATION OF INCENTIVE PAYMENTS TO PHYSICIANS. (a) Physician Payment Plan.—Section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) as amended by this title is further amended— (1) by striking “, and” at the end of clause (viii) and inserting a semicolon; (2) by striking the period at the end of clause (ix) and inserting and”; and (3) by adding at the end the following new clause: “(x) any physician incentive plan that it operates meets the requirements described in section 1876(i)(8).”. (b) Repeal of Prohibition Against Physician Incentive Payments.— Section 1128A(b)(D (42 U.S.C. 1320a–7a(b)(1)) is— (1) Repeal of prohibition—Section 1128A(b)(D (42 U.S.C. 1320a-7a(b)(D) is amended by striking “or an entity with a contract under section 1903(m)”. (2) Penalties.— Section 1903(m)(5)(A) (42 U.S.C. 1396b(m)(5)(A)) is amended— (A) by striking “or” at the end of clause (iii); (B) by adding “or” at the end of clause (iv); and (C) by adding at the end the following new clause: “(v) fails to comply with the requirements of section 1876(i)(8)”. (c) Effective Date.—The amendments made by subsections (a) and (b)(2) shall apply with respect to contract years beginning on or after January 1, 1992, and the amendments made by subsection (b)(l) shall take effect on the date of the enactment of this Act.