ADMINISTRATIVE IMPROVEMENTS WITHIN THE CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS).

SEC. 900. ADMINISTRATIVE IMPROVEMENTS WITHIN THE CENTERS FOR MEDICARE & MEDICAID SERVICES (CMS).(a) Coordinated Administration of Medicare Prescription Drug and Medicare Advantage Programs.—Title XVIII (42 U.S.C. 1395 et seq.), as amended by section 721, is amended by inserting after 1807 the following new section:“provisions relating to administration“Sec. 1808. (a) Coordinated Administration of Medicare Prescription Drug and Medicare Advantage Programs.—“(1) In general.—There is within the Centers for Medicare & Medicaid Services a center to carry out the duties described in paragraph (3).“(2) Director.—Such center shall be headed by a director who shall report directly to the Administrator of the Centers for Medicare & Medicaid Services.“(3) Duties.—The duties described in this paragraph are the following:“(A) The administration of parts C and D.“(B) The provision of notice and information under section 1804.“(C) Such other duties as the Secretary may specify.“(4) Deadline.—The Secretary shall ensure that the center is carrying out the duties described in paragraph (3) by not later than January 1, 2008.” .(b) Management Staff for the Centers for Medicare & Medicaid Services.—Such section is further amended by adding at the end the following new subsection:“(b) Employment of Management Staff.—“(1) In general.—The Secretary may employ, within the Centers for Medicare & Medicaid Services, such individuals as management staff as the Secretary determines to be appropriate. With respect to the administration of parts C and D, 117 STAT. 2370 such individuals shall include individuals with private sector expertise in negotiations with health benefits plans.“(2) Eligibility.—To be eligible for employment under paragraph (1) an individual shall be required to have demonstrated, by their education and experience (either in the public or private sector), superior expertise in at least one of the following areas:“(A) The review, negotiation, and administration of health care contracts.“(B) The design of health care benefit plans.“(C) Actuarial sciences.“(D) Compliance with health plan contracts.“(E) Consumer education and decision making.“(F) Any other area specified by the Secretary that requires specialized management or other expertise.“(3) Rates of payment.—“(A) Performance-related pay.—Subject to subparagraph (B), the Secretary shall establish the rate of pay for an individual employed under paragraph (1). Such rate shall take into account expertise, experience, and performance.“(B) Limitation.—In no case may the rate of compensation determined under subparagraph (A) exceed the highest rate of basic pay for the Senior Executive Service under section 5382(b) of title 5, United States Code.”.(c) Requirement for Dedicated Actuary for Private Health Plans.—Section 1117(b) (42 U.S.C. 1317(b)) is amended by adding at the end the following new paragraph:“(3) In the office of the Chief Actuary there shall be an actuary whose duties relate exclusively to the programs under parts C and D of title XVIII and related provisions of such title.”.(d) Increase in Grade to Executive Level III for the Administrator of the Centers for Medicare & Medicaid Services.—(1) In general.—Section 5314 of title 5, United States Code, is amended by adding at the end the following: “Administrator of the Centers for Medicare & Medicaid Services.”.(2) Conforming amendment.—Section 5315 of such title is amended by striking “Administrator of the Health Care Financing Administration.”.(3) Effective date.—The amendments made by this subsection take effect on January 1, 2004.(e) Conforming Amendments Relating to Health Care Financing Administration.—(1) Amendments to the social security act.—The Social Security Act is amended—(A) in section 1117 (42 U.S.C. 1317)—(i) in the heading to read as follows: “appointment of the administrator and chief actuary of the centers for medicare & medicaid services”;(ii) in subsection (a), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; and(iii) in subsection (b)(1)—117 STAT. 2371(I) by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; and(II) by striking “Administration” and inserting “Centers”; (B) in section 1140(a) (42 U.S.C. 1320b–10(a))—(i) in paragraph (1), by striking “Health Care Financing Administration” both places it appears in the matter following subparagraph (B) and inserting “Centers for Medicare & Medicaid Services”;(ii) in paragraph (1)(A)—(I) by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; and(II) by striking “HCFA” and inserting “CMS”; and(iii) in paragraph (1)(B), by striking “Health Care Financing Administration” both places it appears and inserting “Centers for Medicare & Medicaid Services”;(C) in section 1142(b)(3) (42 U.S.C. 1320b–12(b)(3)), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”;(D) in section 1817(b) (42 U.S.C. 1395i(b))—(i) by striking “Health Care Financing Administration”, both in the fifth sentence of the matter preceding paragraph (1) and in the second sentence of the matter following paragraph (4), and inserting “Centers for Medicare & Medicaid Services”; and(ii) by striking “Chief Actuarial Officer” in the second sentence of the matter following paragraph (4) and inserting “Chief Actuary”; (E) in section 1841(b) (42 U.S.C. 1395t(b))—(i) by striking “Health Care Financing Administration”, both in the fifth sentence of the matter preceding paragraph (1) and in the second sentence of the matter following paragraph (4), and inserting “Centers for Medicare & Medicaid Services”; and(ii) by striking “Chief Actuarial Officer” in the second sentence of the matter following paragraph (4) and inserting “Chief Actuary”;(F) in section 1852(a)(5) (42 U.S.C. 1395w–22(a)(5)), by striking “Health Care Financing Administration” in the matter following subparagraph (B) and inserting “Centers for Medicare & Medicaid Services”;(G) in section 1853 (42 U.S.C. 1395w–23)—(i) in subsection (b)(4), by striking “Health Care Financing Administration” in the first sentence and inserting “Centers for Medicare & Medicaid Services”; and(ii) in subsection (c)(7), by striking “Health Care Financing Administration” in the last sentence and inserting “Centers for Medicare & Medicaid Services”;(H) in section 1854(a)(5)(A) (42 U.S.C. 1395w–24(a)(5)(A)), by striking “Health Care Financing Administration”and inserting “Centers for Medicare & Medicaid Services”; 117 STAT. 2372(I) in section 1857(d)(4)(A)(ii) (42 U.S.C. 1395w–27(d)(4)(A)(ii)), by striking “Health Care Financing Administration” and inserting “Secretary”; (J) in section 1862(b)(5)(A)(ii) (42 U.S.C. 1395y(b)(5)(A)(ii)), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; (K) in section 1927(e)(4) (42 U.S.C. 1396r–8(e)(4)), by striking “HCFA” and inserting “The Secretary”; (L) in section 1927(f)(2) (42 U.S.C. 1396r–8(f)(2)), by striking “HCFA” and inserting “The Secretary”; and(M) in section 2104(g)(3) (42 U.S.C. 1397dd(g)(3)) by inserting “or CMS Form 64 or CMS Form 21, as the case may be,” after “HCFA Form 64 or HCFA Form 21”. (2) Amendments to the public health service act.—The Public Health Service Act is amended—(A) in section 501(d)(18) (42 U.S.C. 290aa(d)(18)), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; (B) in section 507(b)(6) (42 U.S.C. 290bb(b)(6)), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; (C) in section 916 (42 U.S.C. 299b–5)—(i) in subsection (b)(2), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; and(ii) in subsection (c)(2), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”;(D) in section 921(c)(3)(A) (42 U.S.C. 299c(c)(3)(A)), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; (E) in section 1318(a)(2) (42 U.S.C. 300e–17(a)(2)), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; (F) in section 2102(a)(7) (42 U.S.C. 300aa–2(a)(7)), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; and (G) in section 2675(a) (42 U.S.C. 300ff–75(a)), by striking “Health Care Financing Administration” in the first sentence and inserting “Centers for Medicare & Medicaid Services”. (3) Amendments to the internal revenue code of 1986.—Section 6103(l)(12) of the Internal Revenue Code of 1986 is amended—(A) in subparagraph (B), by striking “Health Care Financing Administration” in the matter preceding clause (i) and inserting “Centers for Medicare & Medicaid Services”; and (B) in subparagraph (C)—(i) by striking “health care financing administration” in the heading and inserting “centers for medicare & medicaid services”; and (ii) by striking “Health Care Financing Administration” in the matter preceding clause (i) and inserting “Centers for Medicare & Medicaid Services”. 117 STAT. 2373(4) Amendments to title 10, united states code.—Title 10, United States Code, is amended—(A) in section 1086(d)(4), by striking “administrator of the Health Care Financing Administration” in the last sentence and inserting “Administrator of the Centers for Medicare & Medicaid Services”; and(B) in section 1095(k)(2), by striking “Health Care Financing Administration” in the second sentence and inserting “Centers for Medicare & Medicaid Services”. (5) Amendments to the alzheimer’s disease and related dementias services research act of 1992.—The Alzheimer’s Disease and Related Dementias Research Act of 1992 (42 U.S.C. 11271 et seq.) is amended—(A) in the heading of subpart 3 of part D to read as follows: “Subpart 3—Responsibilities of the Centers for Medicare & Medicaid Services”;(B) in section 937 (42 U.S.C. 11271)—(i) in subsection (a), by striking “National Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”;(ii) in subsection (b)(1), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”;(iii) in subsection (b)(2), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; and(iv) in subsection (c), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”; and(C) in section 938 (42 U.S.C. 11272), by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”. (6) Miscellaneous amendments.—(A) Rehabilitation act of 1973.—Section 202(b)(8) of the Rehabilitation Act of 1973 (29 U.S.C. 762(b)(8)) is amended by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”. (B) Indian health care improvement act.—Section 405(d)(1) of the Indian Health Care Improvement Act (25 U.S.C. 1645(d)(1)) is amended by striking “Health Care Financing Administration” in the matter preceding subparagraph (A) and inserting “Centers for Medicare & Medicaid Services”. (C) Individuals with disabilities education act.—Section 644(b)(5) of the Individuals with Disabilities Education Act (20 U.S.C. 1444(b)(5)) is amended by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”. (D) The home health care and alzheimer’s disease amendments of 1990.—Section 302(a)(9) of the Home Health Care and Alzheimer’s Disease Amendments of 1990 (42 U.S.C. 242q–1(a)(9)) is amended by striking “Health 117 STAT. 2374 Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”. (E) The children’s health act of 2000.—Section 2503(a) of the Children’s Health Act of 2000 (42 U.S.C. 247b–3a(a)) is amended by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”. (F) The national institutes of health revitalization act of 1993.—Section 1909 of the National Institutes of Health Revitalization Act of 1993 (42 U.S.C. 299a note) is amended by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”. (G) The omnibus budget reconciliation act of 1990.—Section 4359(d) of the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C. 1395b–3(d)) is amended by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”. (H) The medicare, medicaid, and schip benefits improvement and protection act of 2000.—Section 104(d)(4) of the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (42 U.S.C. 1395m note) is amended by striking “Health Care Financing Administration” and inserting “Health Care”. (7) Additional amendment.—Section 403 of the Act entitled, “An Act to authorize certain appropriations for the territories of the United States, to amend certain Acts relating thereto, and for other purposes”, enacted October 15, 1977 (48 U.S.C. 1574–1; 48 U.S.C. 1421q–1), is amended by striking “Health Care Financing Administration” and inserting “Centers for Medicare & Medicaid Services”.