,i  #aacth ,,congress  #b;d ,session    
,h4 ,r4 #dfgf  ,,in ,,the ,,house ,,of  
,,representatives  ,may #ai1 #bjad ,mr4 
,mc,dermott introduced the following    
bill2 which was referred to the         
,committee on ,energy and ,commerce1 and
 in addition to the ,committee on ,ways 
and ,means1 for a period to be          
subsequently determined by the ,speaker1
 in each case for consideration of such 
provisions as fall within the           
jurisdiction of the committee concerned 
,a ,,bill  ,to amend titles ,,xviii and 
,,xix of the ,social ,security ,act to  
apply the ,medicare restriction on      
self-referral to ,state plan            
requirements under ,medicaid1 and for   
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,medicaid      
,physician ,self-,referral ,act of      
#bjad4  #b4 ,adjustments to restriction 
on self-referral under ,medicaid  7a7   
,repeal of restriction on receipt of    
,federal funds in the case of           
self-,referral ,subsection 7s7 of       

section #aijc of the ,social ,security  
,act 7#db ,u4,s4,c4 #acif;b7s77 is      
repealed4  7b7 ,requirement of          
restriction on self-,referral in ,state 
plan requirements ,section #aijb of such
 ,act 7#db ,u4,s4,c4 #acif;a7 is        
amended--  7#a7 in subsection 7a7--     
7,a7 in paragraph 7#hj7 by striking and 
at the end2  7,b7 in paragraph 7#ha7 by 
striking the period at the end and      
inserting 2 and2  7,c7 by inserting     
after paragraph 7#ha7 the following3    
7#hb7 provide that no payment may be    
made under the ,state plan for a        
,medicaid designated health service     
furnished to an individual on the basis 
of a referral by a physician if the     
physician 7or an immediate family member
 of the physician7 has an ownership or  
investment interest or a compensation   
arrangement 7as defined in section      
#ahgg7 with the entity furnishing the   
,medicaid designated health service that
 would not comply with section #ahgg if 
the referral were for an item or service

 otherwise payable under title ,,xviii4 
2 and  7,d7 by inserting after the      
matter immediately following paragraph  
7#hb7 the following3  ,for purposes of  
paragraph 7#hb71 subsections 7f7 and 7g7
 of section #ahgg shall apply to a      
provider of a ,medicaid designated      
health service in a similar manner as   
such subsections apply to a provider of 
an item or service for which payment may
 be made under title ,,xviii4 2 and     
7#b7 by adding at the end the following 
new subsection3  7ll7 ,definition of    
,medicaid designated health service ,for
 purposes of subsection 7a7 the term    
,medicaid designated health service     
means an item or service listed in      
subsection 7h77#f7 of section #ahgg as  
covered by a ,state plan and any other  
service a ,state may choose to add for  
purposes of subsection 7a77#hb74  4  7c7
 ,application of ,false ,claims ,act to 
violations of self-,referral ,section   
#ahgg7;g7 of such ,act 7#db ,u4,s4,c4   
#acienn7g77 is amended by adding at the 

end the following3  7#g7 ,false ,claims 
,act ,a claim that includes an item or  
service resulting from a violation of   
this section constitutes a false or     
fraudulent claim for purposes of        
sections #cgbi-cgcc of title #ca1       
,united ,states ,code4  4  7d7          
,exceptions for violations of           
self-,referral limited to ,medicaid     
,section #ahgg7;h7 of such ,act 7#db    
,u4,s4,c4 #acienn7h77 is amended by     
adding at the end the following3  7#h7  
,medicaid self-,referral limitations    
,any authority of the ,secretary to     
issue regulations under this section    
shall include the authority to issue    
regulations limited to the application  
of self-referral limitations to ,state  
plan requirements1 as described under   
section #aijb7;a77#hb7 of this ,act 7#db
 ,u4,s4,c4 #acif;a7a77#hb774  4  7e7    
,medicaid self-,referral disclosure     
protocol ,the ,secretary of ,health and 
,human ,services shall establish a      
protocol consistent with the            

requirements of the ,medicare           
self-referral disclosure protocol       
required under section #fdji of the     
,patient ,protection and ,affordable    
,care ,act 7#db ,u4,s4,c4 #acienn note7 
that enables health care providers to   
disclose an actual or potential         
violation of section #ahgg of the       
,social ,security ,act 7#db ,u4,s4,c4   
#acienn7 as applied to title ,,xix of   
such ,act1 pursuant to section          
#aijb7;a77#hb7 of such ,act 7#db        
,u4,s4,c4 #acif;a7a77#hb774  #c4        
,effective date  7#a7 ,in general       
,subject to paragraph 7#b71 the         
amendments made by this ,act shall apply
 to items and services furnished after  
the first day of the first calendar year
 that begins after date of enactment of 
this ,act4  7#b7 ,exception for ,state  
legislation ,in the case of a ,state    
plan under title ,,xix of the ,social   
,security ,act that the ,secretary of   
,health and ,human ,services determines 
requires ,state legislation in order for

 the respective plan to meet any        
requirement imposed by amendments made  
by this ,act1 the respective plan shall 
not be regarded as failing to comply    
with the requirements of such title     
solely on the basis of its failure to   
meet such an additional requirement     
before the first day of the first       
calendar quarter beginning after the    
close of the first regular session of   
the ,state legislature that begins after
 the date of enactment of this ,act4    
,for purposes of the previous sentence1 
in the case of a ,state that has a      
#b-year legislative session1 each year  
of the session shall be considered to be
 a separate regular session of the      
,state legislature4