,i  #aad? ,,congress  #a/ ,session  ,h4 
,r4 #ccbj  ,,9 ,,! ,,h\se ,,(           
,,repres5tatives  ,july #bi1 #bjae ,mr4 
,b\/any introduc$ ! foll[+ bill2 :i* 0  
ref]r$ to ! ,committee on ,vet]ans'     
,affairs  ,a ,,bill  ,to am5d title #ch1
 ,unit$ ,/ates ,code1 to au?orize !     
,secret>y ( ,vet]ans ,affairs to ent]   
into contracts ) adm9i/rative           
contractors = ! process+ ( claims =     
hospital c>e & m$ical s]vices furni%$ 9 
non-,dep>tm5t ( ,vet]ans ,affairs       
facilities4  #a4 ,%ort title ,?is ,act  
may be cit$ z ! ,timely ,paym5t =       
,vet]ans' ,m$ical ,c>e ,act4  #b4       
,au?ority ( ,secret>y ( ,vet]ans        
,affairs to ent] into contracts )       
adm9i/rative contractors = ! process+ ( 
claims = hospital c>e & m$ical s]vices  
furni%$ 9 non-,dep>tm5t ( ,vet]ans      
,affairs facilities  7a7 ,9 g5]al ,*apt]
 #ag ( title #ch1 ,unit$ ,/ates ,code1  
is am5d$ by ins]t+ aft] section #agbe ! 
foll[+ new section3  #agbe;,a4 ,au?ority
 to ent] into contracts ) adm9i/rative  

contractors  7a7 ,au?ority  7#a7 ,!     
,secret>y may ent] into contracts ) any 
eligible entity to s]ve z an            
adm9i/rative contractor ) respect to !  
p]=mance ( any or all ( ! functions     
describ$ 9 p>agraph 7#d7 or p>ts ( ^?   
functions 7or1 to ! ext5t provid$ 9 a   
contract1 to secure p]=mance !re( by o!r
 entities74  7#b7 ,an entity is eligible
 to ent] into a contract ) respect to ! 
p]=mance ( a p>ticul> function describ$ 
9 p>agraph 7#d7 only if--  7,a7 ! entity
 has demon/rat$ capability to c>ry out  
su* function2  7,b7 ! entity complies ) 
su* conflict ( int]e/ /&>ds z are       
g5]ally applicable to ,f$]al acquisition
 & procurem5t2  7,c7 ! entity has       
suffici5t assets to f9ancially support !
 p]=mance ( su* function2  7,d7 ! entity
 has ! ability to accept & process      
electronic fil+s ( m$ical records2 &    
7,e7 ! entity meets su* o!r requirem5ts 
z ! ,secret>y may impose4  7#c7 7,a7 ,= 
purposes ( ?is section1 ! t]m           
adm9i/rative contractor means an ag5cy1 

organization1 or o!r p]son ) a contract 
"u ?is section4  7,b7 ,) respect to !   
p]=mance ( a p>ticul> function 9        
relation to an individual enroll$ 9 !   
pati5t enrollm5t sy/em "u section #agje 
( ?is title1 ! appropriate adm9i/rative 
contractor is ! adm9i/rative contractor 
t has a contract "u ?is section )       
respect to ! p]=mance ( t function 9    
relation to t individual1 or            
non-,dep>tm5t facility4  7#d7 ,!        
functions ref]r$ to 9 ?is p>agraph are !
 foll[+ functions relat+ to ! furni%+ ( 
m$ical c>e & hospital s]vices 9         
non-,dep>tm5t facilities "u section     
#agbe or #agbh ( ?is title3  7,a7       
,det]m9+ ! am\nt ( ! paym5ts requir$    
pursuant to ?is title to be made to a   
non-,dep>tm5t facility4  7,b7 ,mak+     
paym5ts describ$ 9 subp>agraph 7,a7     
7includ+ receipt1 disbursem5t1 & acc\nt+
 = funds 9 mak+ su* paym5ts74  7,c7     
,provid+ education & outrea* to         
individuals enroll$ 9 ! pati5t enrollm5t
 sy/em "u section #agje ( ?is title &   

provid+ assi/ance to ^? individuals )   
specific issues1 conc]ns1 or problems4  
7,d7 ,provid+ consultative s]vices to   
in/itutions1 ag5cies1 & o!r p]sons to   
enable !m to e/abli% & ma9ta9 fiscal    
records necess>y = purposes ( ?is title4
  7,e7 ,communicat+ to non-,dep>tm5t    
facilities any in=mation or in/ructions 
furni%$ to ! adm9i/rative contractor by 
! ,secret>y1 & facilitat+ communication 
betwe5 su* facilities & ! ,secret>y4    
7,f7 ,p]=m+ ! functions relat+ to       
non-,dep>tm5t facility education1 tra9+1
 & te*nical assi/ance4  7,g7 ,p]=m+ su* 
o!r functions z are necess>y to c>ry out
 ! purposes ( ?is title4  7#e7 ,except  
to ! ext5t inconsi/5t ) a specific      
requirem5t ( ?is section1 ! ,f$]al      
,acquisition ,regulation applies to     
contracts "u ?is section4  7b7          
,contract+ requirem5ts  7#a7  7,a7      
,except z provid$ 9 laws ) g5]al        
applicability to ,f$]al acquisition &   
procurem5t or 9 subp>agraph 7,b71 !     
,secret>y %all use competitive proc$ures

 :5 ent]+ into contracts ) adm9i/rative 
contractors "u ?is section1 tak+ into   
acc\nt p]=mance quality z well z price &
 o!r factors4  7,b7 ,! ,secret>y may    
r5ew a contract ) an adm9i/rative       
contractor "u ?is section f t]m to t]m  
)\t reg>d to section #e ( title #da1    
,unit$ ,/ates ,code1 or any o!r         
provision ( law requir+ competition1 if 
! adm9i/rative contractor has met or    
exce$$ ! p]=mance requirem5ts applicable
 ) respect to ! contract & contractor1  
except t ! ,secret>y %all provide = !   
application ( competitive proc$ures "u  
su* a contract n less frequ5tly ?an once
 e #e ye>s4  7,c7 ,! ,secret>y may      
transf] functions among adm9i/rative    
contractors consi/5t ) ! provisions (   
?is p>agraph4 ,! ,secret>y %all ensure t
 p]=mance quality is consid]$ 9 su*     
transf]s4 ,! ,secret>y %all provide     
public notice 7:e!r 9 ! ,f$]al ,regi/]  
or o!rwise7 ( any su* transf] 7includ+ a
 description ( ! functions s transf]r$1 
a description ( ! non-,dep>tm5t         

facilities affect$ by su* transf]1 &    
contact in=mation = ! contractors       
involv$74  7,d7 ,! ,secret>y %all       
provide inc5tives = adm9i/rative        
contractors to provide quality s]vice & 
to promote effici5cy4  7#b7 ,no contract
 "u ?is section %all be ent]$ into ) any
 adm9i/rative contractor unless !       
,secret>y f9ds t su* adm9i/rative       
contractor w p]=m its obligations "u !  
contract effici5tly & effectively & w   
meet su* requirem5ts z to f9ancial      
responsibility1 legal au?ority1 quality 
( s]vices provid$1 & o!r matt]s z !     
,secret>y f9ds p]t95t4  7#c7  7,a7  7i7 
,! ,secret>y %all develop contract      
p]=mance requirem5ts to c>ry out !      
specific requirem5ts applicable "u ?is  
title to a function describ$ 9          
subsection 7a77#d7 & %all develop /&>ds 
= measur+ ! ext5t to :i* a contractor   
has met su* requirem5ts4 ,su*           
requirem5ts %all include specific       
p]=mance duties expect$ ( a m$ical      
director ( an adm9i/rative contractor1  

includ+ requirem5ts relat+ to           
pr(essional relations & ! availability (
 su* director to conduct m$ical         
det]m9ation activities )9 ! jurisdiction
 ( su* a contractor4  7ii7 ,9 develop+  
su* p]=mance requirem5ts & /&>ds =      
measurem5t1 ! ,secret>y %all consult )  
non-,dep>tm5t facilities1 vet]ans s]vice
 organizations1 & organizations &       
ag5cies p]=m+ functions necess>y to c>ry
 out ! purposes ( ?is section ) respect 
to su* p]=mance requirem5ts4  7iii7 ,!  
,secret>y %all make su* p]=mance        
requirem5ts & measurem5t /&>ds available
 to ! public4  7,b7 ,! ,secret>y %all   
include1 z "o ( ! /&>ds develop$ "u     
subp>agraph 7,a71 non-,dep>tm5t facility
 & vet]an satisfaction levels4  7,c7    
,all contractor p]=mance requirem5ts    
%all be set =? 9 ! contract betwe5 !    
,secret>y & ! appropriate adm9i/rative  
contractor4 ,su* p]=mance requirem5ts-- 
7i7 %all reflect ! p]=mance requirem5ts 
publi%$ "u subp>agraph 7,a71 b may      
include additional p]=mance requirem5ts2

  7ii7 %all be us$ = evaluat+ contractor
 p]=mance "u ! contract2 &  7iii7 %all  
be consi/5t ) ! writt5 /atem5t ( "w     
provid$ "u ! contract4  7#d7 ,!         
,secret>y %all n ent] into a contract ) 
an adm9i/rative contractor "u ?is       
section unless ! contractor agrees--    
7,a7 to furni% to ! ,secret>y su* timely
 in=mation & reports z ! ,secret>y may  
f9d necess>y 9 p]=m+ ! functions ( !    
,secret>y "u ?is title2 &  7,b7 to      
ma9ta9 su* records & af=d su* access    
!reto z ! ,secret>y f9ds necess>y to    
assure ! correctness & v]ification ( !  
in=mation & reports "u subp>agraph 7,a7 
& o!rwise to c>ry out ! purposes ( ?is  
title4  7#e7 ,a contract ) an           
adm9i/rative contractor "u ?is section  
may require ! adm9i/rative contractor1 &
 any ( its (fic]s or employees c]tify+  
paym5ts or disburs+ funds pursuant to ! 
contract1 or o!rwise p>ticipat+ 9 c>ry+ 
out ! contract1 to give surety bond to !
 ,unit$ ,/ates 9 su* am\nt z ! ,secret>y
 may deem appropriate4  7c7 ,t]ms &     

conditions ,a contract ) any            
adm9i/rative contractor "u ?is section  
may conta9 su* t]ms & conditions z !    
,secret>y f9ds necess>y or appropriate &
 may provide = advances ( funds to !    
adm9i/rative contractor = ! mak+ (      
paym5ts by x "u subsection 7a77#d77;,b74
  7d7 ,limitation on liability (        
adm9i/rative contractors & c]ta9 (fic]s 
7#a7 ,no individual designat$ pursuant  
to a contract "u ?is section z a c]tify+
 (fic] %all1 9 ! abs5ce ( ! reckless    
disreg>d ( ! individual's obligations or
 ! int5t by t individual to defraud !   
,unit$ ,/ates1 be liable ) respect to   
any paym5ts c]tifi$ by ! individual "u  
?is section4  7#b7 ,no disburs+ (fic]   
%all1 9 ! abs5ce ( ! reckless disreg>d (
 ! (fic]'s obligations or ! int5t by t  
(fic] to defraud ! ,unit$ ,/ates1 be    
liable ) respect to any paym5t by su*   
(fic] "u ?is section if x 0 bas$ ^u an  
au?orization 7:i* meets ! applicable    
requirem5ts = su* int]nal controls      
e/abli%$ by ! ,comptroll] ,g5]al ( !    

,unit$ ,/ates7 ( a c]tify+ (fic]        
designat$ z provid$ 9 p>agraph 7#a7 (   
?is subsection4  7#c7  7,a7 ,no         
adm9i/rative contractor %all be liable  
to ! ,unit$ ,/ates = a paym5t by a      
c]tify+ or disburs+ (fic] unless1 9     
connection ) su* paym5t1 ! adm9i/rative 
contractor act$ ) reckless disreg>d (   
its obligations "u its adm9i/rative     
contract or ) int5t to defraud ! ,unit$ 
,/ates4  7,b7 ,no?+ 9 ?is subsection    
%all be con/ru$ to limit liability =    
conduct t w\ld con/itute a violation (  
sections #cgbi ?r\gh #cgca ( title #ca1 
,unit$ ,/ates ,code4  7#d7  7,a7        
,subject to subp>agraphs 7,b7 & 7,d71 9 
! case ( an adm9i/rative contractor 7or 
a p]son :o is a director1 (fic]1 or     
employee ( su* a contractor or :o is    
engag$ by ! contractor to p>ticipate    
directly 9 ! claims adm9i/ration        
process7 :o is made a p>ty to any       
judicial or adm9i/rative proce$+ aris+ f
 or relat+ directly to ! claims         
adm9i/ration process "u ?is title1 !    

,secret>y may1 to ! ext5t ! ,secret>y   
det]m9es to be appropriate & z specifi$ 
9 ! contract ) ! contractor1 indemnify !
 contractor & su* p]sons4  7,b7 ,!      
,secret>y may n provide indemnification 
"u subp>agraph 7,a7 ins(> z ! liability 
= su* co/s arises directly f conduct t  
is det]m9$ by ! judicial proce$+ or by !
 ,secret>y to be crim9al 9 nature1      
fraudul5t1 or grossly neglig5t4 ,if     
indemnification is provid$ by !         
,secret>y ) respect to a contractor be=e
 a det]m9ation t su* co/s arose directly
 f su* conduct1 ! contractor %all       
reimburse ! ,secret>y = co/s (          
indemnification4  7,c7 ,indemnification 
by ! ,secret>y "u subp>agraph 7,a7 may  
include paym5t ( judgm5ts1 settlem5ts   
7subject to subp>agraph 7,d771 aw>ds1 & 
co/s 7includ+ reasonable legal exp5ses74
  7,d7 ,a contractor or o!r p]son       
describ$ 9 subp>agraph 7,a7 may n       
propose to negotiate a settlem5t or     
compromise ( a proce$+ describ$ 9 su*   
subp>agraph )\t ! prior writt5 approval 

( ! ,secret>y to negotiate su* settlem5t
 or compromise4 ,any indemnification "u 
subp>agraph 7,a7 ) respect to am\nts    
paid "u a settlem5t or compromise ( a   
proce$+ describ$ 9 su* subp>agraph are  
condition$ ^u prior writt5 approval by !
 ,secret>y ( ! f9al settlem5t or        
compromise4  7,e7 ,no?+ 9 ?is p>agraph  
%all be con/ru$-- 7i7 to *ange any      
common law immunity t may be available  
to an adm9i/rative contractor or p]son  
describ$ 9 subp>agraph 7,a72 or  7ii7 to
 p]mit ! paym5t ( co/s n o!rwise        
all[able1 reasonable1 or allocable "u ! 
,f$]al ,acquisition ,regulation4  7e7   
,requirem5ts = in=mation security  7#a7 
,an adm9i/rative contractor t p]=ms !   
functions ref]r$ to 9 subp>agraphs 7,a7 
& 7,b7 ( subsection 7a77#d7 7relat+ to  
det]m9+ & mak+ paym5ts7 %all implem5t a 
contractor-wide in=mation security      
program to provide in=mation security = 
! op]ation & assets ( ! contractor )    
respect to su* functions "u ?is title4  
,an in=mation security program "u ?is   

p>agraph %all meet ! requirem5ts =      
in=mation security programs impos$ on   
,f$]al ag5cies "u p>agraphs 7#a7 ?r\gh  
7#h7 ( section #cedd7;b7 ( title #dd1   
,unit$ ,/ates ,code 7o!r ?an !          
requirem5ts "u p>agraphs 7#b77;,d77i71  
7#e77;,a71 & 7#e77;,b7 ( su* section74  
7#b7  7,a7 ,ea* ye> an adm9i/rative     
contractor t p]=ms ! functions ref]r$ to
 9 subp>agraphs 7,a7 & 7,b7 ( subsection
 7a77#d7 7relat+ to det]m9+ & mak+      
paym5ts7 %all und]go an evaluation ( !  
in=mation security ( ! contractor )     
respect to su* functions "u ?is title4  
,! evaluation %all--  7i7 be p]=m$ by an
 entity t meets su* requirem5ts =       
indep5d5ce z ! ,inspector ,g5]al ( !    
,dep>tm5t ( ,heal? & ,human ,s]vices may
 e/abli%2 &  7ii7 te/ ! effectiv5ess (  
in=mation security control te*niques (  
an appropriate subset ( ! contractor's  
in=mation sy/ems 7z def9$ 9 section     
#cejb7h7 ( title #dd1 ,unit$ ,/ates     
,code7 relat+ to su* functions "u ?is   
title & an assessm5t ( compliance ) !   

requirem5ts ( ?is subsection & relat$   
in=mation security policies1 proc$ures1 
/&>ds & guidel9es1 includ+ policies &   
proc$ures z may be prescrib$ by !       
,director ( ! ,(fice ( ,managem5t &     
,budget & applicable in=mation security 
/&>ds promulgat$ "u section #aacca (    
title #dj1 ,unit$ ,/ates ,code4  7,b7   
7i7 ,! results ( indep5d5t evaluations  
"u subp>agraph 7,a7 %all be submitt$    
promptly to ! ,inspector ,g5]al ( !     
,dep>tm5t & to ! ,secret>y4  7ii7 ,!    
,inspector ,g5]al ( ! ,dep>tm5t %all    
submit to ,congress annual reports on ! 
results ( su* evaluations1 includ+      
assessm5ts ( ! scope & suffici5cy ( su* 
evaluations4  7f7 ,inc5tives ,to improve
 contractor p]=mance 9 non-,dep>tm5t    
facility education & outrea* ,!         
,secret>y %all use specific claims      
paym5t error rates or simil> me?odology 
( adm9i/rative contractors 9 ! process+ 
or review+ ( claims 9 ord] to give su*  
contractors an inc5tive to implem5t     
effective education & outrea* programs =

 non-,dep>tm5t facilities4  4  7b7      
,cl]ical am5dm5t ,! table ( sections at 
! beg9n+ ( su* *apt] is am5d$ by ins]t+ 
aft] ! item relat+ to section #agbe !   
foll[+ new item3  #agbe4 ,au?ority to   
ent] into contracts ) adm9i/rative      
contractors4  4