,i #aad? ,,congress #a/ ,session ,h4 ,r4 #dahe ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,decemb] #h1 #bjae ,mr4 ,tom ,price ( ,georgia 7= himself1 ,mrs4 ,mc,morris ,rodg]s1 ,mrs4 ,blackburn1 ,ms4 ,duckwor?1 ,mr4 ,loebsack1 ,mr4 ,ryan ( ,ohio1 ,mr4 ,roe ( ,t5nessee1 ,mrs4 ,noem1 ,mr4 ,k+ ( ,new ,york1 ,mr4 ,z9ke1 ,mr4 ,tipton1 ,mr4 ,blum1 ,mr4 ,cram]1 ,mr4 ,mc,clintock1 ,mr4 ,keat+1 ,mr4 ,duncan ( ,t5nessee1 ,mrs4 ,ellm]s ( ,nor? ,c>ol9a1 ,mr4 ,h>p]1 & ,mr4 ,au/9 ,scott ( ,georgia7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce1 & 9 addition to ! ,committee on ,ways & ,means1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to make adju/m5ts1 includ+ by am5d+ title ,,xviii ( ! ,social ,security ,act1 relat+ to competitive bidd+ program & durable m$ical equipm5t "u ! ,m$ic>e program1 to am5d su* title to e/abli% a ,,dmepos m>ket pric+ program demon/ration project1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,protect+ ,access ?r\gh ,competitive-pric+ ,transition ,act ( #bjae or z ! ,,pact ,act ( #bjae4 #b4 ,revision ( paym5ts = durable m$ical equipm5t "u ! ,m$ic>e program 7a7 ,transition to implem5tation ( fee s*$ule paym5t adju/m5ts us+ in=mation f competitive bidd+ programs ,section #ahcd7;a77#a7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aciem7a77#a77 is am5d$ by add+ at ! end ! foll[+ new subp>agraph3 7,j7 ,transition to implem5tation ( paym5t adju/m5ts us+ in=mation f competitive bidd+ programs 7i7 ,9 g5]al ,9 implem5t+ subp>agraph 7,f7 & p>agraphs 7#a7 & 7#b7 ( section #dad4baj7;g7 ( title #db1 ,code ( ,f$]al ,regulations1 ) respect to items & s]vices furni%$ on or aft] ,janu>y #a1 #bjaf1 & be=e ,janu>y #a1 #bjai1 ! fee s*$ule am\nt t w\ld o!rwise be det]m9$ = ea* area "u ?is section %all be adju/$ to ! less] (-- 7,i7 #acj p]c5t ( ! regional price det]m9$ "u clause 7i7 ( su* p>agraph 7#a7 = ! ,/ate 9 :i* su* area is locat$ 7or1 9 ! case ( an area locat$ )9 ! ,di/rict ( ,columbia1 = su* ,di/rict72 or 7,,ii7 ! fee s*$ule am\nt t w\ld o!rwise be det]m9$ = su* area "u ?is section 7)\t ! application ( subsection 7a77#a77;,f7 ( su* section7 on ,janu>y #a1 #bjae1 updat$ by ! cov]$ item update describ$ 9 p>agraph 7#ad77,l7 = ! ye> 9 :i* ! items & s]vices to :i* su* fee s*$ule applies are furni%$4 7ii7 ,phase-9 ,! adju/m5t describ$ 9 clause 7i7 %all be implem5t$ ov] a two-ye> p]iod & 9 a mann] t phases 9 su* adju/m5t 9 equal increm5ts 9 ea* ye> ( su* two-ye> p]iod1 ) su* adju/m5t be+ fully implem5t$ ) respect to items & s]vices furni%$ 9 #bjag4 4 7b7 ,bid ceil+ = competitive acquisition = durable m$ical equipm5t "u ! ,m$ic>e program ,section #ahdg7;b77#e7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aciew-#c7;b77#e77 is am5d$-- 7#a7 9 subp>agraph 7,a7-- 7,a7 by ins]t+ 1 subject to subp>agraph 7,e71 aft] subsection 7a77#b72 & 7,b7 by ins]t+ 1 subject to subp>agraph 7,e71 aft] ,bas$ on su* bids2 & 7#b7 by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,bid ceil+ = durable m$ical equipm5t 7i7 ,9 g5]al ,paym5t "u ?is section = applicable cov]$ items may n exce$ ! am\nt t w\ld o!rwise be paid = su* items "u section #ahcd 7)\t ! application ( subsection 7a77#a77;,f7 ( su* section7 on ,janu>y #a1 #bjae1 updat$ by ! cov]$ item update describ$ 9 section #ahcd7;a77#ad77,l7 = ! ye> 9 :i* su* cov]$ item is furni%$4 7ii7 ,application to new cov]$ items ,! ,secret>y %all e/abli% a process = purposes ( apply+ clause 7i7 ) respect to applicable cov]$ items = :i* no am\nt w\ld o!rwise be paid "u section #ahcd 7)\t ! application ( subsection 7a77#a77;,f7 ( su* section7 on ,janu>y #a1 #bjae4 7iii7 ,applicable cov]$ items def9$ ,= purposes ( ?is subp>agraph1 ! t]m applicable cov]$ items means cov]$ items 7z def9$ 9 section #ahcd7;a77#ac77 = :i* paym5t w\ld o!rwise be made "u section #ahcd7;a7 t are furni%$ ) respect to competitive bid contracts t beg9 on or aft] ,janu>y #a1 #bjag4 4 7c7 ,requirem5t 9 det]m9+ adju/m5ts us+ in=mation f competitive bidd+ programs ,section #ahcd7;a77#a77;,g7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aciem7a77#a77;,g77 is am5d$ by add+ at ! end ! foll[+ new s5t5ce3 ,9 ! case ( items & s]vices furni%$ on or aft] ,janu>y #a1 #bjai1 9 mak+ any adju/m5ts "u clause 7ii7 or 7iii7 ( subp>agraph 7,f71 ! ,secret>y %all take into acc\nt ! av]age travel di/ance & co/ associat$ ) furni%+ items & s]vices 9 a competitive acquisition area1 ! av]age volume ( items & s]vices furni%$ by provid]s 9 su* an area1 ! cle>+ price ( items & s]vices1 & ! numb] ( provid]s 9 competitive acquisition areas comp>$ to ! numb] ( provid]s 9 noncompetitive acquisition areas4 ,9 implem5t+ ! prec$+ s5t5ce1 ! ,secret>y %all solicit & take into acc\nt /akehold] input44 #c4 ,e/abli%m5t ( ,,dmepos m>ket pric+ program demon/ration project 7a7 ,9 g5]al ,"p ,b ( title ,,xviii ( ! ,social ,security ,act is am5d$ by ins]t+ aft] section #ahdg;,b 7#db ,u4,s4,c4 #aciew-#c;b7 ! foll[+ new section3 #ahdg;,c4 ,,dmepos m>ket pric+ program demon/ration project 7a7 ,e/abli%m5t 7#a7 ,9 g5]al ,! ,secret>y %all e/abli% & implem5t a six-ye> m>ket pric+ program demon/ration project 79 ?is section ref]r$ to z ! demon/ration project7 "u :i* ?ree auctions are conduct$ 9 eligible auction areas 7z def9$ 9 p>agraph 7#c77 ?r\gh\t ! ,unit$ ,/ates = ! furni%+ ( m>ket-pric$ items & s]vices 7z def9$ 9 subsection 7b77 = :i* paym5t is made "u ?is "p4 ,ea* su* auction %all1 9 accordance ) subsection 7c77#c77;,d77ii77,,iv71 be ) respect to a contract p]iod ( two ye>s = ea* lead product4 7#b7 ,implem5tation timel9e ,! demon/ration project %all be c>ri$ out 9 accordance ) ! foll[+ timel9e3 7,a7 ,contract+ ) auction exp]t & m>ket monitor ,n lat] ?an #c mon?s aft] ! date ( ! enactm5t ( ?is section1 ! ,secret>y %all contract ) ! auction exp]t contract$ ) "u subsection 7f77#a7 7h]e9aft] ref]r$ to z ! auction exp]t7 & m>ket monitor contract$ ) "u su* subsection 7h]e9aft] ref]r$ to z ! m>ket monitor74 7,b7 ,initial design ( auction ,n lat] ?an #e mon?s aft] su* date ( enactm5t1 ! developm5t ( ! initial auction design "u subsection 7c77#b77;,b77i7 %all be complet$4 7,c7 ,auction design conf]5ce ,n lat] ?an #f mon?s aft] su* date ( enactm5t1 ! ,secret>y %all hold ! auction design conf]5ce "u subsection 7c77#b77;,c74 7,d7 ,f9aliz+ auction details ,n lat] ?an #g mon?s aft] su* date ( enactm5t1 ! ,secret>y %all promulgate1 ?r\gh ! exp$it$ rulemak+ process "u subsection 7c77#b77;,d71 ! proc$ures to be us$ = auctions "u ! demon/ration project4 7,e7 ,conduct ( fir/ auction ,n lat] ?an #aa mon?s aft] su* date ( enactm5t1 ! fir/ auction "u ! demon/ration project %all occur "u subsection 7c77#c74 7,f7 ,aw>d+ contracts "u fir/ auction ,n lat] ?an #a ye> aft] su* date ( enactm5t1 contracts "u su* fir/ auction %all be aw>d$4 7#c7 ,eligible auction areas 7,a7 ,def9ition 7i7 ,9 g5]al ,9 ?is section1 subject to clause 7ii71 ! t]m eligible auction area means1 ) respect to an auction "u ?is section1 a c\nty1 aggregation ( c\nties1 or "p ( "o or m c\nties specifi$ by ! ,secret>y = purposes ( su* auction1 9 accordance ) ?is p>agraph4 7ii7 ,special rule = diabetic supplies ,9 apply+ ?is section ) respect to ! product category describ$ 9 subsection 7b77#aa71 ! t]m eligible auction area means1 ) respect to an auction "u ?is section1 a ,/ate specifi$ by ! ,secret>y = purposes ( su* auction1 9 accordance ) subp>agraph 7,b77iii74 7,b7 ,specification ( eligible auction areas ,= purposes ( ?is section1 ! ,secret>y %all specify eligible auction areas 9 accordance ) ! foll[+3 7i7 ,m>ket areas mu/ reflect economic int]dep5d5cy ,! ,secret>y %all *oose c\nties1 aggregations ( c\nties1 or p>ts ( c\nties 9 su* a mann] z to provide = auction areas t =m economically int]dep5d5t areas 7z reflect$ 9 /&>d econometric m>ket models74 ,= purposes ( specify+ eligible auction areas 9 accordance ) ! prec$+ s5t5ce1 ! ,secret>y may subdivide a l>ge c\nty to take into acc\nt population & geographic size4 7ii7 ,r\nd #b recompete competitive bidd+ areas ,! ,secret>y %all specify at lea/ #aj eligible auction areas t con/itut$ ,r\nd #b ,recompete competitive bidd+ areas "u section #ahdg4 ,to ! ext5t possible1 areas select$ = ! demon/ration project %\ld repres5t a v>iety ( economic m>kets 7z reflect$ 9 /&>d econometric m>ket models74 7iii7 ,mail ord] diabetic supplies ,= purposes ( subp>agraph 7,a77ii71 ) respect to ! product category describ$ 9 subsection 7b77#aa71 ! ,secret>y %all specify two ,/ates z eligible auction areas = mail ord] diabetic supplies4 ,su* two ,/ates1 comb9$1 %all repres5t at lea/ #g p]c5t ( ! total population ( individuals :o are ei!r entitl$ to b5efits "u "p ,a or enroll$ "u "p ,b 7z det]m9$ bas$ ^u ! mo/ rec5t available data74 7#d7 ,application ( c]ta9 policies applicable to competitive acquisition programs ,! foll[+ provisions ( subsection 7a77#a7 ( section #ahdg %all apply to ! demon/ration project 9 ! same mann] z su* provisions apply to competitive acquisition programs "u su* section except z o!rwise provid$3 7,a7 ,subp>agraph 7,c7 7relat+ to waiv] ( c]ta9 provisions74 7,b7 ,subp>agraph 7,e7 7relat+ to v]ification by ,,oig71 except t ! assessm5t %all be ( m>ket pric+ & subsequ5t pric+ det]m9ations t are ! basis = auction prices & s+le paym5t am\nts = items & s]vices 9 eligible auction areas & %all be conduct$ 9 ! fir/ two ye>s ( ! demon/ration project & may cont9ue 9 subsequ5t ye>s ( ! project4 7,c7 ,subp>agraph 7,f7 7relat+ to fe$back on miss+ f9ancial docum5tation71 except t any ref]5ce to a r\nd ( a program is deem$ a ref]5ce to a ye> ( ! demon/ration project4 7b7 ,m>ket-,pric$ items & s]vices def9$ ,9 ?is section1 ! t]m m>ket-pric$ items & s]vices means items & s]vices 9 ea* ( ! foll[+ categories 7ea* ( :i* 9 ?is section ref]r$ to z a product category73 7#a7 ,oxyg5 supplies & equipm5t4 7#b7 ,/&>d p[] :eel*airs1 p[] scoot]s1 & relat$ accessories4 7#c7 ,manual :eel*airs4 7#d7 ,ent]al nutri5ts1 equipm5t1 & supplies4 7#e7 ,cont9u\s positive airway pressure devices1 respiratory assi/ive devices1 & relat$ supplies4 7#f7 ,hospital b$s & relat$ accessories4 7#g7 ,walk]s & relat$ accessories4 7#h7 ,support s]vices 7,gr\p #b mattresses & ov]lays74 7#i7 ,negative pressure w\nd !rapy pumps & relat$ supplies & accessories4 7#aj7 ,(f-!-%elf or?otics describ$ 9 subp>agraph 7,c7 ( section #ahdg7;a77#b7 to ! ext5t !y are includ$ pursuant to su* subp>agraph 9 items & s]vices describ$ "u su* section & includ$ 9 a competitive bidd+ program 9 a competitive acquisition area "u section #ahdg7;a74 7#aa7 ,mail ord] diabetic supplies4 7#ab7 ,o!r items & s]vices 7o!r ?an ^? items & s]vices specifi$ 9 p>agraph 7#b77 t c\ld h be5 subject to p>ticipation 9 competitive acquisition programs "u section #ahdg7;a77#a74 7c7 ,demon/ration pric+ project requirem5ts 7#a7 ,9 g5]al ,! ,secret>y %all e/abli%1 ?r\gh ! process describ$ 9 p>agraph 7#b71 an auction design = ea* auction t meets ! requirem5ts ( p>agraph 7#c71 & %all ensure t ! fir/ auction "u ! demon/ration project w be conduct$ = all eligible auction areas specifi$ "u subsection 7a77#c7 n lat] ?an ! date specifi$ 9 subsection 7a77#b77;,e74 7#b7 ,auction design process2 /akehold] input 7,a7 ,transp>5t process requir$ ,9 e/abli%+ ! auction design describ$ 9 p>agraph 7#a71 ! ,secret>y %all utilize an op5 & transp>5t process t involves all eligible p>ticipants describ$ 9 subp>agraph 7,c77ii71 includ+ ?r\gh ! auction design conf]5ce & o!r outrea* ef=ts4 7,b7 ,initial auction design ,! auction exp]t %all1 ) respect to an auction & consi/5t ) subsection 7a77#b77;,b71 develop an auction design 7ref]r$ to 9 ?is section z ! initial auction design7 t %all propose = su* auction eligible auction areas1 lead products = ea* product category1 weights to be assign$ to products "u p>agraph 7#c77;,b77iv71 & propos$ rules = ! conduct ( ! auction4 7,c7 ,auction design conf]5ce 7i7 ,9 g5]al ,! ,secret>y %all1 consi/5t ) subsection 7a77#b77;,c71 conv5e a design conf]5ce 79 ?is p>agraph ref]r$ to z ! design conf]5ce7 = ! auction process = ea* auction "u ?is section4 ,! auction exp]t %all *air ! conf]5ce & ! m>ket monitor %all p>ticipate 9 ! conf]5ce 7includ+ z describ$ 9 clause 7v774 7ii7 ,p>ticipants ,! p>ticipants at ! design conf]5ce %all include at lea/ ! foll[+3 7,i7 ,manufactur]s1 suppli]s & trade associations ( ,,dmepos ,repres5tatives ( manufactur]s1 suppli]s1 & trade associations ( m>ket-pric$ items & s]vices4 7,,ii7 ,b5efici>ies ,repres5tatives ( individuals enroll$ "u ?is "p4 7,,iii7 ,,cms ,! ,adm9i/rator ( ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices & o!r appropriate ,f$]al p]sonnel4 7iii7 ,purpose ( conf]5ce ,! purpose ( ! design conf]5ce %all be to review ! initial auction design = ! e/abli%m5t ( an effici5t auction consi/5t ) be/ practices & actu>ial sci5ce & to provide /akehold]s ! opportunity to provide fe$back on ! initial auction design4 7iv7 ,auction exp]t responsibilities at conf]5ce ,) respect to ! design conf]5ce1 ! auction exp]t %all-- 7,i7 provide a demon/ration ( ! initial auction design2 7,,ii7 lead a mock auction bas$ ^u su* initial auction design 9 :i* ! att5dees w p>ticipate & (f] comm5ts & sugge/ions = improvem5t2 7,,iii7 invite input f suppli]s z to ! relation%ip betwe51 ) respect to a product category1 ! lead product 9 su* product category & ! value ( o!r products 9 ! same product category z su* lead product 7& may e/abli% work+ committees on major issues relat$ to su* relation%ip72 & 7,,iv7 invite input f small suppli]s z to ! ways 9 :i* su* initial auction design c be improv$ to ensure t small suppli]s h ! opportunity to p>ticipate 9 ! auction4 7v7 ,m>ket monitor responsibilities at conf]5ce ,) respect to ! design conf]5ce1 ! m>ket monitor %all provide a pres5tation on ! responsibilities ( ! m>ket monitor ?r\gh\t ! ye> & comm5t on key aspects ( ! initial auction design & _! purpose4 7vi7 ,int]net accessibility ( conf]5ce ,! design conf]5ce %all be record$ & made available on an ,int]net ,web site 7?r\gh simultane\s ,web ca/ or o!rwise74 7,d7 ,auction design propos$ ?r\gh exp$it$ rulemak+ 7i7 ,submission to ,secret>y ,! auction exp]t %all1 ) respect to an auction & 9 accordance ) ! timel9e describ$ 9 subsection 7a77#b71 submit to ! ,secret>y an auction design = ! auction 7ref]r$ to 9 ?is section z ! revis$ auction design7 t takes into acc\nt ! fe$back on ! initial auction design provid$ at ! auction conf]5ce = su* auction4 7ii7 ,publication & proposal ,^u receiv+ ! submission ( ! revis$ auction design = an auction by ! auction exp]t pursuant to clause 7i71 ! ,secret>y %all-- 7,i7 make su* modifications to su* revis$ auction design z are necess>y to ensure t ! su* auction design meets ! requirem5ts describ$ 9 clause 7viii72 7,,ii7 make su* o!r modifications to su* revis$ auction design z ! ,secret>y det]m9es appropriate2 & 7,,iii7 publi% & propose a rule = implem5t+ su* auction design = su* auction1 z modifi$ pursuant to subclauses 7,i7 & 7,,ii71 ?r\gh an exp$it$ rulemak+ process4 7iii7 ,submission ( comm5ts to auction exp]t & m>ket monitor ,! ,secret>y %all submit comm5ts receiv$ on an auction design publi%$ "u clause 7ii77,,iii7 to ! auction exp]t & ! m>ket monitor to consid] = modification ( su* auction design4 7iv7 ,review ( comm5ts by auction exp]t & m>ket monitor ,! m>ket monitor & auction exp]t %all review su* comm5ts &1 )9 "o mon? ( ! receipt ( su* comm5ts pursuant to clause 7iii71 %all ea* provide public comm5t on su* comm5ts4 7v7 ,det]m9ation ( *anges to auction design ,tak+ into consid]ation ! comm5ts submitt$ to ! auction exp]t & m>ket monitor pursuant to clause 7iii71 su* auction exp]t %all det]m9e if any *anges %\ld be made 9 ! auction design publi%$ "u clause 7ii77,,iii7 = an auction 9 response to su* comm5ts4 ,if ! auction exp]t det]m9es t *anges %\ld be made 9 su* design 9 response to su* comm5ts1 ! auction exp]t %all submit to ! ,secret>y an auction design 7ref]r$ to 9 ?is section z ! fur!r revis$ auction design7 = su* auction4 7vi7 ,adoption & publication ( auction design ,! ,secret>y %all adopt z ! auction design to be us$ = purposes ( an auction conduct$ "u ! demon/ration project ei!r-- 7,i7 ! fur!r revis$ auction design = su* auction1 modifi$ z necess>y by ! ,secret>y to ensure t su* auction design meets ! requirem5ts describ$ 9 clause 7viii7 7&1 if su* design is s e/abli%$1 %all publi% by rule su* design72 or 7,,ii7 ! auction design publi%$ "u clause 7ii77,,iii7 = su* auction 7&1 if su* design is s select$ despite a fur!r revis$ auction design hav+ be5 submitt$ to ! ,secret>y "u clause 7v71 %all notify ! auction exp]t & m>ket monitor (1 & publi% 9 ! ,f$]al ,regi/]1 ! reasons = elect+ to e/abli% ! revis$ auction design in/ead ( ! fur!r revis$ auction design74 7vii7 ,exp$it$ rulemak+ process def9$ ,9 ?is subp>agraph1 ! t]m exp$it$ rulemak+ process means a process ( publication ( ! revis$ auction design 7&1 z applicable1 ! fur!r revis$ auction design7 & solicitation ( public comm5ts on su* design4 ,! provisions ( section #ahga7;b77#a7 %all n apply to su* process4 7viii7 ,requirem5ts describ$ ,= purposes ( ?is p>agraph1 ! requirem5ts describ$ 9 ?is clause are requirem5ts t1 ) respect to an auction design-- 7,i7 ! rates ( paym5t "u su* auction design d n result 9 a dim9ution ( access to m>ket-pric$ items & s]vices = individuals entitl$ to b5efits "u "p ,a or enroll$ "u "p ,b 9 ! eligible auction areas 9 :i* ! demon/ration project is conduct$ or ( ! quality ( su* items & s]vices t are furni%$ to su* individuals 9 su* areas2 7,,ii7 ! lead product propos$ 9 su* auction design = ea* product category has be5 select$ to be s propos$ bas$ ^u ! hi/orical price & utilization ( ! product "u ?is "p2 & 7,,iii7 ! weights assign$ "u p>agraph 7#c77;,b77iv7 to products t are n lead products take into consid]ation input provid$ on su* weights by provid]s at ! design conf]5ce = ! applicable auction4 7#c7 ,conduct ( auction 7,a7 ,9 g5]al ,! m>ket monitor %all1 consi/5t ) subsection 7a77#b77;,e7 & 9 accordance ) ! auction design adopt$ "u p>agraph 7#b77;,d71 conduct auctions 7ea* 9 ?is section ref]r$ to z a m>ket-pric$ auction7 among pot5tial bidd]s t are id5tifi$ z eligible bidd]s "u subp>agraph 7,b77ii7 by c>ry+ out ! activities describ$ 9 subp>agraph 7,b7 & subp>agraph 7,c77i7 & su* o!r activities z specifi$ by ! ,secret>y4 7,b7 ,m>ket monitor actions be=e auction date ,9 conduct+ a m>ket-pric$ auction1 ! m>ket monitor %all 7subject1 z appropriate1 to review by ! ,secret>y71 on a date t is prior to ! date ( su* auction1 c>ry out ! foll[+3 7i7 ,detail auction rules ,detail auction rules & processes t are consi/5t ) ! auction design adopt$ "u p>agraph 7#b77;,d74 ,! rules & processes describ$ 9 ! prec$+ s5t5ce %all1 ) respect to an auction1 include ! foll[+3 7,i7 ,! requirem5ts t an entity mu/ meet 9 ord] to be consid]$ an eligible bidd] "u subp>agraph 7,e77ii7 = purposes ( su* auction4 7,,ii7 ,processes ?r\gh :i* x w be det]m9$ = su* auction1 z a function ( bids submitt$ by eligible bidd]s at su* auction1 ! eligible bidd]s = lead products t are to be aw>d$ contracts "u ?is section & ! prices = all products t are 9 ! same product category z su* lead product4 7,,iii7 ,p]=mance obligations ( su* eligible bidd]s t are aw>d$ su* contracts1 gu>antee requirem5ts appli$ "u ! demon/ration program1 & p5alties t w apply 9 ! case ( su* an eligible bidd] t is aw>d$ su* a contract & t fails satisfy ! t]ms ( su* contract or su* requirem5ts4 7ii7 ,id5tify eligible bidd]s ,review all applications = pot5tial bidd]s seek+ to be eligible bidd]s 9 ! auction & id5tify1 = purposes ( su* auction1 ! eligible bidd]s 7z def9$ 9 subp>agraph 7,e77ii77 by eligible auction area4 7iii7 ,specify t>get capacity = eligible bidd]s ,specify1 ) respect to ea* eligible bidd] = su* auction1 a t>get p]c5tage = a product category t repres5ts ! p]c5tage ( ! project$ m>ket = su* product 9 an eligible auction area & contract p]iod t x is e/imat$ t ! eligible bidd] w\ld h ! capacity to s]ve4 ,ea* su* t>get p]c5tage %all be det]m9$ z foll[s3 7,i7 ,9 ! case ( an eligible bidd] ) hi/oric capacity 9 an auction area ) respect to ! lead product 9 su* product category1 ! t>get p]c5tage %all be det]m9$ bas$ on ! hi/oric capacity = su* bidd] = su* product4 7,,ii7 ,9 ! case ( an eligible bidd] t has no hi/oric capacity 9 an auction area ) respect to su* lead product1 ! t>get p]c5tage %all be #a p]c5t ( ! project$ m>ket = su* product4 7iv7 ,set product weights 7,i7 ,9 g5]al ,assign to ea* product 7categoriz$ by ! heal? c>e common proc$ure cod+ sy/em code7 t is 9 ! same product category z a lead product a weight t is express$ z a numb]4 7,,ii7 ,weight am\nt = lead product ,) respect to a product category describ$ 9 clause 7i71 ! lead product 9 su* product category %all1 = purposes ( su* clause1 be assign$ a weight ( #a4j4 7,c7 ,auction ,9 conduct+ a m>ket-pric$ auction1 ! m>ket monitor or ,secret>y 7z applicable7 %all1 dur+ su* auction1 c>ry out ! foll[+3 7i7 ,e/abli%m5t ( cle>+ price ,! m>ket monitor 7subject1 z appropriate1 to review by ! ,secret>y7 %all e/abli% a cle>+ price = ea* lead product select$ "u subp>agraph 7,a7 = ea* eligible area4 ,su* cle>+ price %all1 subject to clause 7iii7 & ) respect to a lead product1 be equal to ! price 7ref]r$ to 9 ?is clause z ! t>get price7 specifi$ 9 ! bid submitt$ by an eligible bidd] ) respect to su* product & su* area t1 9 conjunction ) all bids submitt$ by eligible bidd]s = su* product & su* area t specify prices t are less ?an su* t>get price1 w provide = ! total project$ volume det]m9$ by ! ,secret>y to be ne$$ to fulfill dem& = su* product "u ?is title 9 su* area 7z det]m9$ ?r\gh ! use ( t>get p]c5tages specifi$ "u subp>agraph 7,b77iii774 7ii7 ,aw>d+ ( contracts 7,i7 ,9 g5]al ,! ,secret>y %all aw>d1 pursuant to an auction = a contract p]iod & eligible auction area1 a contract = products 9 a product category to ea* eligible bidd] ^: bid submitt$ = ! lead product 9 su* product category = su* area is at or bel[ ! cle>+ price e/abli%$ = su* lead product & area pursuant to clause 7i74 7,,ii7 ,m&atory acceptance ( contract ,an eligible bidd] t has be5 aw>d$ a contract "u subclause 7,i7 bas$ on a bid describ$ 9 su* subclause by su* bidd] %all be treat$1 ^u ! conclusion ( ! auction ) respect to :i* su* contract is aw>d$1 z hav+ agre$ to & accept$ ! contract1 includ+ ! requirem5ts describ$ 9 subclauses 7,,iii7 & 7,,iv71 bas$ on ! price ( items includ$ 9 su* bid4 7,,iii7 ,volume ( products "u contract ,a contract aw>d$ to an eligible bidd] "u subclause 7,i7 ) respect to m>ket-pric$ items & s]vices 9 a product category = an eligible auction area & contract p]iod %all include a requirem5t t su* bidd] w furni% su* items & s]vices 9 suffici5t quantities to meet ! ne$s ( individuals = su* items & s]vices 9 ! eligible auction area dur+ su* p]iod4 ,an eligible bidd] %all n satisfy ! suffici5t quantities requirem5t describ$ 9 ! prec$+ s5t5ce unless ! bidd] furni%es ! p]c5tage ( ! m>ket = su* item or s]vice 9 su* area t is equal to ! t>get p]c5tage specifi$ = su* bidd] = ! lead product = su* category "u subp>agraph 7,b77iii7 or1 if less]1 ! p]c5tage ( su* m>ket 9 su* area & p]iod t seeks su* item or s]vice f su* bidd]4 7,,iv7 ,duration ( contract ,a contract aw>d$ "u subclause 7,i7 %all be valid = #b ye>s4 7iii7 ,rule if total bids inadequate to fulfill dem& ,9 ! case t ! capacity repres5t$ by all bids submitt$ by eligible bidd]s = a lead product = an eligible area does n provide = ! total project$ volume det]m9$ by ! ,secret>y to be ne$$ to fulfill dem& = su* product "u ?is title 9 su* area1 ! ,secret>y %all-- 7,i7 e/abli% a cle>+ price = su* lead product & area t is equal to ! initial bid price e/abli%$ at su* auction by ! m>ket monitor = su* product & area &1 pursuant to clause 7ii77,i71 aw>d contracts to all eligible bidd]s = su* lead product & area ^: bid submitt$ = su* product & area is at or bel[ su* price2 7,,ii7 ann\nce ! rema9+ aggregate supply ne$$ = su* product & area 9 ord] to fulfill dem& = su* product "u ?is title 9 su* area2 & 7,,iii7 conduct among eligible bidd]s an additional auction r\nd1 9 su* mann] z is specifi$ by ! ,secret>y1 to fulfill su* rema9+ supply4 7,d7 ,ann\ncem5t ( in=mation aft] auction ,imm$iately aft] a m>ket-pric$ auction is complet$1 ! ,secret>y %all publi% on ! ,int]net ,web site ( ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices & 9 ! ,f$]al ,regi/] ! foll[+3 7i7 ,a li/ ( eligible bidd]s aw>d$ contracts "u su* auction4 7ii7 ,! price det]m9$ at su* auction = ea* product 9 a product category t is subject to ! auction4 7,e7 ,bid-relat$ t]ms def9$ ,= purposes ( ?is section3 7i7 ,! t]m bid means1 ) respect to a lead product 9 a product category t is subject to a m>ket-pric$ auction "u ! demon/ration project1 an (f] made at ! auction by an eligible bidd] to furni% a lead product 9 a volume specifi$ 9 su* bid = a p>ticul> price & "t p]iod = "o or m eligible auction areas4 7ii7 ,! t]m eligible bidd] means1 ) respect to an auction & an eligible auction area & lead product1 a suppli] t-- 7,i7 applies to ! ,secret>y to p>ticipate 9 su* auction ) respect to su* area & lead product2 7,,ii7 is id5tifi$ by ! ,secret>y z a suppli] ( a m>ket-pric$ item or s]vice t is ! subject ( a m>ket-pric$ auction 9 an eligible auction area2 7,,iii7 w\ld meet ! lic5sure & p]=mance gu>antee requirem5ts "u section #ahdg7;a77#a77;,g7 if su* requirem5ts appli$ = purposes ( auctions conduct$ "u ! demon/ration project 9 ! same mann] t !y apply ) respect to su* section2 & 7,,iv7 meets su* o!r lic5sure1 bid-bond1 & o!r requirem5ts z ! ,secret>y may specify4 7#d7 ,monitor+ access & quality 7,a7 ,9 g5]al ,! ,secret>y1 9 consultation ) ! m>ket monitor1 %all monitor ! p]=mance ( eligible bidd]s t are aw>d$ contracts "u p>agraph 7#c77;,c77ii7 & ! effects ( ! demon/ration project to ensure compliance ) ! requirem5ts ( ?is section1 includ+ ! requirem5ts & obligations e/abli%$ 9 ! auction design adopt$ "u p>agraph 7#b77;,d77v74 7,b7 ,provide transp>5cy ( in=mation ,! m>ket monitor %all make publicly available ! numb] ( suppli]s provid+ m>ket-pric$ items & s]vices 9 an eligible auction area dur+ ea* ye> ( ! op]ation ( ! demon/ration project4 7,c7 ,en=cem5t ,if ! ,secret>y1 aft] consultation ) ! m>ket monitor1 det]m9es t !re has be5 a mat]ial failure ( an eligible bidd] t has be5 aw>d$ a contract "u p>agraph 7#c77;,c77ii7 to comply ) su* requirem5ts1 ! ,secret>y1 aft] consultation ) ! m>ket monitor1 %all implem5t1 consi/5t ) subp>agraph 7,d71 en=cem5t measures1 :i* may include ! t]m9ation ( a contract aw>d$ "u p>agraph 7#c77;,c77ii74 7,d7 ,en=cem5t measures 7i7 ,w>n+ lett]s & opportunity = corrective action ,! ,secret>y %all provide = ! foll[+ be=e t]m9at+1 pursuant to subp>agraph 7,b71 a contract aw>d$ "u p>agraph 7#c77;,c77ii73 7,i7 ,w>n+ lett] ,! ,secret>y %all issue a =mal w>n+ lett] at lea/ #ij days be=e ! date on :i* ! ,secret>y t]m9ates su* contract4 ,! w>n+ lett] %all describe ! reason 7or reasons7 = ! t]m9ation4 7,,ii7 ,opportunity = corrective action ,! ,secret>y %all provide an opportunity = ! suppli] to take corrective action to come into compliance ) ! contract & avoid t]m9ation ( ! contract4 7ii7 ,additional consequ5ces ( t]m9ation ,9 ! case ( a t]m9ation ( su* a contract ) an eligible bidd]1 ! ,secret>y may require =feiture ( am\nts submitt$ z a bid & p]=mance bond pursuant to section #ahdg7;a77#a77;,g77ii74 7d7 ,application ( competitive acquisition program provisions ,9 implem5t+ ! demon/ration project "u ?is section1 ! provisions ( section #ahdg7;b7 %all be appli$ z foll[s3 7#a7 ,p>agraph 7#c7 %all apply1 except t1 = purposes ( contracts aw>d$ "u ! demon/ration project1 subp>agraph 7,b7 ( su* p>agraph %all be appli$ by sub/itut+ #b ye>s = #c ye>s4 7#b7 ,p>agraph 7#d7 %all apply4 7#c7 ,p>agraph 7#e7 %all apply1 except t-- 7,a7 ! ref]5ce 9 subp>agraph 7,a7 ( su* p>agraph to subsection 7a77#b7 is deem$ a ref]5ce to subsection 7b7 ( ?is section2 & 7,b7 ! ref]5ce 9 subp>agraph 7,b77i7 ( su* p>agraph to subp>agraph 7,a7 is deem$ a ref]5ce to subsection 7a7 ( ?is section4 7#d7 ,p>agraph 7#g7 %all n apply4 7#e7 ,p>agraph 7#h7 %all apply4 7#f7 ,p>agraph 7#i7 %all apply1 except t su* p>agraph %all be appli$ z if a ref]5ce to a bidd+ program includes a ref]5ce to ! demon/ration project4 7#g7 ,p>agraph 7#aj7 %all apply1 except t su* p>agraph %all be appli$ z if a ref]5ce to a competitive acquisition program includes a ref]5ce to ! demon/ration project4 7#h7 ,p>agraph 7#aa7 %all n apply1 except t-- 7,a7 ! p5d5cy ( any claim = review "u ?is section %all n delay any auction conduct$ pursuant to ?is section2 & 7,b7 !re %all be no adm9i/rative or judicial review ( any claim to enjo9 ! op]ation ( a m>ket-pric$ auction conduct$ dur+ ! fir/ r\nd ( ! demon/ration project4 7e7 ,transp>5cy requirem5ts = demon/ration project ,9 implem5t+ ! demon/ration project1 ! ,secret>y %all provide = ! publication1 on an ,int]net ,web site op]at$ by ! ,secret>y1 ( ! foll[+ in=mation ) respect to an auction3 7#a7 ,! qualifications necess>y to be an eligible bidd]4 7#b7 ,! /&>ds develop$ = purposes ( subsection 7c77#b77;,b77ii77,,ii74 7#c7 ,! calculation ( ! total m>ket capacity ( an eligible auction area = purposes ( specify+ ! t>get p]c5tage "u subsection 7c77#c77;,b77iii7 = eligible bidd]s 9 ! auction = su* area4 7#d7 ,! process = solicit+ & accept+ bids = purposes ( subsection 7c77#c77;,d77ii74 7#e7 ,= purposes ( su* subsection-- 7,a7 ! numb] ( eligible bidd]s at ! auction2 7,b7 ! numb] ( eligible bidd]s at ! auction t 7 aw>d$ a contract "u su* subsection at ! auction2 & 7,c7 ) respect to prospective bidd]s at ! auction t 7 det]m9$ by ! ,secret>y n to be eligible bidd]s-- 7i7 ! specific reasons = su* det]m9ation2 & 7ii7 a means & process by :i* su* prospective bidd]s may appeal1 or o!rwise obta9 a review (1 su* det]m9ation4 7#f7 ,! calculation ( & compliance ) ! requirem5t ( section #ahdg7;b77#f77;,d71 z made applicable to ! demon/ration project by subsection 7d74 7f7 ,reliance on auction exp]t & m>ket monitor 9 e/abli%+ & op]at+ m>ket-,pric+ demon/ration project2 advisory committee report & monitor+ 7#a7 ,auction exp]t & m>ket monitor 7,a7 ,9 g5]al ,! ,secret>y %all1 consi/5t ) subsection 7a77#b77;,a7 & ?r\gh ! ,(fice ( ! ,assi/ant ,secret>y = ,plann+ & ,evaluation1 ent] into a contract ) an individual to s]ve z ! auction exp]t & a contract ) an individual to s]ve z a m>ket monitor to assi/ 9 ! design1 developm5t1 implem5tation & function+ ( ! auctions to be conduct$ pursuant to subsection 7c74 ,"u ea* su* contract1 ! auction exp]t & m>ket monitor %all report & be acc\ntable to ! ,secret>y 9 ! mann] describ$ 9 ?is section4 7,b7 ,selection ( auction exp]t & m>ket monitor2 t]m2 access to in=mation 7i7 ,competitive process ,! selection ( ! individual to s]ve z ! auction exp]t & z a m>ket monitor "u subp>agraph 7,a7 %all be und]tak5 ?r\gh a competitive process4 7ii7 ,disqualifications ,an individual may n be select$ z ! auction exp]t if su* individual-- 7,i7 is a curr5t or =m] employee ( ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices2 7,,ii7 is a curr5t or =m] contractor = ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices t p>ticipat$ 9 ! implem5tation ( ! competitive acquisition program "u section #ahdg7;a72 7,,iii7 does n h significant exp]i5ce 9 implem5t+ auctions ( simil> complexity 9 ,gov]nm5t programs2 or 7,,iv7 does n h appropriate educational cr$5tials4 7iii7 ,access to in=mation ,! ,secret>y %all make available to ! auction exp]t & ! m>ket monitor all applicable in=mation 7includ+ confid5tial in=mation7 on ! relevant m>kets ?r\gh\t ! duration ( ! demon/ration project4 7iv7 ,t]m ( contract ,! contract = ! auction exp]t & = ! m>ket monitor "u ?is p>agraph %all be = a p]iod ( #f ye>s4 7#b7 ,reports 7,a7 ,semiannual reports to ,secret>y ,! m>ket monitor %all provide to ! ,secret>y semiannual reports 9 ! initial two ye>s ( ! demon/ration project & annual reports 9 ea* subsequ5t ye> ( ! demon/ration project on ! developm5t & op]ations ( ! demon/ration project4 ,9 ea* report1 ! m>ket monitor %all-- 7i7 id5tify pot5tial problems ) ! demon/ration project2 & 7ii7 recomm5d solutions to pot5tial problems s id5tifi$4 7,b7 ,annual report ,! m>ket monitor %all submit to ! ,committees on ,ways & ,means & ,en]gy & ,comm]ce ( ! ,h\se ( ,repres5tatives & ! ,committee on ,f9ance ( ! ,s5ate an annual report on ! op]ation & function+ ( ! demon/ration project4 ,ea* su* report %all include in=mation on-- 7i7 pot5tial problems ) ! project2 7ii7 recomm5d$ solutions to problems id5tifi$ pursuant to clause 7i72 7iii7 ! appropriat5ess ( ,,hcpcs codes select$ = auctions2 7iv7 an evaluation on ! ability ( individuals eligible = b5efits "u ?is "p to obta9 items & s]vices subject to ! demon/ration project2 7v7 any adv]se heal? effects result+ f implem5tation ( ! project2 7vi7 any mat]ial det]ioration 9 ! quality ( items & s]vices provid$ "u ! project2 7vii7 ! co/s ( any prev5table or prolong$ hospitalizations due to lack ( timely access to m>ket-pric$ items & s]vices2 & 7viii7 any negative bus9ess consequ5ces to ! suppli] ( any m>ket-pric$ items & s]vices occurr+ z a result ( errors made 9 ! conduct ( ! project4 4 7b7 ,lic5sure requirem5ts & f9ancial assurances "u competitive bidd+ ,section #ahdg7;a77#a7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aciew-#c7;a77#a77 is am5d$ by add+ at ! end ! foll[+ new subp>agraphs3 7,g7 ,requir+ ,/ate lic5sure & p]=mance gu>antees = bidd+ entities ,) respect to r\nds ( competitions beg9n+ "u ?is subsection on or aft] ! date ( enactm5t ( ?is subp>agraph1 ! ,secret>y may n accept a bid f an entity = an area unless1 z ( ! deadl9e = bid submission-- 7i7 ! entity meets applicable ,/ate lic5sure requirem5ts = su* area = all items 9 su* bid = a product category2 & 7ii7 ! entity has submitt$ a ca% deposit z a bid & p]=mance bond 9 an am\nt det]m9$ by ! ,secret>y aft] consultation ) ! auction exp]t1 except t ! ,secret>y may1 9 ! ,secret>y's sole discretion1 accept a lett] ( cr$it f a f9ancial in/itution acceptable to ! ,secret>y 9 lieu ( ! ca% deposit requir$ to be submitt$ "u ?is clause4 7,h7 ,treatm5t ( bid & p]=mance bonds submitt$ 7i7 ,= successful bidd]s ,! ,secret>y %all reta9 z a p]=mance gu>antee ! deposit submitt$ by a suppli] t is select$ at an auction conduct$ pursuant to subp>agraph 7,g77ii7 & su* deposit-- 7,i7 %all be return$ to ! entity )9 #ij days ( ! date ( completion ( ! contract2 or 7,,ii7 %all be reta9$ by ! ,secret>y if ! contract is t]m9at$ be=e ! expiration ( ! contract4 7ii7 ,unsuccessful bidd]s ,if a bidd+ entity submits a bid t is n accept$ = an area1 ! bid & p]=mance deposit submitt$ = ! entity = su* area %all be return$ )9 #ij days ( ! date ( notice ( nonacceptance4 4 7c7 ,cl>ification ab\t individual self-,adju/m5t = (f-!-,%elf or?otics 7#a7 ,9 g5]al ,section #ahdg7;a77#b77;,c7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aciew-#c7;a77#b77;,c77 is am5d$-- 7,a7 by ins]t+ furni%$ to an individual aft] section #ahfa7s77#i72 7,b7 by ins]t+ aft] m9imal self-adju/m5t ! foll[+3 by t individual 7& n by ano!r p]son72 & 7,c7 by /rik+ to fit to ! individual & ins]t+ to fit to t individual4 7#b7 ,effective date ,! am5dm5ts made by p>agraph 7#a7 %all apply to (f-!-%elf or?otics 7z def9$ 9 section #ahdg7;a77#b77;,c7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #aciew-#c7;a77#b77;,c771 z am5d$ by p>agraph 7#a77 furni%$ 9 r\nds ( competitive bidd+ "u section #ahdg ( su* ,act 7#db ,u4,s4,c4 #aciew-#c7 initiat$ on or aft] su* date1 z soon z practicable aft] ! date ( ! enactm5t ( ?is ,act1 z ! ,secret>y ( ,heal? & ,human ,s]vices det]m9es appropriate4 ,su* am5dm5ts only apply to ! demon/ration project "u section #ahdg;,c ( su* ,act1 z add$ by subsection 7a71 if ! ,secret>y implem5ts competitive bidd+ = su* (f-!-%elf or?otics "u ! competitive bidd+ program "u su* section #ahdg4