,,ii #aafth ,,congress #b;d ,session ,s4 #ciad ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,june #h1 #bjbj,ms4 ,mc,sally introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to amend title ,,xviii of the ,social ,security ,act to ensure prompt coverage of breakthrough devices under the ,medicare program1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,ensuring ,patient ,access to ,critical ,breakthrough ,products ,act of #bjbj4 #b4 ,coverage and payment for breakthrough devices under the ,medicare program 7a7 ,in general ,part ,e of title ,,xviii of the ,social ,security ,act 7#db ,u4,s4,c4 #aciex et seq47 is amended by adding at the end the following new section3 #ahii;,c4 ,coverage of breakthrough devices 7a7 ,breakthrough devices 7#a7 ,in general ,for purposes of this section1 the term breakthrough device means a medical device that is a device 7as defined in section #bja of the ,federal ,food1 ,drug1 and ,cosmetic ,act7 and that is-- 7,a7 provided with review priority by the ,secretary under subsection 7d77#e7 of section #eae of such ,act2 and 7,b7 approved or cleared pursuant to section #eaj7k71 #eac7;f71 or #eae of such ,act for use in treating an indication on or after ,july #a1 #bjai4 ,such term also includes a breakthrough device that is a specified breakthrough device 7as defined in subsection 7e77#a77;,b77 approved or cleared pursuant to section #eaj7k71 #eac7;f71 or #eae of such ,act for use in treating an indication on or after ,december #a1 #bjah4 7#b7 ,limitation on number of #eaj7k7 devices ,with respect to a #e-year period1 in no case may more than five medical devices described in paragraph 7#a7 that are classified under section #eaj7k7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act be covered and paid for under this title by reason of this section during each such #e-year period4 7b7 ,coverage 7#a7 ,transitional coverage 7,a7 ,in general ,during the transitional coverage period 7as defined in subparagraph 7,b77 a breakthrough device shall be-- 7i7 deemed to be reasonable and necessary for purposes of section #ahfb7;a77#a77;,a72 7ii7 deemed to be a medical or other health service for purposes of section #ahfa7s72 7iii7 deemed to be approved for an additional payment under section #ahhf7;d77#e77,k7 7other than with respect to the cost criterion under clause 7ii77,i7 of such section72 7iv7 deemed to be approved for pass-through payment under section #ahcc7t77#f7 and section #ahcc7;i7 7other than with respect to the cost criterion under section #ahcc7t77#f77;,a77iv772 and 7v7 insofar as such breakthrough device may be furnished in a setting for which payment is made under an applicable payment system described in subparagraphs 7,d7 through 7,l7 of subsection 7c77#d71 deemed eligible for an additional payment or payment adjustment1 as the case may be1 pursuant to subsection 7d77#c7 when furnished in a setting for which payment is made under such an applicable payment system during such transitional coverage period4 7,b7 ,transitional coverage period defined ,as used in this section1 the term transitional coverage period means1 with respect to a breakthrough device1 the period that-- 7i7 begins on the date of the approval under section #eae of the ,federal ,food1 ,drug1 and ,cosmetic ,act or of the clearance under section #eaj7k7 of such ,act1 as applicable1 of such device by the ,secretary for the indication described in subsection 7a77#a72 and 7ii7 ends on the last day of the #c-year period that begins on the date that the ,secretary1 pursuant to subsection 7c77#b71 updates the relevant applicable payment system 7as defined in subsection 7c77#d77 to recognize the unique temporary or permanent code or codes assigned under subsection 7c77#a7 to such breakthrough device1 except as provided in subsections 7d77#a77;,b7 and 7d77#b77;,b74 7,c7 ,data used to meet the ,,ntap and pass-through cost criteria ,in determining whether a breakthrough device qualifies for an additional payment under section #ahhf7;d77#e77,k7 or for pass-through payment under section #ahcc7t77#f7 or section #ahcc7;i71 the ,secretary shall use the most recently available data and information on the costs of such breakthrough device1 which may include list prices and invoice prices charged for such breakthrough device4 7#b7 ,process for regular coverage ,for purposes of the application of section #ahfb7;a77#a77;,a7 to a breakthrough device furnished after the transitional coverage period 7as defined in paragraph 7#a77;,b77 for such device1 the ,secretary shall establish a process for the coverage of such breakthrough devices under this title after such period as follows3 7,a7 ,identification of additional evidence 7i7 ,in general ,with respect to a breakthrough device1 not later than #a year after the date of the approval of such device under section #eae of the ,federal ,food1 ,drug1 and ,cosmetic ,act or of the clearance of such device under section #eaj7k7 of such ,act1 as applicable1 the ,secretary shall identify whether any additional data or evidence is required with respect to any indications for such device for purposes of the application of such section #ahfb7;a77#a77;,a7 to such device for such indications4 7ii7 ,non-duplication of data requests ,in carrying out clause 7i7 with respect to a breakthrough device1 the ,secretary shall ensure that data or evidence identified-- 7,i7 does not duplicate data required to be collected by the ,food and ,drug ,administration with respect to such breakthrough device2 7,,ii7 minimizes the administrative burdens of data collection and reporting on providers of services1 suppliers1 and manufacturers of breakthrough devices2 and 7,,iii7 is not otherwise unnecessary or redundant4 7,b7 ,proposal for coverage after the transitional coverage period ,not later than #b years after the date of the approval or clearance of a breakthrough device by the ,food and ,drug ,administration1 the ,secretary shall develop a proposal for coverage under this title of such breakthrough device for such indications as the ,secretary determines to be appropriate1 based on the data and evidence collected under subparagraph 7,a71 for such devices furnished after the transitional coverage period under paragraph 7#a7 for such device4 ,if the ,secretary does not1 on a date that is before the end of such #b-year period1 take action to modify the indications for which coverage of a breakthrough device may be provided under this title after such period1 for purposes of section #ahfb7;a77#a77;,a7 coverage under this title of such breakthrough device shall be made for all indications for which such device is approved under section #eae of the ,federal ,food1 ,drug1 and ,cosmetic ,act or cleared under section #eaj7k7 of such ,act4 7#c7 ,rules of construction ,nothing in this section shall be construed to-- 7,a7 affect the ability of the manufacturer of a breakthrough device to seek approval for pass-through payment status under section #ahcc7t77#f7 or to seek approval for an additional payment under section #ahhf7;d77#e77,k7 insofar as such breakthrough device does not qualify for transitional coverage under paragraph 7#a72 or 7,b7 affect the application and approval process for pass-through payment status under section #ahcc7t77#f7 or for an additional payment under section #ahhf7;d77#e77,k7 in the case of a medical device that is not approved by the ,food and ,drug ,administration as a breakthrough device4 7c7 ,coding 7#a7 ,prompt assignment ,not later than three months after the date of approval or clearance of a breakthrough device by the ,food and ,drug ,administration1 subject to subsection 7b77#a77;,b71 the ,secretary shall assign a unique temporary or permanent code or codes for purposes of coverage and payment for such breakthrough device under the applicable payment systems 7described in paragraph 7#d774 7#b7 ,updates 7,a7 ,,ipps ,the ,secretary shall provide for semiannual updates under the applicable payment system described in paragraph 7#d77;,a7 7relating to the inpatient hospital prospective payment system7 to recognize the code or codes assigned under paragraph 7#a74 7,b7 ,,opps ,the ,secretary shall provide for quarterly updates under the applicable payment system described in paragraph 7#d77;,b7 7relating to the outpatient hospital prospective payment system7 to recognize the code or codes assigned under paragraph 7#a74 7,c7 ,other payment systems ,the ,secretary shall provide for semiannual or quarterly updates1 as the case may be1 under the applicable payment systems described in subparagraphs 7,c7 through 7,l7 of paragraph 7#d7 to recognize the code or codes assigned under paragraph 7#a74 7#c7 ,transparency ,the process for the assignment of a code or codes under this subsection shall provide for public notice and a meaningful opportunity for public comment from affected parties4 7#d7 ,applicable payment systems described ,for purposes of this subsection1 the term applicable payment systems means-- 7,a7 with respect to inpatient hospital services1 the prospective payment system for inpatient hospital services established under section #ahhf7;d72 7,b7 with respect to outpatient hospital services1 the prospective payment system for covered ,,opd services established under section #ahcc7t72 7,c7 with respect to ambulatory surgical center services1 the fee schedule for such services established under section #ahcc7;i72 7,d7 with respect to physicians' services1 the physician fee schedules established under section #ahdh2 7,e7 with respect to covered items of durable medical equipment1 the applicable fee schedules established under section #ahcd2 7,f7 with respect to diagnostic laboratory tests1 the payment amounts under section #ahcd;,a and the fee schedules establish under section #ahdh1 as the case may be2 7,g7 with respect to renal dialysis services furnished by a provider of services or a renal dialysis facility1 the single payment system established under section #ahha7;b77#ad72 7,h7 with respect to inpatient hospital services furnished by rehabilitation facilities1 the prospective payment system established under section #ahhf7;j72 7,i7 with respect to inpatient hospital services furnished by long-term care hospitals1 the prospective payment system under section #ahhf7m72 7,j7 with respect to inpatient hospital services furnished by psychiatric hospitals and psychiatric units1 the prospective payment system under section #ahhf7s72 7,k7 with respect to home health services1 the prospective payment system under section #ahie2 and 7,l7 with respect to items and services1 or a provider of services or supplier1 not described in subparagraphs 7,a7 through 7,k71 the payment system established under this title for such items and services when furnished by such provider of services or supplier4 7d7 ,payment 7#a7 ,inpatient ,hospital ,prospective ,payment ,system3 ,deemed eligibility for breakthrough payment ,the ,secretary shall deem each breakthrough device as approved for an additional payment under section #ahhf7;d77#e77,k7 for the #c-year period that begins-- 7,a7 except as provided in subparagraph 7,b71 on the date that the ,secretary1 pursuant to subsection 7c77#b77;,a71 updates the payment system under section #ahhf7;d7 to recognize the unique temporary or permanent code or codes assigned under subsection 7c77#a7 to such breakthrough device2 or 7,b7 in the case of a device that has not received approval or clearance as a breakthrough device by the ,food and ,drug ,administration before such payment system is updated under subsection 7c77#b77;,a7 to recognize the unique temporary or permanent code or codes assigned under subsection 7c77#a7 to such device1 on the date of such approval or clearance4 ,nothing in this paragraph shall be construed to affect the authority of the ,secretary to use claims data to establish new diagnosis or procedure codes for breakthrough devices or to identify appropriate diagnosis-related groups for the assignment of breakthrough devices under annual rulemaking to carry out section #ahhf7;d77#e77,k74 7#b7 ,outpatient ,prospective ,payment ,system3 ,deemed eligibility for pass-through payment ,the ,secretary shall deem each breakthrough device as approved for pass-through payment under section #ahcc7t77#f7 7including for purposes of section #ahcc7;i77#b77;,d77 during the #c-year period that begins-- 7,a7 except as provided in subparagraph 7,b71 on the date that the ,secretary1 pursuant to subsection 7c77#b77;,b71 updates the payment system under section #ahcc7t7 to recognize the unique temporary or permanent code or codes assigned under subsection 7c77#a7 to such breakthrough device2 or 7,b7 in the case of a device that has not received approval or clearance as a breakthrough device by the ,food and ,drug ,administration before such payment system is updated under subsection 7c77#b77;,b7 to recognize the unique temporary or permanent code or codes assigned under subsection 7c77#a7 to such device1 on the date of such approval or clearance4 ,nothing in this paragraph shall be construed to affect the authority of the ,secretary to use claims data to establish new ambulatory payment classification groups for breakthrough devices or to revise such groups to take into account breakthrough devices under annual rulemaking to carry out section #ahcc7t74 7#c7 ,other payment systems 7,a7 ,in general ,in the case of a breakthrough device that is furnished and for which payment may be made under the payment system established under section #ahcd1 #ahcd;,a1 #ahdh1 #ahha7;b77#ad71 #ahhf7;j71 #ahhf7m71 #ahhf7s71 or #ahie1 or any other provision of this title 7other than sections #ahcc7;i71 #ahcc7t71 and #ahhf7;d771 the ,secretary shall provide for an additional payment for such breakthrough device under such applicable payment system or an adjustment to such applicable payment system1 as the case may be4 ,the payment basis for such additional payment or adjustment1 as the case may be1 shall equal an amount that the ,secretary determines covers the costs of such breakthrough device4 7,b7 ,cost information ,in determining the costs of a breakthrough device for purposes of determining an additional payment or payment adjustment under subparagraph 7,a71 the ,secretary shall use the most recently available data and information on the costs of such breakthrough device1 which may include list prices and invoice prices charged for such breakthrough device4 7,c7 ,rule of construction ,nothing in this paragraph shall be construed to affect the authority of the ,secretary to use claims data to establish new or modify existing ambulatory payment classification groups1 diagnosis-related groups1 level ,,ii ,,hcpcs codes1 or such other groups or codes as the ,secretary may establish under the annual rulemaking authority under the provisions referred to in subparagraph 7,a74 7,d7 ,clinical diagnostic laboratory tests ,an additional payment or payment adjustment under subparagraph 7,a7 for a breakthrough device under the applicable payment system established in section #ahcd;,a may be in the form of an increase to the amount determined for the breakthrough device using cross-walking under section #ahcd;,a7c77#a77;,a71 an extension of the initial period of payment applicable to advance diagnostic laboratory tests under section #ahcd;,a7d77#a77;,a71 and in such other form or manner as the ,secretary determines reflects the costs for such breakthrough device under the relevant provisions of section #ahcd;,a4 7#d7 ,payment for breakthrough devices after the transitional coverage period ,payment for a breakthrough device that is furnished after the conclusion of the transitional coverage period under subsection 7b77#a7 for such device shall be made pursuant to the applicable payment system involved1 taking into account the additional evidence and data collected under subsection 7b77#b74 7e7 ,special rules for certain breakthrough devices 7#a7 ,coverage of specified breakthrough devices 7,a7 ,in general ,subject to the succeeding provisions of this subsection and notwithstanding any other provision of law1 the ,secretary shall provide for coverage and payment pursuant to this section of a specified breakthrough device 7as defined in subparagraph 7,b774 7,b7 ,specified breakthrough device defined ,in this section1 the term specified breakthrough device means a breakthrough device with respect to which no ,medicare benefit category exists4 7#b7 ,period of transitional coverage 7,a7 ,in general ,subject to subparagraph 7,c71 the provisions of subsection 7b77#a7 7relating to the transitional coverage period and payment for breakthrough devices1 including the use of the most recently available data and information on costs7 shall apply to a specified breakthrough device in the same manner as such provisions apply to a breakthrough device4 ,the ,secretary may use methodologies under existing payment systems established under this title1 may provide for appropriate adjustments to such methodologies1 or may establish a new payment methodology under this title1 to provide for payment for a specified breakthrough device to ensure the payment basis for such payment covers costs of the specified breakthrough device4 7,b7 ,report 7i7 ,in general ,with respect to each specified breakthrough device1 the ,secretary shall submit to ,congress a report on the coverage of and payment for such specified breakthrough device under this section that includes the following information3 7,i7 ,the manner in which coverage is provided and payment is made for the specified breakthrough device1 including how such device was classified 7such as an item of durable medical equipment or otherwise7 and the payment methodology the ,secretary applied with respect to such device4 7,,ii7 ,the impact of the availability of the specified breakthrough device to ,medicare beneficiaries1 including impacts on the quality of patient care1 patient outcomes1 and patient experience4 7,,iii7 ,the impact of the availability of the specified breakthrough device to ,medicare beneficiaries on program expenditures under this title4 7,,iv7 ,such other information as the ,secretary determines to be appropriate4 7ii7 ,deadline 7,i7 ,in general ,except as provided in subclause 7,,ii71 the ,secretary shall submit a report required under this subparagraph no later than the end of the transitional period of coverage and payment applicable to such specified breakthrough device4 7,,ii7 ,extension to generate additional data ,if the ,secretary determines that additional data or evidence is required to complete a report required under this subparagraph with respect to a specified breakthrough device1 the deadline under this clause may be extended for an additional two years4 7,c7 ,additional period of transitional coverage to develop additional data ,insofar as the ,secretary determines that additional data or evidence is required to complete a report required under subparagraph 7,b7 with respect to a specified breakthrough device1 the transitional coverage period of coverage and payment for such device shall be extended by the lesser of-- 7i7 two years2 or 7ii7 the amount of additional time required for the submission of the report with respect to such device4 7#c7 ,coverage and payment after the transitional period ,the ,secretary may continue to provide for coverage of and payment for a specified breakthrough device after the end of the transitional period of coverage and payment for breakthrough devices through the national coverage determination process if the ,secretary determines that the specified breakthrough device-- 7,a7 improves the quality of care and patient outcomes2 7,b7 improves the delivery of care2 or 7,c7 reduces spending under this title without reducing the quality of care4 4 7b7 ,study of limit on #eaj7k7 breakthrough devices 7#a7 ,study ,the ,secretary of ,health and ,human ,services shall conduct a study on the effect of the limit under section #ahii;,c7a77#b7 of the ,social ,security ,act1 as added by subsection 7a71 on the number of devices cleared under section #eaj7k7 of the ,federal ,food1 ,drug1 and ,cosmetic ,act 7#ba ,u4,s4,c4 #cfj7k77 that are breakthrough devices for purposes of such section #ahii;,c4 7#b7 ,matters examined ,in conducting the study described in paragraph 7#a71 the ,secretary shall-- 7,a7 determine the number of medical devices cleared under such section #eaj7k7 during the #e-year period beginning on the date of the enactment of this ,act2 7,b7 determine the number of such devices that were not included as breakthrough devices for purposes of such section #ahii;,c by reason of the limitation under subsection 7a77#b7 of such section2 and 7,c7 examine the impact of such limitation on access to such devices for individuals entitled to benefits under part ,a or enrolled in part ,b of title ,,xviii of the ,social ,security ,act 7#db ,u4,s4,c4 #acie et seq47 or both4 7#c7 ,report ,not later than #f years after the date of the enactment of this ,act1 the ,secretary shall submit to ,congress a report on the study conducted under this subsection and shall include such recommendations for legislative or administrative changes as the ,secretary determines to be appropriate4 7c7 ,clarification regarding certain payments 7#a7 ,,ipps new technology payment ,section #ahhf7;d77#e77,k7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acieww7d77#e77,k77 is amended by adding at the end the following new clause3 7x7 ,during the period with respect to which a new medical service or technology is eligible for an additional payment under this subsection by reason of this subparagraph1 any local coverage determination 7as defined in section #ahfi7;f77#b77;,b77 that would affect the coverage of1 or the additional payment under this subsection for1 such new medical service or technology shall have no force or effect in law or regulation4 4 7#b7 ,,opps pass-through payment ,section #ahcc7t77#f7 of the ,social ,security ,act 7#db ,u4,s4,c4 #aciel7t77#f77 is amended by adding at the end the following new subparagraph3 7,k7 ,prohibition on use of local coverage determinations to affect coverage of and payment for pass-through products ,during the period with respect to which a drug1 biological1 or medical device is eligible for an additional payment under this paragraph1 any local coverage determination 7as defined in section #ahfi7;f77#b77;,b77 that would affect the coverage of1 or the additional payment under this paragraph for1 such drug1 biological1 or medical device shall have no force or effect in law or regulation4 4 7#c7 ,effective date ,this subsection1 and the amendments made by this subsection1 shall apply with respect to items and services furnished on or after the date of the enactment of this ,act1 including any such item or service that is eligible on such date for an additional payment under section #ahhf7;d7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acieww7d77 by reason of paragraph 7#e77,k7 of such section or under section #ahcc7t77#f7 of such ,act 7#db ,u4,s4,c4 #acieww7t77#f771 or that would have been so eligible on such date but for a local coverage determination that limits or denies coverage of and such additional payment for the item or service4 7d7 ,conforming amendments 7#a7 ,inpatient ,prospective ,payment ,system ,section #ahhf7;d77#e77,k7 of the ,social ,security ,act 7#db ,u4,s4,c4 #acieww7d77#e77,k771 as amended by subsection 7c77#a71 is amended by adding at the end the following new clause3 7xi7 ,effective for discharges occurring on or after ,october #a1 #bjbj1 in the case of a new medical service or technology that is a breakthrough device 7as defined in section #ahii;,c7a771 the additional payment established for such breakthrough device under this subparagraph shall be made for the #c-year period applicable to such breakthrough device under section #ahii;,c7d77#a74 ,in determining the amount of the additional payment for a breakthrough device under this subparagraph during such #c-year period1 the ,secretary shall apply section #dab4hh7;b7 of title #db1 ,code of ,federal ,regulations 7or any successor regulation71 as if the reference to #ej percent in such section were a reference to #hj percent4 4 7#b7 ,outpatient ,prospective ,payment ,system ,section #ahcc7t77#f77;,c7 of such ,act 7#db ,u4,s4,c4 #aciel7t77#f77;,c77 is amended by adding at the end the following new clause3 7iii7 ,special rule for breakthrough devices ,notwithstanding clause 7i7 or 7ii71 or any other provision of this paragraph to the contrary1 in the case of a breakthrough device 7as defined in section #ahii;,c7a77 that is furnished on or after ,january #a1 #bjba1 payment under this paragraph for such breakthrough device shall be made for the #c-year period applicable to such breakthrough device under section #ahii;,c7d77#b74 ,the provisions of this clause shall also apply for purposes of transitional pass-through payment under section #ahcc7;i77#b77;,d74 4 7#c7 ,competitive bidding program ,section #ahdg7;a7 of such ,act 7#db ,u4,s4,c4 #aciew-#c7;a77 is amended-- 7,a7 in paragraph 7#b77;,a7-- 7i7 by striking and excluding drugs and inserting excluding drugs2 and 7ii7 by inserting before the period at the end the following3 1 and excluding breakthrough devices 7as defined in section #ahii;,c7a772 and 7,b7 in paragraph 7#g71 by adding at the end the following new subparagraph3 7,c7 ,breakthrough devices ,a breakthrough device described in paragraph 7#b77;,a7 that is furnished during the transitional coverage period 7as defined in section #ahii;,c7b77#a77;,b77 applicable to such device under section #ahii;,c4 4 7e7 ,effective date ,this section1 and the amendments made by this section1 shall take effect on the date of the enactment of this ,act and1 unless otherwise specified in this section 7or in an amendment made by this section71 shall apply to breakthrough devices 7as defined in section #ahii;,c7a7 of the ,social ,security ,act1 as added by subsection 7a771 approved or cleared on or after ,july #a1 #bjai1 or1 in the case of a specified breakthrough device 7as defined in such section as so added71 approved or cleared on or after ,december #a1 #bjah4