Revises the calculation of the national standardized annual Medicare+Choice capitation rate used in determining the input-price-adjusted annual national Medicare+Choice capitation rate for a Medicare+Choice payment area for calculation of annual Medicare+Choice capitation rates for 2003.
Eliminates budget neutrality in such calculation for a year other than 2003. Modifies requirements for establishment of standards (other than solvency standards) for provider-sponsored organizations for Medicare+Choice organizations and plans in relation to State laws to avoid duplicative State regulation.
Directs the Secretary of Health and Human Services to conduct a demonstration program under which payment rules for Medicare+Choice organizations are modified in order to promote: (1) the offering of Medicare+Choice plans by preferred provider organizations, of Medicare+Choice plans that provide point-of-sale coverage for other than participating providers, and of MSA plans: and (2) the use of disease management programs by Medicare+Choice plans.
Amends SSA title XVII part C to: (1) suspend the limitation for program reentry for Medicare+Choice organizations for 2003 and 2004; and (2) set forth rules governing specialized Medicare+Choice plans for special needs beneficiaries.
Amends the Consolidated Omnibus Budget Reconciliation Act of 1985 to provide for extension of municipal health service demonstration projects.