Provides for interim continuation of the following until the revised risk adjustment methodology required above is implemented by the Secretary: (1) blended rate for specialized programs for frail elderly and at-risk Medicare beneficiaries residing in institutions; and (2) payment methodologies for Medicare demonstration programs for specialized programs for frail elderly or at-risk beneficiaries.
Directs the Secretary to establish a five-year demonstration program to develop and evaluate: (1) payment models that pay appropriately for specialized Medicare+Choice plans that exclusively serve, or serve a disproportionate number of, frail elderly or at-risk beneficiaries; and (2) clinical models that improve outcomes.
Requires the Medicare Payment Advisory Commission (MEDPAC) to study and report to Congress and the Secretary on the feasibility and advisability of establishing a frailty adjustment to the Medicare+Choice risk adjustment methodology that ensures that an appropriate level of payment is made to Medicare+Choice plans that serve a disproportionate number of frail or at-risk beneficiaries.