[Congressional Bills 118th Congress] [From the U.S. Government Publishing Office] [S. 4330 Introduced in Senate (IS)] <DOC> 118th CONGRESS 2d Session S. 4330 To amend title XVIII of the Social Security Act to create a Radiation Oncology Case Rate Value Based Payment Program exempt from budget neutrality adjustment requirements, and to amend section 1128A of title XI of the Social Security Act to create a new statutory exception for the provision of free or discounted transportation for radiation oncology patients to receive radiation therapy services. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES May 14, 2024 Mr. Tillis introduced the following bill; which was read twice and referred to the Committee on Finance _______________________________________________________________________ A BILL To amend title XVIII of the Social Security Act to create a Radiation Oncology Case Rate Value Based Payment Program exempt from budget neutrality adjustment requirements, and to amend section 1128A of title XI of the Social Security Act to create a new statutory exception for the provision of free or discounted transportation for radiation oncology patients to receive radiation therapy services. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Radiation Oncology Case Rate Value Based Program Act of 2024'' or the ``ROCR Value Based Program Act of 2024''. SEC. 2. FINDINGS. (a) Findings.--Congress finds the following: (1) Radiation therapy is the careful use of various forms of radiation, such as external beam radiation therapy, to treat cancer and other diseases safely and effectively. Radiation oncologists develop radiation treatment plans and coordinate with highly specialized care teams to deliver radiation therapy. Nearly 60 percent of cancer patients will receive radiation therapy during their treatment. (2) In 2021, the Centers for Medicare & Medicaid Services reported approximately $4,200,000,000 in total spending for radiation oncology services between the Medicare physician fee schedule and hospital outpatient departments. (3) The Centers for Medicare & Medicaid Services has historically faced challenges in determining accurate pricing for services that involve costly capital equipment, resulting in fluctuating payment rates under the Medicare physician fee schedules for services involving external beam radiation therapy. Additionally, the Medicare physician fee schedule has inadequately recognized the professional expertise physicians and nonphysician professionals need to deliver radiation therapy. (4) The current payment systems incentivize greater volumes of care while bundled payments incentivize patient centered, efficient, and high value care. (5) In 2017, the Centers for Medicare & Medicaid Services recognized that the Medicare payment systems were not adequately addressing radiation oncology services, and the Center for Medicare & Medicaid Innovation released a congressionally requested report on the pursuit of an alternative payment model for radiation oncology (referred to in this section as the ``Radiation Oncology Model'') that addresses the issues in the Medicare physician fee schedule and the Medicare hospital outpatient prospective payment system payment methods. (6) Concerns regarding the proposed Radiation Oncology Model included the significant payment reductions proposed in the model that would jeopardize access to high-quality radiation therapy services and the onerous reporting requirements for participating providers. The Radiation Oncology Model saw indefinite implementation delays. (7) It is necessary, therefore, to create a payment program for radiation oncology services that appropriately recognizes the value of quality radiation oncology services through its financial incentives while containing costs and providing patient-centered care. SEC. 3. RADIATION ONCOLOGY CASE RATE VALUE BASED PAYMENT PROGRAM. (a) In General.--Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is amended by adding at the end the following: ``SEC. 1899C. RADIATION ONCOLOGY CASE RATE VALUE BASED PAYMENT PROGRAM. ``(a) Establishment.-- ``(1) In general.--Not later than 1 year after the date of enactment of the ROCR Value Based Program Act, the Secretary shall promulgate regulations, using the procedures described in paragraph (5), establishing a Radiation Oncology Case Rate Value Based Payment Program (referred to in this section as the `ROCR Program') under which per episode payments are provided to radiation therapy providers or radiation therapy suppliers for covered treatment furnished to a covered individual during an episode of care (as such terms are defined in subsection (j)) in accordance with this section. ``(2) Maintaining payment rates during period prior to effective date of regulations.--The Secretary shall not reduce the established payment rates for radiation therapy services under the physician fee schedule under section 1848 or the hospital outpatient prospective payment system under section 1833(t) during the time period beginning on the date of enactment of the ROCR Value Based Program Act and ending on the date that the regulations issued by the Secretary pursuant to paragraph (1) become effective. ``(3) ROCR program goals.--The ROCR Program shall seek to-- ``(A) create stable, unified payments for radiation therapy services under this title; ``(B) reduce disparities in radiation therapy care for Medicare beneficiaries by increasing access to radiation therapy services close to the homes of beneficiaries; ``(C) enhance quality of radiation therapy care through practice accreditation and shorter courses of treatment, when appropriate; ``(D) leverage and encourage the utilization of state-of-the-art technology to improve care and outcomes; and ``(E) protect Medicare resources by achieving reasonable spending reductions in Medicare for radiation therapy services. ``(4) Payments.--Under this section, with respect to covered treatment furnished to covered individuals, payments shall include-- ``(A) per episode payments, as described in subsection (b), to radiation therapy providers or radiation therapy suppliers of radiation therapy services which meet such requirements as the Secretary shall establish by regulation; and ``(B) the health equity achievement in radiation therapy add-on payment described in subsection (g). ``(5) Notice and comment rulemaking.--The Secretary shall promulgate the regulations described in paragraph (1) in accordance with section 553 of title 5, United States Code, and issue an advanced notice of proposed rulemaking and notice of proposed rulemaking with a comment period of not less than 60 days for each. ``(b) Per Episode Payments.-- ``(1) In general.-- ``(A) Payments.--The Secretary shall pay to a radiation therapy provider or radiation therapy supplier an amount equal to 80 percent of the per episode payment amount determined under paragraph 3 (referred to in this section as `the per episode payment amount') for each covered individual furnished covered treatment for an included cancer type to cover all professional and technical services furnished during such treatment by the radiation therapy provider or radiation therapy supplier during an episode of care (as defined in subsection (j)). ``(B) Deductibles and coinsurance.--Subject to subsection (e), the Secretary shall pay the per episode payment amount (subject to any deductible and coinsurance otherwise applicable under part B) to the radiation therapy provider or radiation therapy supplier for an episode of care, as described in subsection (c). ``(2) Per episode payment requirements and timing.-- ``(A) In general.--Subject to subparagraph (B), for each episode of care furnished to a covered individual: ``(i) First-half of payment.--The Secretary shall issue \1/2\ of the payment amount under paragraph (1) prospectively not later than 30 days after the day of the first delivery of covered treatment. ``(ii) Second-half of payment.--The Secretary shall issue, with the exception of an episode of care for treatment of bone or brain metastases and subject to clause (iii), the remaining half of the payment amount under paragraph (1) on the date that is the earlier of-- ``(I) the day the course of covered treatment is scheduled to end; or ``(II) the 90th day of the episode of care. ``(iii) Second-half of payment for bone and brain metastases.--The Secretary shall issue the remaining half of the payment amount under paragraph (1) for an episode of care for treatment of bone or brain metastases on the date that is the earlier of-- ``(I) the day the course of covered treatment is schedule to end; or ``(II) the 30th day of the episode of care. ``(B) Patient death.--If a covered individual dies during treatment, both episode of care payments under subparagraphs (A) and (B) shall be paid to the radiation therapy provider or radiation therapy supplier not later than 30 days after the day of the final delivery of radiation therapy treatment to the covered individual. ``(C) Consistency of payment.-- ``(i) In general.--The per episode payment amount shall not change depending on the site of service. ``(ii) Site of service defined.--For the purposes of this subparagraph, the term `site of service' means the hospital outpatient department or physician office in which radiation therapy treatment is furnished by the radiation therapy provider or radiation therapy supplier. ``(3) Determination of per episode payment amount.-- ``(A) In general.--The Secretary shall determine a per episode payment amount for the professional component and technical component of treatment for each included cancer type. ``(B) Amount.--The Secretary shall determine the per episode payment amount based on national base rates, as described in subsection (d)(1) and as updated in subsection (d)(2). ``(C) Adjustments.--The per episode payment amount shall be subject to-- ``(i) the adjustments as described in subsection (d)(2) and (d)(3); ``(ii) a geographic adjustment, as described in subsection (d)(3)(A); ``(iii) an inflation adjustment, pursuant to which the Secretary shall adjust the per episode payment amount by the percentage increase in the Medicare Economic Index (as described in section 1842 for the professional component payments and the applicable percentage increase in the Hospital Inpatient Market Basket Update (as described in section 1886(b)(3)(B)(i)) for the technical component payments during each 12-month period, and which varies for the professional and technical components of the service; ``(iv) a savings adjustment, as described in subsection (d)(3)(B); ``(v) a health equity achievement in radiation therapy adjustment applicable only to the technical component payments, as described in subsection (g); and ``(vi) a practice accreditation adjustment, as described in subsection (h), that is only applicable to technical component payments. ``(c) Treatment of Incomplete Episodes of Care; Concurrent Treatment.-- ``(1) Incomplete episode of care.--In the case of an incomplete episode of care, payment shall be made to the radiation therapy provider or radiation therapy supplier for services furnished under the physician fee schedule under section 1848 or the hospital outpatient prospective payment system under section 1833(t), as applicable. ``(2) Multiple episodes of care for the same covered individual.--A radiation therapy provider or radiation therapy supplier may initiate a new episode of care for the same beneficiary for the same course of therapy by providing another radiation therapy treatment planning service and billing under an applicable radiation therapy planning trigger code (as defined in subsection (j). ``(3) Concurrent treatments.--In the case where a treatment modality described in subsection (j)(3)(B)(i) is furnished to a covered individual during an episode of care for an included cancer type, payment may be made concurrently for the treatment modality under the applicable payment system under this title with per episode payment under this section for covered treatment during the episode of care. ``(d) National Base Rate.-- ``(1) Determination of national base rates.--For purposes of the Secretary determining the per episode payment amount under subsection (b)(3), the national base rates for the professional component and technical component of radiation therapy services for each included cancer type are based on the M-Code national base rates identified in table 75 (including HCPCS Codes for radiation therapy services and supplies) of the Federal Register on November 16, 2021, 86 Fed. Reg. 63458, 63925. ``(2) Updates to the national base rates.-- ``(A) Annual updates.-- ``(i) In general.--Subject to clause (ii), the Secretary shall annually update the initial national base rates by-- ``(I) in the case of the professional component of the covered treatment, the percentage increase in the Medicare Economic Index; and ``(II) in the case of the technical component of the covered treatment, the applicable percentage increase described in section 1886(b)(3)(B)(i). ``(ii) Payment floor.--For each annual update, the Secretary shall not reduce the national base rates below the established rates from the prior year. ``(B) Periodic updates.-- ``(i) In general.--The Secretary shall, through notice and comment rulemaking, rebase or revise the national base rates in 5-year intervals, beginning on the day that is 5 years after the date the regulations issued pursuant to subsection (a)(1) become effective. ``(ii) Rebasing limit.--The Secretary shall not reduce the national base rates through the process of rebasing by more than 1 percent every 5 years. ``(iii) Input from providers and suppliers.--In rebasing or revising the national base rates pursuant to clause (i), the Secretary shall seek significant input from radiation therapy providers, radiation therapy suppliers, and other stakeholders. ``(C) Rebase and revise defined.--In this subsection: ``(i) Rebase.--The term `rebase' means to move the base year for the structure of costs of the national base rates. ``(ii) Revise.--The term `revise' means types of changes to national base rates other than rebasing, such as using different data sources, cost categories, or price proxies in the national base rates input. ``(D) New technology or services.-- ``(i) In general.--For purposes of this subparagraph, the term `new technology or services' means any technology or services that, after the date of enactment of this section, receives