Page:United States Statutes at Large Volume 100 Part 3.djvu/192

 100 STAT. 2000

42 USC 1396. Contracts. State and local governments.

PUBLIC LAW 99-509—OCT. 21, 1986 "(A) to the extent that more than 50 percent of the population of the area served by the organization consists of individuals who are entitled to benefits under this title or under a State plan approved under title XIX, or "(B) in the case of an eligible organization that is owned and operated by a governmental entity, only with respect to a period of three years beginning on the date the organization first enters into a contract under this section, and only if the organization has taken and is making reasonable efforts to enroll individuals who are not entitled to benefits under this title or under a State plan approved under title XIX.". (2) SANCTIONS FOR NONCOMPLIANCE.— (A) SUSPENSION OF ENROLLMENT OR PAYMENT FOR NEW

ENROLLEES.—Such subsection is further amended by adding at the end the following new paragraph: "(3) If the Secretary determines that an eligible organization has failed to comply with the requirements of this subsection, the Secretary may provide for the suspension of enrollment of individuals under this section or of payment to the organization under this section for individuals newly enrolled with the organization, after the date the Secretary notifies the organization of such noncompliance.". (B) TERMINATION OF CONTRACT.—Subsection (i)(l)(C) of

such section is amended by striking "and (e)" and insert "(e), and (f)". 42 USC 1395mm note.

(3) EFFECTIVE DATES.—

(A) NEW RESTRICTION.—The amendment made by paragraph (1) shall apply to modifications and waivers granted ' ' after the date of the enactment of this Act. ,, (B) SANCTIONS FOR NONCOMPLIANCE.—The amendments ^, made by paragraph (2) shall take effect on the date of the enactment of this Act. (C) TREATMENT OF CURRENT WAIVERS.—In the case of an eligible organization (or successor organization) that— (i) as of the date of the enactment of this Act, has been granted, under paragraph (2) of section 1876(f) of the Social Security Act, a modification or waiver of the 42 USC 1395mm. requirement imposed by paragraph (1) of that section, ,r{ ' ' but (ii) does not meet the requirement for such modification or waiver under the amendment made by paragraph (1) of this subsection, the organization shall make, and continue to make, reasonable efforts to meet scheduled enrollment goals, consistent with a schedule of compliance approved by the Secretary of Health and Human Services. If the Secretary determines • • • that the organization has complied, or made significant progress towards compliance, with such schedule of compliance, the Secretary may extend such waiver. If the Sec• retary determines that the organization has not complied with such schedule, the Secretary may provide for a sanction described in section 1876(f)(3) of the Social Security Act (as amended by this section) effective with respect to individuals enrolling with the organization after the date the Secretary notifies the organization of such noncompliance. (d) REQUIRING PROMPT PAYMENT OF CLAIMS.—

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