Page:United States Statutes at Large Volume 111 Part 1.djvu/526

 Ill STAT. 502 PUBLIC LAW 105-33—AUG. 5, 1997 "(iii) may not renew or otherwise extend the duration of an existing agreement with the entity unless the Secretary (in consultation with the Inspector General of the Department of Health and Human Services) provides to the State and to Congress a written statement describing compelling reasons that exist for renewing or extending the agreement. "(C) PERSONS DESCRIBED.—^A person is described in this subparagraph if such person— "(i) is debarred, suspended, or otherwise excluded from participating in procurement activities under the Federal Acquisition Regulation or from participating in nonprocurement activities under regulations issued pursuant to Executive Order No. 12549 or under guidelines implementing such order; or "(ii) is an affiliate (as defined in such Act) of a person described in clause (i). "(2) RESTRICTIONS ON MARKETING,— "(A) DISTRIBUTION OF MATERIALS.— "(i) IN GENERAL.— A managed care entity, with respect to activities under this title, may not distribute directly or through any agent or independent contractor marketing materials within any State— "(I) without the prior approval of the State, and "(II) that contain false or materially misleading information. The requirement of subclause (I) shall not apply with respect to a State until such date as the Secretary specifies in consultation with such State. " (ii) CONSULTATION IN REVIEW OF MARKET MATE- RIALS.— In the process of reviewing and approving such materials, the State shall provide for consultation with a medical care advisory committee. "(B) SERVICE MARKET. — A managed care entity shall distribute marketing materials to the entire service area of such entity covered under the contract under section 1903(m) or section 1903(t)(3). "(C) PROHIBITION OF TIE-INS. —^A managed care entity, or any agency of such entity, may not seek to influence an individual's enrollment with the entity in conjunction with the sale of any other insurance. "(D) PROHIBITING MARKETING FRAUD.— Each managed care entity shall comply with such procedures and conditions as the Secretary prescribes in order to ensure that, before an individual is enrolled with the entity, the individual is provided accurate oral and written information sufficient to make an informed decision whether or not to enroll. " (E) PROHIBITION OF 'COLD-CALL' MARKETING. — Each managed care entity shall not, directly or indirectly, conduct door-to-door, telephonic, or other 'cold-call' marketing of enrollment under this title. " (3) STATE CONFLICT-OF-INTEREST SAFEGUARDS IN MEDICAID RISK CONTRACTING. —A medicaid managed care organization may not enter into a contract with any State under section

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