[DOCID: f:publ173.108] 

MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND MODERNIZATION ACT OF 2003 

Public Law 108-173
108th Congress

SEC. 1013. <> RESEARCH ON OUTCOMES OF HEALTH CARE 
            ITEMS AND SERVICES.

    (a) Research, Demonstrations, and Evaluations.--
            (1) Improvement of effectiveness and efficiency.--
                    (A) In general.--To improve the quality, 
                effectiveness, and efficiency of health care delivered 
                pursuant to the programs established under titles XVIII, 
                XIX, and XXI of the Social Security Act, the Secretary 
                acting through the Director of the Agency for Healthcare 
                Research and Quality (in this section referred to as the 
                ``Director''), shall conduct and support research to 
                meet the priorities and requests for scientific evidence 
                and information identified by such programs with respect 
                to--
                          (i) the outcomes, comparative clinical 
                      effectiveness, and appropriateness of health care 
                      items and services (including prescription drugs); 
                      and
                          (ii) strategies for improving the efficiency 
                      and effectiveness of such programs, including the 
                      ways in which such items and services are 
                      organized, managed, and delivered under such 
                      programs.
                    (B) Specification.--To respond to priorities and 
                information requests in subparagraph (A), the Secretary 
                may conduct or support, by grant, contract, or 
                interagency agreement, research, demonstrations, 
                evaluations, technology assessments, or other 
                activities, including the provision of technical 
                assistance, scientific expertise, or methodological 
                assistance.
            (2) Priorities.--
                    (A) In general.--The Secretary shall establish a 
                process to develop priorities that will guide the 
                research, demonstrations, and evaluation activities 
                undertaken pursuant to this section.
                    (B) Initial list.--Not later than 6 months after the 
                date of the enactment of this Act, the Secretary shall 
                establish an initial list of priorities for research 
                related to health care items and services (including 
                prescription drugs).
                    (C) Process.--In carrying out subparagraph (A), the 
                Secretary--
                          (i) shall ensure that there is broad and 
                      ongoing consultation with relevant stakeholders in 
                      identifying the highest priorities for research, 
                      demonstrations, and evaluations to support and 
                      improve the programs established under titles 
                      XVIII, XIX, and XXI of the Social Security Act;
                          (ii) may include health care items and 
                      services which impose a high cost on such 
                      programs, as well as those which may be 
                      underutilized or overutilized and which may 
                      significantly improve the prevention, treatment, 
                      or cure of diseases and conditions (including 
                      chronic conditions) which impose high direct or 
                      indirect costs on patients or society; and
                          (iii) shall ensure that the research and 
                      activities undertaken pursuant to this section are 
                      responsive to the specified priorities and are 
                      conducted in a timely manner.
            (3) Evaluation and synthesis of scientific evidence.--
 
                    (A) In general.--The Secretary shall--
                          (i) evaluate and synthesize available 
                      scientific evidence related to health care items 
                      and services (including prescription drugs) 
                      identified as priorities in accordance with 
                      paragraph (2) with respect to the comparative 
                      clinical effectiveness, outcomes, appropriateness, 
                      and provision of such items and services 
                      (including prescription drugs);
                          (ii) identify issues for which existing 
                      scientific evidence is insufficient with respect 
                      to such health care items and services (including 
                      prescription drugs);
                          (iii) disseminate to prescription drug plans 
                      and MA-PD plans under part D of title XVIII of the 
                      Social Security Act, other health plans, and the 
                      public the findings made under clauses (i) and 
                      (ii); and
                          (iv) work in voluntary collaboration with 
                      public and private sector entities to facilitate 
                      the development of new scientific knowledge 
                      regarding health care items and services 
                      (including prescription drugs).
                    (B) Initial research.--The Secretary shall complete 
                the evaluation and synthesis of the initial research 
                required by the priority list developed under paragraph 
                (2)(B) not later than 18 months after the development of 
                such list.
                    (C) Dissemination.--
                          (i) In general.--To enhance patient safety and 
                      the quality of health care, the Secretary shall 
                      make available and disseminate in appropriate 
                      formats to prescription drugs plans under part D, 
                      and MA-PD plans under part C, of title XVIII of 
                      the Social Security Act, other health plans, and 
                      the public the evaluations and syntheses prepared 
                      pursuant to subparagraph (A) and the findings of 
                      research conducted pursuant to paragraph (1). In 
                      carrying out this clause the Secretary, in order 
                      to facilitate the availability of such evaluations 
                      and syntheses or findings at every decision point 
                      in the health care system, shall--
                                    (I) present such evaluations and 
                                syntheses or findings in a form that is 
                                easily understood by the individuals 
                                receiving health care items and services 
                                (including prescription drugs) under 
                                such plans and periodically assess that 
                                the requirements of this subclause have 
                                been met; and
                                    (II) provide such evaluations and 
                                syntheses or findings and other relevant 
                                information through easily accessible 
                                and searchable electronic mechanisms, 
                                and in hard copy formats as appropriate.
                          (ii) Rule of construction.--Nothing in this 
                      section shall be construed as--
                                    (I) affecting the authority of the 
                                Secretary or the Commissioner of Food 
                                and Drugs under the Federal Food, Drug, 
                                and Cosmetic Act or the Public Health 
                                Service Act; or
                                    (II) conferring any authority 
                                referred to in subclause (I) to the 
                                Director.
                    (D) Accountability.--In carrying out this paragraph, 
                the Secretary shall implement activities in a manner 
                that-- 
                          (i) makes publicly available all scientific 
                      evidence relied upon and the methodologies 
                      employed, provided such evidence and method are 
                      not protected from public disclosure by section 
                      1905 of title 18, United States Code, or other 
                      applicable law so that the results of the 
                      research, analyses, or syntheses can be evaluated 
                      or replicated; and
                          (ii) ensures that any information needs and 
                      unresolved issues identified in subparagraph 
                      (A)(ii) are taken into account in priority-setting 
                      for future research conducted by the Secretary.
            (4) Confidentiality.--
                    (A) In general.--In making use of administrative, 
                clinical, and program data and information developed or 
                collected with respect to the programs established under 
                titles XVIII, XIX, and XXI of the Social Security Act, 
                for purposes of carrying out the requirements of this 
                section or the activities authorized under title IX of 
                the Public Health Service Act (42 U.S.C. 299 et seq.), 
                such data and information shall be protected in 
                accordance with the confidentiality requirements of 
                title IX of the Public Health Service Act.
                    (B) Rule of construction.--Nothing in this section 
                shall be construed to require or permit the disclosure 
                of data provided to the Secretary that is otherwise 
                protected from disclosure under the Federal Food, Drug, 
                and Cosmetic Act, section 1905 of title 18, United 
                States Code, or other applicable law.
            (5) Evaluations.--The Secretary shall conduct and support 
        evaluations of the activities carried out under this section to 
        determine the extent to which such activities have had an effect 
        on outcomes and utilization of health care items and services.
            (6) Improving information available to health care 
        providers, patients, and policymakers.--Not later than 18 months 
        after the date of enactment of this Act, the Secretary shall 
        identify options that could be undertaken in voluntary 
        collaboration with private and public entities (as appropriate) 
        for the--
                    (A) provision of more timely information through the 
                programs established under titles XVIII, XIX, and XXI of 
                the Social Security Act, regarding the outcomes and 
                quality of patient care, including clinical and patient-
                reported outcomes, especially with respect to 
                interventions and conditions for which clinical trials 
                would not be feasible or raise ethical concerns that are 
                difficult to address;
                    (B) acceleration of the adoption of innovation and 
                quality improvement under such programs; and
                    (C) development of management tools for the programs 
                established under titles XIX and XXI of the Social 
                Security Act, and with respect to the programs 
                established under such titles, assess the feasibility of 
                using administrative or claims data, to--
                          (i) improve oversight by State officials;
                          (ii) support Federal and State initiatives to 
                      improve the quality, safety, and efficiency of 
                      services provided under such programs; and 
                          (iii) provide a basis for estimating the 
                      fiscal and coverage impact of Federal or State 
                      program and policy changes.

    (b) Recommendations.--
            (1) Disclaimer.--In carrying out this section, the Director 
        shall--
                    (A) not mandate national standards of clinical 
                practice or quality health care standards; and
                    (B) include in any recommendations resulting from 
                projects funded and published by the Director, a 
                corresponding reference to the prohibition described in 
                subparagraph (A).
            (2) Requirement for implementation.--Research, evaluation, 
        and communication activities performed pursuant to this section 
        shall reflect the principle that clinicians and patients should 
        have the best available evidence upon which to make choices in 
        health care items and services, in providers, and in health care 
        delivery systems, recognizing that patient subpopulations and 
        patient and physician preferences may vary.
            (3) Rule of construction.--Nothing in this section shall be 
        construed to provide the Director with authority to mandate a 
        national standard or require a specific approach to quality 
        measurement and reporting.

    (c) Research With Respect to Dissemination.--The Secretary, acting 
through the Director, may conduct or support research with respect to 
improving methods of disseminating information in accordance with 
subsection (a)(3)(C).
    (d) Limitation on CMS.--The Administrator of the Centers for 
Medicare & Medicaid Services may not use data obtained in accordance 
with this section to withhold coverage of a prescription drug.
    (e) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $50,000,000 for fiscal year 
2004, and such sums as may be necessary for each fiscal year thereafter.