text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Timely Payment for Veterans' Medical 
  Care Act''.
  
  SEC. 2. AUTHORITY OF SECRETARY OF VETERANS AFFAIRS TO ENTER INTO 
                CONTRACTS WITH ADMINISTRATIVE CONTRACTORS FOR THE 
                PROCESSING OF CLAIMS FOR HOSPITAL CARE AND MEDICAL 
                SERVICES FURNISHED IN NON-DEPARTMENT OF VETERANS AFFAIRS 
                FACILITIES.
  
      (a) In General.--Chapter 17 of title 38, United States Code, is 
  amended by inserting after section 1725 the following new section:
  ``Sec. 1725A. Authority to enter into contracts with administrative 
                contractors
      ``(a) Authority.--(1) The Secretary may enter into contracts with 
  any eligible entity to serve as an administrative contractor with 
  respect to the performance of any or all of the functions described in 
  paragraph (4) or parts of those functions (or, to the extent provided 
  in a contract, to secure performance thereof by other entities).
      ``(2) An entity is eligible to enter into a contract with respect 
  to the performance of a particular function described in paragraph (4) 
  only if--
              ``(A) the entity has demonstrated capability to carry out 
          such function;
              ``(B) the entity complies with such conflict of interest 
          standards as are generally applicable to Federal acquisition 
          and procurement;
              ``(C) the entity has sufficient assets to financially 
          support the performance of such function;
              ``(D) the entity has the ability to accept and process 
          electronic filings of medical records; and
              ``(E) the entity meets such other requirements as the 
          Secretary may impose.
      ``(3)(A) For purposes of this section, the term `administrative 
  contractor' means an agency, organization, or other person with a 
  contract under this section.
      ``(B) With respect to the performance of a particular function in 
  relation to an individual enrolled in the patient enrollment system 
  under section 1705 of this title, the `appropriate' administrative 
  contractor is the administrative contractor that has a contract under 
  this section with respect to the performance of that function in 
  relation to that individual, or non-Department facility.
      ``(4) The functions referred to in this paragraph are the following 
  functions relating to the furnishing of medical care and hospital 
  services in non-Department facilities under section 1725 or 1728 of 
  this title:
              ``(A) Determining the amount of the payments required 
          pursuant to this title to be made to a non-Department facility.
              ``(B) Making payments described in subparagraph (A) 
          (including receipt, disbursement, and accounting for funds in 
          making such payments).
              ``(C) Providing education and outreach to individuals 
          enrolled in the patient enrollment system under section 1705 of 
          this title and providing assistance to those individuals with 
          specific issues, concerns, or problems.
              ``(D) Providing consultative services to institutions, 
          agencies, and other persons to enable them to establish and 
          maintain fiscal records necessary for purposes of this title.
              ``(E) Communicating to non-Department facilities any 
          information or instructions furnished to the administrative 
          contractor by the Secretary, and facilitating communication 
          between such facilities and the Secretary.
              ``(F) Performing the functions relating to non-Department 
          facility education, training, and technical assistance.
              ``(G) Performing such other functions as are necessary to 
          carry out the purposes of this title.
      ``(5) Except to the extent inconsistent with a specific requirement 
  of this section, the Federal Acquisition Regulation applies to 
  contracts under this section.
      ``(b) Contracting Requirements.--(1)(A) Except as provided in laws 
  with general applicability to Federal acquisition and procurement or in 
  subparagraph (B), the Secretary shall use competitive procedures when 
  entering into contracts with administrative contractors under this 
  section, taking into account performance quality as well as price and 
  other factors.
      ``(B) The Secretary may renew a contract with an administrative 
  contractor under this section from term to term without regard to 
  section 5 of title 41, United States Code, or any other provision of 
  law requiring competition, if the administrative contractor has met or 
  exceeded the performance requirements applicable with respect to the 
  contract and contractor, except that the Secretary shall provide for 
  the application of competitive procedures under such a contract not 
  less frequently than once every 5 years.
      ``(C) The Secretary may transfer functions among administrative 
  contractors consistent with the provisions of this paragraph. The 
  Secretary shall ensure that performance quality is considered in such 
  transfers. The Secretary shall provide public notice (whether in the 
  Federal Register or otherwise) of any such transfer (including a 
  description of the functions so transferred, a description of the non-
  Department facilities affected by such transfer, and contact 
  information for the contractors involved).
      ``(D) The Secretary shall provide incentives for administrative 
  contractors to provide quality service and to promote efficiency.
      ``(2) No contract under this section shall be entered into with any 
  administrative contractor unless the Secretary finds that such 
  administrative contractor will perform its obligations under the 
  contract efficiently and effectively and will meet such requirements as 
  to financial responsibility, legal authority, quality of services 
  provided, and other matters as the Secretary finds pertinent.
      ``(3)(A)(i) The Secretary shall develop contract performance 
  requirements to carry out the specific requirements applicable under 
  this title to a function described in subsection (a)(4) and shall 
  develop standards for measuring the extent to which a contractor has 
  met such requirements. Such requirements shall include specific 
  performance duties expected of a medical director of an administrative 
  contractor, including requirements relating to professional relations 
  and the availability of such director to conduct medical determination 
  activities within the jurisdiction of such a contractor.
      ``(ii) In developing such performance requirements and standards 
  for measurement, the Secretary shall consult with non-Department 
  facilities, veterans service organizations, and organizations and 
  agencies performing functions necessary to carry out the purposes of 
  this section with respect to such performance requirements.
      ``(iii) The Secretary shall make such performance requirements and 
  measurement standards available to the public.
      ``(B) The Secretary shall include, as one of the standards 
  developed under subparagraph (A), non-Department facility and veteran 
  satisfaction levels.
      ``(C) All contractor performance requirements shall be set forth in 
  the contract between the Secretary and the appropriate administrative 
  contractor. Such performance requirements--
              ``(i) shall reflect the performance requirements published 
          under subparagraph (A), but may include additional performance 
          requirements;
              ``(ii) shall be used for evaluating contractor performance 
          under the contract; and
              ``(iii) shall be consistent with the written statement of 
          work provided under the contract.
      ``(4) The Secretary shall not enter into a contract with an 
  administrative contractor under this section unless the contractor 
  agrees--
              ``(A) to furnish to the Secretary such timely information 
          and reports as the Secretary may find necessary in performing 
          the functions of the Secretary under this title; and
              ``(B) to maintain such records and afford such access 
          thereto as the Secretary finds necessary to assure the 
          correctness and verification of the information and reports 
          under subparagraph (A) and otherwise to carry out the purposes 
          of this title.
      ``(5) A contract with an administrative contractor under this 
  section may require the administrative contractor, and any of its 
  officers or employees certifying payments or disbursing funds pursuant 
  to the contract, or otherwise participating in carrying out the 
  contract, to give surety bond to the United States in such amount as 
  the Secretary may deem appropriate.
      ``(c) Terms and Conditions.--A contract with any administrative 
  contractor under this section may contain such terms and conditions as 
  the Secretary finds necessary or appropriate and may provide for 
  advances of funds to the administrative contractor for the making of 
  payments by it under subsection (a)(4)(B).
      ``(d) Limitation on Liability of Administrative Contractors and 
  Certain Officers.--(1) No individual designated pursuant to a contract 
  under this section as a certifying officer shall, in the absence of the 
  reckless disregard of the individual's obligations or the intent by 
  that individual to defraud the United States, be liable with respect to 
  any payments certified by the individual under this section.
      ``(2) No disbursing officer shall, in the absence of the reckless 
  disregard of the officer's obligations or the intent by that officer to 
  defraud the United States, be liable with respect to any payment by 
  such officer under this section if it was based upon an authorization 
  (which meets the applicable requirements for such internal controls 
  established by the Comptroller General of the United States) of a 
  certifying officer designated as provided in paragraph (1) of this 
  subsection.
      ``(3)(A) No administrative contractor shall be liable to the United 
  States for a payment by a certifying or disbursing officer unless, in 
  connection with such payment, the administrative contractor acted with 
  reckless disregard of its obligations under its administrative contract 
  or with intent to defraud the United States.
      ``(B) Nothing in this subsection shall be construed to limit 
  liability for conduct that would constitute a violation of sections 
  3729 through 3731 of title 31, United States Code.
      ``(4)(A) Subject to subparagraphs (B) and (D), in the case of an 
  administrative contractor (or a person who is a director, officer, or 
  employee of such a contractor or who is engaged by the contractor to 
  participate directly in the claims administration process) who is made 
  a party to any judicial or administrative proceeding arising from or 
  relating directly to the claims administration process under this 
  title, the Secretary may, to the extent the Secretary determines to be 
  appropriate and as specified in the contract with the contractor, 
  indemnify the contractor and such persons.
      ``(B) The Secretary may not provide indemnification under 
  subparagraph (A) insofar as the liability for such costs arises 
  directly from conduct that is determined by the judicial proceeding or 
  by the Secretary to be criminal in nature, fraudulent, or grossly 
  negligent. If indemnification is provided by the Secretary with respect 
  to a contractor before a determination that such costs arose directly 
  from such conduct, the contractor shall reimburse the Secretary for 
  costs of indemnification.
      ``(C) Indemnification by the Secretary under subparagraph (A) may 
  include payment of judgments, settlements (subject to subparagraph 
  (D)), awards, and costs (including reasonable legal expenses).
      ``(D) A contractor or other person described in subparagraph (A) 
  may not propose to negotiate a settlement or compromise of a proceeding 
  described in such subparagraph without the prior written approval of 
  the Secretary to negotiate such settlement or compromise. Any 
  indemnification under subparagraph (A) with respect to amounts paid 
  under a settlement or compromise of a proceeding described in such 
  subparagraph are conditioned upon prior written approval by the 
  Secretary of the final settlement or compromise.
      ``(E) Nothing in this paragraph shall be construed--
              ``(i) to change any common law immunity that may be 
          available to an administrative contractor or person described 
          in subparagraph (A); or
              ``(ii) to permit the payment of costs not otherwise 
          allowable, reasonable, or allocable under the Federal 
          Acquisition Regulation.
      ``(e) Requirements for Information Security.--(1) An administrative 
  contractor that performs the functions referred to in subparagraphs (A) 
  and (B) of subsection (a)(4) (relating to determining and making 
  payments) shall implement a contractor-wide information security 
  program to provide information security for the operation and assets of 
  the contractor with respect to such functions under this title. An 
  information security program under this paragraph shall meet the 
  requirements for information security programs imposed on Federal 
  agencies under paragraphs (1) through (8) of section 3544(b) of title 
  44, United States Code (other than the requirements under paragraphs 
  (2)(D)(i), (5)(A), and (5)(B) of such section).
      ``(2)(A) Each year an administrative contractor that performs the 
  functions referred to in subparagraphs (A) and (B) of subsection (a)(4) 
  (relating to determining and making payments) shall undergo an 
  evaluation of the information security of the contractor with respect 
  to such functions under this title. The evaluation shall--
              ``(i) be performed by an entity that meets such 
          requirements for independence as the Inspector General of the 
          Department of Health and Human Services may establish; and
              ``(ii) test the effectiveness of information security 
          control techniques of an appropriate subset of the contractor's 
          information systems (as defined in section 3502(8) of title 44, 
          United States Code) relating to such functions under this title 
          and an assessment of compliance with the requirements of this 
          subsection and related information security policies, 
          procedures, standards and guidelines, including policies and 
          procedures as may be prescribed by the Director of the Office 
          of Management and Budget and applicable information security 
          standards promulgated under section 11331 of title 40, United 
          States Code.
      ``(B)(i) The results of independent evaluations under subparagraph 
  (A) shall be submitted promptly to the Inspector General of the 
  Department and to the Secretary.
      ``(ii) The Inspector General of the Department shall submit to 
  Congress annual reports on the results of such evaluations, including 
  assessments of the scope and sufficiency of such evaluations.
      ``(f) Incentives To Improve Contractor Performance in Non-
  Department Facility Education and Outreach.--The Secretary shall use 
  specific claims payment error rates or similar methodology of 
  administrative contractors in the processing or reviewing of claims in 
  order to give such contractors an incentive to implement effective 
  education and outreach programs for non-Department facilities.''.
      (b) Clerical Amendment.--The table of sections at the beginning of 
  such chapter is amended by inserting after the item relating to section 
  1725 the following new item:
  
  ``1725. Authority to enter into contracts with administrative 
                              contractors.''.
target: Timely Payment for Veterans' Medical Care Act This bill authorizes the Department of Veterans Affairs (VA) to enter into contracts with an eligible entity to serve as an administrative contractor with respect to the performance of any or all of the following functions relating to providing medical care and hospital services in non-VA facilities:   determining and making the payments required to be made to a non-VA facility; providing education and outreach to individuals enrolled in the patient enrollment system;  providing consultative services to institutions, agencies, and other persons to enable them to maintain necessary fiscal records;  communicating to non-VA facilities any information or instructions furnished to the administrative contractor by the VA; and  performing functions relating to non-VA facility education, training, and technical assistance.  An administrative contractor that performs such payment-related functions shall implement a contractor-wide information security program. The VA shall use claims payment error rates or similar methodology of administrative contractors in the processing or reviewing of claims in order to give such contractors an incentive to implement effective education and outreach programs for non-VA facilities.
feat_title: Timely Payment for Veterans' Medical Care Act