Title 42, The Public Health and WelfareRelease 119-110
§1395cc–5 Independence at Home Medical Practice Demonstration Program
Title 42 › CHAPTER 7 — SOCIAL SECURITY › SUBCHAPTER XVIII — HEALTH INSURANCE FOR AGED AND DISABLED › Part E — Miscellaneous Provisions › § 1395cc–5
Summary
The Secretary must run a pilot program to test a home-based primary care model led by physicians or nurse practitioners. The goal is to see if teams that visit patients at home and are available 24/7 can cut preventable hospital stays and readmissions, lower emergency room use and overall Medicare costs, avoid duplicated tests, improve health for people with chronic illnesses, and make patients and family caregivers more satisfied. Key terms: Independence at home medical practice — a legal practice led by a physician or nurse practitioner that provides team-based, 24/7 home primary care, uses electronic health records and remote monitoring, has home-care experience, and serves at least 200 patients per year. Applicable beneficiary — a person on Medicare Part A and enrolled in Part B (not in Medicare Advantage or PACE) with 2 or more chronic illnesses, a recent nonelective hospital stay or recent rehab, and at least 2 daily activity dependencies. The Secretary will pick practices (giving preference to high-cost areas and those using health IT) and limit the demo so no more than 20,000 beneficiaries participate. Agreements may last up to 10 years and the program had to start no later than January 1, 2012. The Secretary will set per-person spending targets with a risk corridor. If a practice’s actual Medicare spending for its enrolled patients falls sufficiently below the target, and the practice meets quality goals, the practice can receive an incentive payment equal to a portion (set by the Secretary) of the savings. Nurse practitioners and physician assistants may lead or join teams if state law allows. Practices must report quality and other data and follow quality standards set by the Secretary. The Secretary will evaluate and monitor the program, report findings and best practices to Congress, and may continue to track patients after they leave the practice. The law provides specific administrative funding ($5,000,000 for each fiscal year 2010–2015 and $9,000,000 for fiscal year 2021). The Secretary must end an agreement if a practice fails to show savings in the third consecutive year or fails quality standards any year, and may end agreements for other reasons.
Full Legal Text
Title 42, §1395cc–5
The Public Health and Welfare, Source: USLM XML via OLRC
(a)Establishment
(1)In general
The Secretary shall conduct a demonstration program (in this section referred to as the “demonstration program”) to test a payment incentive and service delivery model that utilizes physician and nurse practitioner directed home-based primary care teams designed to reduce expenditures and improve health outcomes in the provision of items and services under this subchapter to applicable beneficiaries (as defined in subsection (d)).
(2)Requirement
The demonstration program shall test whether a model described in paragraph (1), which is accountable for providing comprehensive, coordinated, continuous, and accessible care to high-need populations at home and coordinating health care across all treatment settings, results in— (A)
(B)preventing hospital readmissions;
(C)reducing emergency room visits;
(D)improving health outcomes commensurate with the beneficiaries’ stage of chronic illness;
(E)improving the efficiency of care, such as by reducing duplicative diagnostic and laboratory tests;
(F)reducing the cost of health care services covered under this subchapter; and
(G)achieving beneficiary and family caregiver satisfaction.
(b)Independence at home medical practice
(1)Independence at home medical practice defined
In this section: (A) In general
(B)Physician
The term “physician” includes, except as the Secretary may otherwise provide, any individual who furnishes services for which payment may be made as physicians’ services and has the medical training or experience to fulfill the physician’s role described in subparagraph (A)(i).
(2)Participation of nurse practitioners and physician assistants
Nothing in this section shall be construed to prevent a nurse practitioner or physician assistant from participating in, or leading, a home-based primary care team as part of an independence at home medical practice if—
(A)all the requirements of this section are met;
(B)the nurse practitioner or physician assistant, as the case may be, is acting consistent with State law; and
(C)the nurse practitioner or physician assistant has the medical training or experience to fulfill the nurse practitioner or physician assistant role described in paragraph (1)(A)(i).
(3)Inclusion of providers and practitioners
Nothing in this subsection shall be construed as preventing an independence at home medical practice from including a provider of services or a participating practitioner described in section 1395u(b)(18)(C) of this title that is affiliated with the practice under an arrangement structured so that such provider of services or practitioner participates in the demonstration program and shares in any savings under the demonstration program.
(4)Quality and performance standards
The Secretary shall develop quality performance standards for independence at home medical practices participating in the demonstration program.
(c)Payment methodology
(1)Establishment of target spending level
The Secretary shall establish an estimated annual spending target, for the amount the Secretary estimates would have been spent in the absence of the demonstration, for items and services covered under parts A and B furnished to applicable beneficiaries for each qualifying independence at home medical practice under this section. Such spending targets shall be determined on a per capita basis. Such spending targets shall include a risk corridor that takes into account normal variation in expenditures for items and services covered under parts A and B furnished to such beneficiaries with the size of the corridor being related to the number of applicable beneficiaries furnished services by each independence at home medical practice. The spending targets may also be adjusted for other factors as the Secretary determines appropriate.
(2)Incentive payments
Subject to performance on quality measures, a qualifying independence at home medical practice is eligible to receive an incentive payment under this section if actual expenditures for a year for the applicable beneficiaries it enrolls are less than the estimated spending target established under paragraph (1) for such year. An incentive payment for such year shall be equal to a portion (as determined by the Secretary) of the amount by which actual expenditures (including incentive payments under this paragraph) for applicable beneficiaries under parts A and B for such year are estimated to be less than 5 percent less than the estimated spending target for such year, as determined under paragraph (1).
(d)Applicable beneficiaries
(1)Definition
In this section, the term “applicable beneficiary” means, with respect to a qualifying independence at home medical practice, an individual who the practice has determined—
(A)is entitled to benefits under part A and enrolled for benefits under part B;
(B)is not enrolled in a Medicare Advantage plan under part C or a PACE program under section 1395eee of this title;
(C)has 2 or more chronic illnesses, such as congestive heart failure, diabetes, other dementias designated by the Secretary, chronic obstructive pulmonary disease, ischemic heart disease, stroke, Alzheimer’s Disease and neurodegenerative diseases, and other diseases and conditions designated by the Secretary which result in high costs under this subchapter;
(D)within the past 12 months has had a nonelective hospital admission;
(E)within the past 12 months has received acute or subacute rehabilitation services;
(F)has 2 or more functional dependencies requiring the assistance of another person (such as bathing, dressing, toileting, walking, or feeding); and
(G)meets such other criteria as the Secretary determines appropriate.
(2)Patient election to participate
The Secretary shall determine an appropriate method of ensuring that applicable beneficiaries have agreed to enroll in an independence at home medical practice under the demonstration program. Enrollment in the demonstration program shall be voluntary.
(3)Beneficiary access to services
Nothing in this section shall be construed as encouraging physicians or nurse practitioners to limit applicable beneficiary access to services covered under this subchapter and applicable beneficiaries shall not be required to relinquish access to any benefit under this subchapter as a condition of receiving services from an independence at home medical practice.
(e)Implementation
(1)Starting date
The demonstration program shall begin no later than January 1, 2012. Agreements with an independence at home medical practice under the demonstration program may cover not more than a 10-year period.
(2)No physician duplication in demonstration participation
The Secretary shall not pay an independence at home medical practice under this section that participates in section 1395jjj of this title.
(3)No beneficiary duplication in demonstration participation
The Secretary shall ensure that no applicable beneficiary enrolled in an independence at home medical practice under this section is participating in the programs under section 1395jjj of this title.
(4)Preference
In approving an independence at home medical practice, the Secretary shall give preference to practices that are—
(A)located in high-cost areas of the country;
(B)have experience in furnishing health care services to applicable beneficiaries in the home; and
(C)use electronic medical records, health information technology, and individualized plans of care.
(5)Limitation on number of practices
In selecting qualified independence at home medical practices to participate under the demonstration program, the Secretary shall limit the number of such practices so that the number of applicable beneficiaries that may participate in the demonstration program does not exceed 20,000. An applicable beneficiary that participates in the demonstration program by reason of the increase from 10,000 to 15,000 in the preceding sentence pursuant to the amendment made by section 50301(a)(1)(B)(i) of the Advancing Chronic Care, Extenders, and Social Services Act shall be considered in the spending target estimates under paragraph (1) of subsection (c) and the incentive payment calculations under paragraph (2) of such subsection for the sixth through tenth years of such program. An applicable beneficiary that participates in the demonstration program by reason of the increase from 15,000 to 20,000 in the first sentence of this paragraph pursuant to the amendment made by section 105 of division CC of the Consolidated Appropriations Act, 2021 shall be considered in the spending target estimates under paragraph (1) of subsection (c) and the incentive payment calculations under paragraph (2) of such subsection for the eighth through tenth years of such program.
(6)Waiver
The Secretary may waive such provisions of this subchapter and subchapter XI as the Secretary determines necessary in order to implement the demonstration program.
(7)Administration
Chapter 35 of title 44 shall not apply to this section.
(f)Evaluation and monitoring
(1)In general
The Secretary shall evaluate each independence at home medical practice under the demonstration program to assess whether the practice achieved the results described in subsection (a).
(2)Monitoring applicable beneficiaries
The Secretary may monitor data on expenditures and quality of services under this subchapter after an applicable beneficiary discontinues receiving services under this subchapter through a qualifying independence at home medical practice.
(g)Reports to Congress
The Secretary shall conduct an independent evaluation of the demonstration program and submit to Congress a final report, including best practices under the demonstration program, including, to the extent practicable, with respect to the use of electronic health information systems, as described in subsection (b)(1)(A)(vi). Such report shall include an analysis of the demonstration program on coordination of care, expenditures under this subchapter, applicable beneficiary access to services, and the quality of health care services provided to applicable beneficiaries.
(h)Funding
For purposes of administering and carrying out the demonstration program, other than for payments for items and services furnished under this subchapter and incentive payments under subsection (c), in addition to funds otherwise appropriated, there shall be transferred to the Secretary for the Center for Medicare & Medicaid Services Program Management Account from the Federal Hospital Insurance Trust Fund under section 1395i of this title and the Federal Supplementary Medical Insurance Trust Fund under section 1395t of this title (in proportions determined appropriate by the Secretary) $5,000,000 for each of fiscal years 2010 through 2015 and $9,000,000 for fiscal year 2021. Amounts transferred under this subsection for a fiscal year shall be available until expended.
(i)Termination
(1)Mandatory termination
The Secretary shall terminate an agreement with an independence at home medical practice if—
(A)the Secretary estimates or determines that such practice did not achieve savings for the third of 3 consecutive years under the demonstration program; or
(B)such practice fails to meet quality standards during any year of the demonstration program.
(2)Permissive termination
The Secretary may terminate an agreement with an independence at home medical practice for such other reasons determined appropriate by the Secretary.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
References in Text
Parts A, B, and C, referred to in subsecs. (c) and (d)(1)(A), (B), are classified to section 1395c et seq., 1395j et seq., and 1395w–21 et seq., respectively, of this title. section 50301(a)(1)(B)(i) of the Advancing Chronic Care, Extenders, and Social Services Act, referred to in subsec. (e)(5), probably means section 50301(a)(1)(B)(i) of the Advancing Chronic Care, Extenders, and Social Services (ACCESS) Act, div. E of Pub. L. 115–123, which amended this section. section 105 of division CC of the Consolidated Appropriations Act, 2021, referred to in subsec. (e)(5), is section 105 of div. CC of Pub. L. 116–260, which amended this section.
Amendments
2020—Subsec. (e)(1). Pub. L. 116–260, § 105(a)(1)(A), substituted “10-year” for “7-year”. Subsec. (e)(5). Pub. L. 116–260, § 105(a)(1)(B), substituted “20,000” for “15,000” in first sentence and “sixth through tenth” for “sixth and seventh” in second sentence and inserted at end “An applicable beneficiary that participates in the demonstration program by reason of the increase from 15,000 to 20,000 in the first sentence of this paragraph pursuant to the amendment made by section 105 of division CC of the Consolidated Appropriations Act, 2021 shall be considered in the spending target estimates under paragraph (1) of subsection (c) and the incentive payment calculations under paragraph (2) of such subsection for the eighth through tenth years of such program.” Subsec. (h). Pub. L. 116–260, § 105(a)(2), inserted “and $9,000,000 for fiscal year 2021” after “2015”. 2018—Subsec. (e)(1). Pub. L. 115–123, § 50301(a)(1)(A), substituted “Agreements” for “An agreement” and “7-year” for “5-year”. Subsec. (e)(5). Pub. L. 115–123, § 50301(a)(1)(B), substituted “15,000” for “10,000” and inserted at end “An applicable beneficiary that participates in the demonstration program by reason of the increase from 10,000 to 15,000 in the preceding sentence pursuant to the amendment made by section 50301(a)(1)(B)(i) of the Advancing Chronic Care, Extenders, and Social Services Act shall be considered in the spending target estimates under paragraph (1) of subsection (c) and the incentive payment calculations under paragraph (2) of such subsection for the sixth and seventh years of such program.” Subsec. (g). Pub. L. 115–123, § 50301(a)(2), inserted “, including, to the extent practicable, with respect to the use of electronic health information systems, as described in subsection (b)(1)(A)(vi)” after “under the demonstration program”. Subsec. (i)(1)(A). Pub. L. 115–123, § 50301(a)(3), substituted “did not achieve savings for the third of 3” for “will not receive an incentive payment for the second of 2”. 2015—Subsec. (e)(1). Pub. L. 114–39 substituted “5-year” for “3-year”.
Statutory Notes and Related Subsidiaries
Effective Date
of 2020 Amendment Pub. L. 116–260, div. CC, title I, § 105(b), Dec. 27, 2020, 134 Stat. 2944, provided that: “The
Amendments
made by subsection (a) [amending this section] shall take effect as if included in the enactment of Public Law 111–148.”
Effective Date
of 2018 Amendment Pub. L. 115–123, div. E, title III, § 50301(b), Feb. 9, 2018, 132 Stat. 190, provided that: “The amendment made by subsection (a)(3) [amending this section] shall take effect as if included in the enactment of Public Law 111–148.”
Reference
Citations & Metadata
Citation
42 U.S.C. § 1395cc–5
Title 42, The Public Health and Welfare
Last Updated
Sep 22, 2026
Release point: 119-110