H.R. 3284House118th Congress (2023-2025)In Committee

Providers and Payers COMPETE Act

To require the Secretary of Health and Human Services to submit an annual report on the impact of certain Medicare regulations on provider and payer consolidation.

Introduced May 15, 2023

AI-Generated Summary

Updated January 20, 2026 at 7:36 AM UTC

The Providers and Payers COMPETE Act requires the Secretary of Health and Human Services to issue an annual report on how Medicare regulations affect the merging and integration of health‑care providers and insurers. It also adds a public‑comment step for any proposed Medicare rule that could significantly influence such consolidation and updates the evaluation of certain Medicare Innovation (CMI) models to consider consolidation effects. The bill targets Medicare rules, health‑care providers, payers, and related entities such as ACOs, Medicare Advantage plans, and pharmacy benefit managers.

Key Provisions

  • Annual report due by December 31 each year starting in 2026 on the aggregate impact of Medicare parts A‑D regulations on provider and payer consolidation.
  • Public‑comment requirement, beginning in 2025, for any notice‑and‑comment rulemaking that could significantly affect provider or payer consolidation.
  • Defines “provider and payer consolidation” (including vertical/horizontal integration of providers, suppliers, ACOs, Medicare Advantage organizations, PDP sponsors, PBMs, pharmacies, and integrated delivery systems) and “applicable payment system” to guide reporting.
  • Amends Section 1115A to require consideration of consolidation effects when evaluating CMI models, effective for models tested after January 1, 2025.

Legislative Activity

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12 earlier actions
HouseCalendars Latest Action

Placed on the Union Calendar, Calendar No. 672.

December 5, 2024

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HouseIntro Referral

Introduced in House

May 15, 2023

HouseIntro Referral

Referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.

May 15, 2023

HouseCommittee

Referred to the Subcommittee on Health.

May 15, 2023

HouseCommittee

Subcommittee Consideration and Mark-up Session Held.

May 17, 2023

HouseCommittee

Forwarded by Subcommittee to Full Committee by the Yeas and Nays: 27 - 0 .

May 17, 2023

HouseCommittee

Committee Consideration and Mark-up Session Held.

May 24, 2023

HouseCommittee

Ordered to be Reported (Amended) by the Yeas and Nays: 49 - 0.

May 24, 2023

HouseCommittee

Committee Consideration and Mark-up Session Held

July 26, 2023

HouseCommittee

Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 23 - 17.

July 26, 2023

HouseCommittee

Reported (Amended) by the Committee on Energy and Commerce. H. Rept. 118-765, Part I.

November 22, 2024

HouseIntro Referral

House Committee on Ways and Means Granted an extension for further consideration ending not later than Dec. 19, 2024.

November 22, 2024

HouseCommittee

Reported (Amended) by the Committee on Ways and Means. H. Rept. 118-765, Part II.

December 5, 2024

HouseCalendars

Placed on the Union Calendar, Calendar No. 672.

December 5, 2024

Bill Text

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Reported in HouseIssued December 5, 2024

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Union Calendar No. 672

118th CONGRESS

2d Session

H. R. 3284

[Report No. 118–765, Parts I and II]

IN THE HOUSE OF REPRESENTATIVES

May 15, 2023

Mr. Burgess (for himself, Mrs. Dingell, Mr. Ferguson, and Mr. Bilirakis) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

November 22, 2024

Reported from the Committee on Energy and Commerce with an amendment

Strike out all after the enacting clause and insert the part printed in italic

November 22, 2024

Referral to the Committee on Ways and Means extended for a period ending not later than December 19, 2024

December 5, 2024

Additional sponsor: Ms. Lee of Nevada

December 5, 2024

Reported from the Committee on Ways and Means with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

Strike out all after the enacting clause and insert the part printed in boldface roman

For text of introduced bill, see copy of bill as introduced on May 15, 2023


A BILL

To require the Secretary of Health and Human Services to submit an annual report on the impact of certain Medicare regulations on provider and payer consolidation.


1.

Short title

This Act may be cited as the Providers and Payers COMPETE Act.

2.

Annual report on the impact of certain Medicare regulations on provider and payer consolidation; public comment on provider and payer consolidation for certain proposed rules

(a)

Annual report

Not later than December 31, 2026, and annually thereafter, the Secretary of Health and Human Services (in this section referred to as the Secretary) shall submit to Congress a report on the impact in the aggregate on provider and payer consolidation with respect to regulations and rules for parts A, B, C, and D of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.) implemented in the calendar year immediately prior to such report. Such report shall include regulations and rules that—

(1)

implement a change to an applicable payment system, a rate schedule, or another payment system under parts A, B, C, or D of such title; or

(2)

result in a significant rule effecting provider or payer consolidation.

(b)

Public comment on impact to provider and payer consolidation

Beginning for 2025, as part of any notice and comment rulemaking process that could result in a significant rule affecting provider or payer consolidation with respect to a proposed rule for parts A, B, C, and D of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.), the Secretary shall seek public comment on the potential impact of such proposed rule on provider and payer consolidation in the aggregate.

(c)

Definitions

In this section:

(1)

Provider and payer consolidation

The term provider and payer consolidation includes the vertical or horizontal integration among providers of services (as defined in subsection (u) of section 1861 of the Social Security Act (42 U.S.C. 1395x)), suppliers (as defined in subsection (d) of such section), accountable care organizations under section 1899 of the Social Security Act (42 U.S.C. 1395jjj), Medicare Advantage organizations, PDP sponsors, pharmacy benefit managers, pharmacies, and integrated delivery systems.

(2)

Applicable payment system

The term applicable payment system includes—

(A)

with respect to outpatient hospital services, the prospective payment system for covered OPD services established under section 1833(t) of such Act (42 U.S.C. 1395(l)); and

(B)

with respect to physicians’ services, the physician fee schedules established under section 1848 of such Act (42 U.S.C. 1395w–4).

3.

Consideration of effects on provider and payer consolidation with respect to CMI models

(a)

In general

Section 1115A(b)(4)(A) of the Social Security Act (42 U.S.C. 1315a(b)(4)(A)) is amended—

(1)

in clause (i), by striking at the end and;

(2)

in clause (ii), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following new clause:

(iii)

the extent to which, and how, the model has affected and could affect provider and payer consolidation, which includes the vertical or horizontal integration among providers of services (as defined in subsection (u) of section 1861), suppliers (as defined in subsection (d) of such section), and accountable care organizations under section 1899, or pursuant to models under this section.

.

(b)

Effective date

The amendments made by subsection (a) shall apply with respect to models tested on or after January 1, 2025.

1.

Short title

This Act may be cited as the Providers and Payers COMPETE Act.

2.

Annual report on the impact of certain Medicare regulations on provider and payer consolidation; public comment on provider and payer consolidation for certain proposed rules

(a)

Annual report

Not later than December 31, 2026, and annually thereafter, the Secretary of Health and Human Services (in this section referred to as the Secretary) shall submit to Congress a report on the impact in the aggregate on provider and payer consolidation with respect to regulations and rules for parts A, B, C, and D of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.) implemented in the calendar year immediately prior to such report. Such report shall include regulations and rules that—

(1)

implement a change to an applicable payment system, a rate schedule, or another payment system under parts A, B, C, or D of such title; or

(2)

result in a significant rule effecting provider or payer consolidation.

(b)

Public comment on impact to provider and payer consolidation

Beginning for 2025, as part of any notice and comment rulemaking process that could result in a significant rule affecting provider or payer consolidation with respect to a proposed rule for parts A, B, C, and D of title XVIII of the Social Security Act (42 U.S.C. 1395c et seq.), the Secretary shall seek public comment on the potential impact of such proposed rule on provider and payer consolidation in the aggregate.

(c)

Definitions

In this section:

(1)

Provider and payer consolidation

The term provider and payer consolidation includes the vertical or horizontal integration among providers of services (as defined in subsection (u) of section 1861 of the Social Security Act (42 U.S.C. 1395x)), suppliers (as defined in subsection (d) of such section), accountable care organizations under section 1899 of the Social Security Act (42 U.S.C. 1395jjj), Medicare Advantage organizations, PDP sponsors, pharmacy benefit managers, pharmacies, and integrated delivery systems.

(2)

Applicable payment system

The term applicable payment system includes—

(A)

with respect to outpatient hospital services, the prospective payment system for covered OPD services established under section 1833(t) of such Act (42 U.S.C. 1395(l)); and

(B)

with respect to physicians’ services, the physician fee schedules established under section 1848 of such Act (42 U.S.C. 1395w–4).

3.

Consideration of effects on provider and payer consolidation with respect to CMI models

(a)

In general

Section 1115A(b)(4)(A) of the Social Security Act (42 U.S.C. 1315a(b)(4)(A)) is amended—

(1)

in clause (i), by striking at the end and;

(2)

in clause (ii), by striking the period at the end and inserting ; and; and

(3)

by adding at the end the following new clause:

(iii)

the extent to which, and how, the model has affected and could affect provider and payer consolidation, which includes the vertical or horizontal integration among providers of services (as defined in subsection (u) of section 1861), suppliers (as defined in subsection (d) of such section), and accountable care organizations under section 1899, or pursuant to models under this section.

.

(b)

Effective date

The amendments made by subsection (a) shall apply with respect to models tested on or after January 1, 2025.

December 5, 2024

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed