SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicaid Accountability through 
Transparency Act of 2009''.

SEC. 2. MEDICAID INTERNET-BASED TRANSPARENCY PROGRAM.

    (a) In General.--Title XIX of the Social Security Act, as amended 
by section 203(d) of the Children's Health Insurance Program 
Reauthorization Act of 2009 (Public Law 111-3), is amended by adding at 
the end the following new section:

``SEC. 1943. INTERNET-BASED TRANSPARENCY PROGRAM.

    ``(a) In General.--Not later than one year after the date of the 
enactment of this section, the Secretary shall implement a program 
under which the Secretary shall make available through the public 
Internet website of the Department of Health and Human Services non-
aggregated information on individuals collected under the Medicaid 
Statistical Information System described in section 1903(r)(1)(F) 
insofar as such information has been de-identified in accordance with 
regulations promulgated pursuant to section 264(c) of the Health 
Insurance Portability and Accountability Act of 1996. In implementing 
such program, the Secretary shall ensure that--
            ``(1) the information made so available is in a format that 
        is easily accessible, useable, and understandable to the 
        public, including individuals interested in improving the 
        quality of care provided to individuals eligible for items and 
        services under this title, researchers, health care providers, 
        and individuals interested in reducing the prevalence of waste 
        and fraud under this title;
            ``(2) the information made so available is as current as 
        deemed practical by the Secretary and shall be updated at least 
        once per calendar quarter;
            ``(3) to the extent feasible--
                    ``(A) all hospitals, nursing homes, clinics, and 
                large physician practices included in such information 
                that are identifiable by name to individuals who access 
                the information through such program; and
                    ``(B) all individual health care providers not 
                described in subparagraph (A), including physicians and 
                dentists, are identifiable by unique identifier numbers 
                that are disclosed only to appropriate officials within 
                the Department of Health and Human Services and the 
                State involved; and
            ``(4) the Secretary periodically solicits comments from a 
        sampling of individuals who access the information through such 
        program on how to best improve the utility of the program.
    ``(b) Use of Contractor.--For purposes of implementing the program 
under subsection (a) and ensuring the information made available 
through such program is periodically updated, the Secretary may select 
and enter into a contract with a public or private entity meeting such 
criteria and qualifications as the Secretary determines appropriate.
    ``(c) Annual Reports.--Not later than 2 years after the date of the 
enactment of this section and annually thereafter, the Secretary shall 
submit to the Committee on Energy and Commerce of the House of 
Representatives and the Committee on Finance of the Senate a report on 
the progress of the program under subsection (a), including on the 
extent to which information made available through the program is 
accessed and the extent to which comments received under subsection 
(a)(4) were used during the year involved to improve the utility of the 
program.
    ``(d) Incentives for Compliance With Existing State Requirements.--
If the Secretary determines that one of the 50 States or the District 
of Columbia has not fully and properly complied with section 
1903(r)(1)(F), including any encounter data requirements, for any 
period beginning after the date that is one year after the date of the 
enactment of this section, the Secretary shall reduce the amount paid 
to the State or the District of Columbia, respectively, under section 
1903(a) by $25,000 for each such day. Such reduction shall be made 
unless--
            ``(1) the State or the District of Columbia, respectively, 
        demonstrates to the Secretary's satisfaction that the State 
        made a good faith effort to comply;
            ``(2) not later than 60 days after the date of a finding 
        that the State or the District of Columbia, respectively, has 
        not fully and properly complied with section 1903(r)(1)(F), the 
        State or the District of Columbia, respectively, submits to the 
        Secretary (and the Secretary approves) a corrective action plan 
        to implement such a program; and
            ``(3) not later than 12 months after the date of such 
        submission (and approval), the State or the District of 
        Columbia, respectively, fulfills the terms of such corrective 
        action plan.
The Secretary shall transfer the amount of any reduction under this 
subsection to the fund established under subsection (e).
    ``(e) Funding.--
            ``(1) Medicaid internet-based transparency fund.--The 
        Secretary shall establish a fund to be known as the `Medicaid 
        Internet-based Transparency Fund', consisting of such amounts 
        as may be transferred to such Fund under subsection (d) and 
        such amounts as may be appropriated to such Fund under 
        paragraph (3).
            ``(2) Expenditures from fund.--Amounts in the Medicaid 
        Internet-based Transparency Fund shall be available to the 
        Secretary only for purposes of carrying out this section.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to the Medicaid Internet-based Transparency 
        Fund $10,000,000 for fiscal year 2009, to remain available 
        until expended.''.
    (b) Feasibility Report on Including SCHIP Information in Internet-
Based Transparency Program.--Not later than 2 years after the date of 
the enactment of this Act, the Secretary of Health and Human Services 
shall submit to the Committee on Energy and Commerce of the House of 
Representative and the Committee on Finance of the Senate a report on 
the feasibility, potential costs, and potential benefits of making 
publicly available through an Internet-based program de-identified 
payment and patient encounter information for items and services 
furnished under title XXI of the Social Security Act which would not 
otherwise be included in the information collected under the Medicaid 
Statistical Information System described in section 1903(r)(1)(F) of 
such Act and made available under section 1943 of such Act, as added by 
subsection (a).
Medicaid Accountability through Transparency Act of 2009 - Amends title XIX (Medicaid) of the Social Security Act, as amended by the Children's Health Insurance Program Reauthorization Act of 2009, to direct the Secretary of Health and Human Services to implement a program under which the Secretary shall make available through the public Internet website of the Department of Health and Human Services non-aggregated, de-identified information on individuals collected under the Medicaid Statistical Information System (MSIS).

Requires reduction of Medicaid payments to states which have not provided for electronic transmission of claims data in the format specified by the Secretary and consistent with the MSIS (including detailed individual enrollee encounter data and other information that the Secretary may find necessary).

Directs the Secretary to report to specified congressional committees on the feasibility, potential costs, and potential benefits of making publicly available through an Internet-based program de-identified payment and patient encounter information for items and services furnished under title XXI (Children's Health Insurance Program) (CHIP, formerly known as SCHIP) of the Social Security Act which would not otherwise be included in the information collected under the MSIS.
A bill to amend title XIX of the Social Security Act to require the Secretary of Health and Human Services to make certain de-identified information collected under the Medicaid Statistical Information System publicly available on the Internet.