PUBLIC LAW 105-33 —AUG. 5, 1997 111 STAT. 337 (1) in paragraph (1), by striking "1997" and inserting "2000", and (2) in paragraph (4), by striking "1998" and inserting " 2001". (b) EXPANSION OF CAP. — Section 13567(c) of the Omnibus Budget Reconciliation Act of 1993 is amended by striking "12,000" 107 Stat. 608. and inserting "36,000". (c) REPORT ON INTEGRATION AND TRANSITION. — 42 USC (1) IN GENERAL.— The Secretary of Health and Human I395w-2l note. Services shall submit to Congress, by not later than January 1, 1999, a plan for the integration of health plans offered by social health maintenance organizations (including SHMO I and SHMO II sites developed under section 2355 of the Deficit Reduction Act of 1984 and under the amendment made by section 4207(b)(3)(B)(i) of OBRA-1990, respectively) and similar plans as an option under the Medicare+Choice program under part C of title XVIII of the Social Security Act. (2) PROVISION FOR TRANSITION.— Such plan shall include a transition for social health maintenance organizations operating under demonstration project authority under such section. (3) PAYMENT POLICY. —The report shall also include recommendations on appropriate payment levels for plans offered by such organizations, including an analysis of the application of risk adjustment factors appropriate to the population served by such organizations. Subchapter C—Medicare Subvention Demonstration Project for Military Retirees SEC. 4015. MEDICARE SUBVENTION DEMONSTRATION PROJECT FOR MILITARY RETIREES. (a) IN GENERAL.— Title XVIII (42 U.S.C. 1395 et seq.) (as amended by sections 4603 and 4801) is amended by adding at the end the following: " M ED ICARE SUBVENTION DEMONSTRATION PROJECT FOR MILITARY 42 USC 1395ggg. RETIREES " SEC. 1896. (a) DEFINITIONS. —In this section: "(1) ADMINISTERING SECRETARIES. — The term 'administering Secretaries' means the Secretary and the Secretary of Defense acting jointly. "(2) DEMONSTRATION PROJECT; PROJECT.— The terms 'demonstration project' and 'project' mean the demonstration project carried out under this section. "(3) DESIGNATED PROVIDER.— The term 'designated provider' has the meaning given that term in section 721(5) of the National Defense Authorization Act For Fiscal Year 1997 (Pub- He Law 104-201; 110 Stat. 2593; 10 U.S.C. 1073 note). "(4) MEDICARE-ELIGIBLE MILITARY RETIREE OR DEPEND- ENT. — The term 'medicare-eligible military retiree or dependent' means an individual described in section 1074(b) or 1076(b) of title 10, United States Code, who— "(A) would be eligible for health benefits under section 1086 of such title by reason of subsection (c)(1) of such section 1086 but for the operation of subsection (d) of such section 1086;
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