123STA T .96PUBLIC LA W 111 – 3 —FE B. 4, 2 0 09 TI T LEV I —PROG R AM I N TEGRIT Y AN D OT H ER MI SC ELLANEO U S PROVISIONS S ubti t le A—P rog r am I n tegrit y an d Data Colle c tion SEC.601 . PAYM E NT E R R O R RATE MEAS U REMENT (‘ ‘PERM ’ ’ ) . (a)EXPENDITUR E SR E LA TED T OC O M PLIAN C E W IT H RE Q UIRE - MENTS .— ( 1 ) ENHANCED PA Y MENTS.— Section2 1 05 (c) ( 4 2 U .S.C. 1 397 ee(c)) , a s a m en d ed by section 301(a), is amended by addin g att h e end the f o l lo w ing new p a r agraph
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‘(11) ENHANCED PAYMENTS.— N otwithstanding s u bsection (b), the enhanced FMAP with respect to payments under sub- section (a) for e x penditures related to the administration of the payment error rate measurement (PERM) re q uirements applicable to the State child health plan in accordance with the I mproper Payments Information Act of 2002 and parts 431 and 457 of title 42, Code of Federal Regulations (or any related or successor guidance or regulations) shall in no e v ent be less than 90 percent. ’ ’. (2) EXCLUSION O F FROM CAP ON ADMINISTRATI V E EXPENDI- TURES.—Section 2105(c)(2)(C) (42 U.S.C. 1397ee(c)(2)C)), as amended by section 302(b)), is amended by adding at the end the following: ‘‘(iv) PAYMENT ERROR RATE MEASUREMENT ( PERM ) EXPENDITURES.—Expenditures related to the adminis- tration of the payment error rate measurement (PERM) requirements applicable to the State child health plan in accordance with the Improper Payments Information Act of 2002 and parts 431 and 457 of title 42, Code of Federal Regulations (or any related or successor guidance or regulations).’’. (b) FINAL RULE REQUIRED T O B EINEFFECT FOR ALL STATES.— Notwithstanding parts 431 and 457 of title 42, Code of Federal Regulations (as in effect on the date of enactment of this Act), the Secretary shall not calculate or publish any national or State- specific error rate based on the application of the payment error rate measurement (in this section referred to as ‘‘PERM’’) require- ments to C H IP until after the date that is 6 months after the date on which a new final rule (in this section referred to as the ‘‘new final rule’’) promulgated after the date of the enactment of this Act and implementing such requirements in accordance with the requirements of subsection (c) is in effect for all States. Any calculation of a national error rate or a State specific error rate after such new final rule in effect for all States may only be inclusive of errors, as defined in such new final rule or in guidance issued within a reasonable time frame after the effective date for such new final rule that includes detailed guidance for the specific methodology for error determinations. (c) REQUIREMENTS FOR NE W FINAL RULE.—For purposes of subsection (b), the requirements of this subsection are that the new final rule implementing the PERM requirements shall— (1) include— 42USC1397e e not e .
