PUBLIC LAW 106-554—APPENDIX F 114 STAT. 2763A-477 iKf (A) Two projects for each of the four following major racial and ethnic minority groups: (i) American Indians, including Alaska Natives, Eskimos, and Aleuts. (ii) Asian Americans and Pacific Islanders, (iii) Blacks. (iv) Hispanics. The two projects must target different ethnic subpopulations. (B) One project within the Pacific Islands. (C) At least one project each in a rural area and inner-city area. (3) EXPANSION OF PROJECTS; IMPLEMENTATION OF DEM- ONSTRATION PROJECT RESULTS. —I f the initial report under subsection (c) contains an evaluation that demonstration projects— (A) reduce expenditures under the medicare program under title XVIII of the Social Security Act; or (B) do not increase expenditures under the medicare program and reduce racial and ethnic health disparities in the quality of health care services provided to target individuals and increase satisfaction of beneficiaries and health care providers; the Secretary shall continue the existing demonstration projects and may expand the number of demonstration projects. (c) REPORT TO CONGRESS. — (1) IN GENERAL. — Not later than 2 years after the date the Secretary implements the initial demonstration projects, and biannually thereafter, the Secretary shall submit to Congress a report regarding the demonstration projects. (2) CONTENTS OF REPORT.— Each report under paragraph (1) shall include the following: (A) A description of the demonstration projects. (B) An evaluation of— (i) the cost-effectiveness of the demonstration projects; (ii) the quality of the health care services provided to target individuals under the demonstration projects; and (iii) beneficiary and health care provider satisfaction under the demonstration projects. (C) Any other information regarding the demonstration projects that the Secretary determines to be appropriate. (d) WAIVER AUTHORITY.— The Secretary shall waive compliance with the requirements of title XVIII of the Social Security Act to such extent and for such period as the Secretary determines is necessary to conduct demonstration projects. (e) FUNDING. — (1) DEMONSTRATION PROJECTS.— (A) STATE PROJECTS.—Except as provided in subparagraph (B), the Secretary shall provide for the transfer from the Federal Hospital Insurance Trust Fund and the Federal Supplementary Insurance Trust Fund under title XVIII of the Social Security Act, in such proportions as the Secretary determines to be appropriate, of such funds as are necessary for the costs of carrying out the demonstration projects.