PUBLIC LAW 105-33—AUG. 5, 1997 111 STAT. 321 of the organization when there is reasonable evidence of some need for such inspection, and "(B) shall have the right to audit and inspect any books and records of the Medicare+Choice organization that pertain (i) to the ability of the organization to bear the risk of potential financial losses, or (ii) to services performed or determinations of amounts payable under the contract. "(3) ENROLLEE NOTICE AT TIME OF TERMINATION.— Each contract under this section shall require the organization to provide (and pay for) written notice in advance of the contract's termination, as well as a description of alternatives for obtaining benefits under this title, to each individual enrolled with the organization under this part. "(4) DISCLOSURE.— Reports. "(A) IN GENERAL. —Each Medicare+Choice organization shall, in accordance with regulations of the Secretary, report to the Secretary financial information which shall include the following: "(i) Such information as the Secretary may require demonstrating that the organization has a fiscally sound operation. "(ii) A copy of the report, if any, filed with the Health Care Financing Administration containing the information required to be reported under section 1124 by disclosing entities. "(iii) A description of transactions, as specified by the Secretary, between the organization and a party in interest. Such transactions shall include— "(I) any sale or exchange, or leasing of any property between the organization and a party in interest; "(II) any furnishing for consideration of goods, services (including management services), or facilities between the organization and a party in interest, but not including salaries paid to employ- ees for services provided in the normal course of their employment and health services provided to members by hospitals and other providers and by staff, medical group (or groups), individual practice association (or associations), or any combination thereof; and "(III) any lending of money or other extension of credit between an organization and a party in interest. The Secretary may require that information reported respecting an organization which controls, is controlled by, or is under common control with, another entity be in the form of a consolidated financial statement for the organization and such entity. " (B) PARTY IN INTEREST DEFINED. —For the purposes of this paragraph, the term 'party in interest' means— "(i) any director, officer, partner, or employee responsible for management or administration of a Medicare+Choice organization, any person who is directly or indirectly the beneficial owner of more than 5 percent of the equity of the organization, any person
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