124 STAT. 196 PUBLIC LAW 111–148—MAR. 23, 2010 be a for-profit entity by the Secretary, such entity shall be— (i) immediately liable to the Secretary for any pay- ments received by such entity from the Start-Up Fund; and (ii) permanently ineligible to offer a qualified health plan. (d) STATE ADVISORY COUNCIL.— (1) ESTABLISHMENT.—A State (other than a State that elects to opt out as provided for in subsection (a)(3)) shall establish or designate a public or non-profit private entity to serve as the State Advisory Council to provide recommenda- tions to the Secretary on the operations and policies of a community health insurance option in the State. Such Council shall provide recommendations on at least the following: (A) policies and procedures to integrate quality improvement and cost containment mechanisms into the health care delivery system; (B) mechanisms to facilitate public awareness of the availability of a community health insurance option; and (C) alternative payment structures under a community health insurance option for health care providers that encourage quality improvement and cost control. (2) MEMBERS.—The members of the State Advisory Council shall be representatives of the public and shall include health care consumers and providers. (3) APPLICABILITY OF RECOMMENDATIONS.—The Secretary may apply the recommendations of a State Advisory Council to a community health insurance option in that State, in any other State, or in all States. (e) AUTHORITY TO CONTRACT; TERMS OF CONTRACT.— (1) AUTHORITY.— (A) IN GENERAL.—The Secretary may enter into a con- tract or contracts with one or more qualified entities for the purpose of performing administrative functions (including functions described in subsection (a)(4) of section 1874A of the Social Security Act) with respect to a commu- nity health insurance option in the same manner as the Secretary may enter into contracts under subsection (a)(1) of such section. The Secretary shall have the same authority with respect to a community health insurance option under this section as the Secretary has under sub- sections (a)(1) and (b) of section 1874A of the Social Security Act with respect to title XVIII of such Act. (B) REQUIREMENTS APPLY.—If the Secretary enters into a contract with a qualified entity to offer a community health insurance option, under such contract such entity— (i) shall meet the criteria established under para- graph (2); and (ii) shall receive an administrative fee under para- graph (7). (C) LIMITATION.—Contracts under this subsection shall not involve the transfer of insurance risk to the contracting administrator. (D) REFERENCE.—An entity with which the Secretary has entered into a contract under this paragraph shall be referred to as a ‘‘contracting administrator’’. Fee.
