To amend title XVII of the Public Health Service Act to authorize the Secretary of Health and Human Services to make grants to establish and develop telemedicine projects for rural areas, to establish a health care data interchange system, and for other purposes.

TABLE OF CONTENTS: Title I: Promotion Telemedicine Projects for Rural Areas Title II: Health Care Data Interchange System Title I: Promotion of Telemedicine Projects for Rural Areas - Amends the Public Health Service Act to authorize the Secretary of Health and Human Services to make grants to: (1) rural health care providers and networks to establish and initially develop and operate telemedicine projects that use telecommunications and other technologies to increase the quality and accessibility of and reduce the costs of, health care in rural areas; and (2) applicant groups consisting of two or more rural health care networks to electronically link existing telemedicine projects established by such networks and to develop such projects. Provides that at least 40 percent of the grants made by the Secretary to rural health care providers or networks shall be made to those with ten or fewer members. Requires the Secretary to: (1) review at least annually the compliance of grant recipients with this Act; (2) establish a procedure for determining whether a person has failed to comply substantially; and (3) establish sanctions for noncompliance. Authorizes appropriations. Title II: Health Care Data Interchange System - Establishes a health care data interchange system that meets specified requirements to make health care data available on a uniform basis to all participants in the health care system. (Sec. 202) Requires: (1) the Health Care Data Panel (Panel) to be established by this Act to develop proposed regulations for the implementation and ongoing operation of an integrated electronic health care data interchange system that are based on the operating standards for the system that are to be established, selected, or developed by the Panel; and (2) the Office of Management and Budget (OMB) to promulgate regulations based on such proposed regulations. (Sec. 204) Requires the Panel to: (1) establish standards for the development and operation of a national uniform working file system; (2) establish code sets that are maintained by private and public entities as the Panel's official code sets; (3) develop unique identifiers for each participant in the health care system; (4) develop requirements that protect the privacy of participants and confidentiality of data; (5) develop rules for determining the financial liability of health plans when health care benefits are payable under two or more health plans and concerning the transfer among plans of appropriate data sets needed to carry out the coordination of benefits, the sequential processing of claims, and other health data for individuals who have more than one health plan; (6) develop civil fines and penalties for violation of the Panel's requirements, with exceptions; and (7) submit to the Congress a legislative proposal relating to any criminal fines and penalties to enforce privacy and confidentiality requirements. (Sec. 211) Requires the Secretary to establish a procedure for the periodic review of business practices, performance, and fees with respect to the uniform working file and each health care information clearinghouse and value-added network to ensure that such entities are not taking unfair advantage of participants in the health care system through the application of any regulations promulgated by OMB. Requires the Panel to establish a certification procedure for the uniform working file, health care information clearinghouses, and value-added networks. (Sec. 212) Requires the Panel to annually prepare and report to the Congress on: (1) the status of the data interchange system, including the system's ability to provide data on cost, quality, and patient satisfaction; (2) the savings and costs of implementing the data interchange system; and (3) any legislative recommmendations related to the data interchange system. Makes such information available to the public unless such disclosure is prohibited by law. (Sec. 214) Establishes the National Health Informatics Commission to be appointed by the Panel to advise on its activities. Authorizes appropriations.