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H.R.3426
Medicare, Medicaid, and SCHIP Balanced Budget Refinement Act of 1999
(Introduced in the House)
SEC. 228. TEMPORARY INCREASE IN PAYMENT RATES FOR DURABLE MEDICAL EQUIPMENT AND OXYGEN.
(a) IN GENERAL- For purposes of payments under section 1834(a) of the
Social Security Act (42 U.S.C. 1395m(a)) for covered items (as defined in
paragraph (13) of that section) furnished during 2001 and 2002, the Secretary
of Health and Human Services shall increase the payment amount in effect (but
for this section) for such items for--
(1) 2001 by 0.3 percent, and
(b) LIMITING APPLICATION TO SPECIFIED YEARS- The payment amount
increase--
(1) under subsection (a)(1) shall not apply after 2001 and shall not be
taken into account in calculating the payment amounts applicable for covered
items furnished after such year; and
(2) under subsection (a)(2) shall not apply after 2002 and shall not be
taken into account in calculating the payment amounts applicable for covered
items furnished after such year.
SEC. 229. STUDIES AND REPORTS.
(a) MEDPAC STUDY ON POSTSURGICAL RECOVERY CARE CENTER SERVICES-
(1) IN GENERAL- The Medicare Payment Advisory Commission
shall conduct a study on the cost-effectiveness and efficacy of covering
under the medicare program
under title XVIII of the Social Security Act services of a post-surgical
recovery care center (that provides an intermediate level of recovery care
following surgery). In conducting such study, the Commission shall consider
data on these centers gathered in demonstration projects.
(2) REPORT- Not later than 1 year after the date of the enactment of
this Act, the Commission shall submit to Congress a report on such study and
shall include in the report recommendations on the feasibility, costs, and
savings of covering such services under the medicare program.
(b) AHCPR STUDY ON EFFECT OF CREDENTIALING OF TECHNOLOGISTS AND
SONOGRAPHERS ON QUALITY OF ULTRASOUND-
(1) STUDY- The Administrator for Health Care Policy and Research shall
provide for a study that, with respect to the provision of ultrasound under
the medicare and medicaid
programs under titles XVIII and XIX of the Social Security Act, compares
differences in quality between ultrasound furnished by individuals who are
credentialed by private entities or organizations and ultrasound furnished
by those who are not so credentialed. Such study shall examine and evaluate
differences in error rates, resulting complications, and patient outcomes as
a result of the differences in credentialing. In designing the study, the
Administrator shall consult with organizations nationally recognized for
their expertise in ultrasound.
(2) REPORT- Not later than two years after the date of the enactment of
this Act, the Administrator shall submit a report to Congress on the study
conducted under paragraph (1).
(c) MEDPAC STUDY ON THE COMPLEXITY OF THE MEDICARE PROGRAM AND THE LEVELS OF
BURDENS PLACED ON PROVIDERS THROUGH FEDERAL REGULATIONS-
(1) STUDY- The Medicare
Payment Advisory Commission shall undertake a comprehensive study to review
the regulatory burdens placed on all classes of health care providers under
parts A and B of the medicare
program under title XVIII of the Social Security Act and to determine the
costs these burdens impose on the nation's health care system. The study
shall also examine the complexity of the current regulatory system and its
impact on providers.
(2) REPORT- Not later than December 31, 2001, the Commission shall
submit to Congress one or more reports on the study conducted under
paragraph (1). The report shall include recommendations regarding--
(A) how the Health Care Financing Administration can reduce the
regulatory burdens placed on patients and providers; and
(B) legislation that may be appropriate to reduce the complexity of
the medicare program,
including improvement of the rules regarding billing, compliance, and
fraud and abuse.
(d) GAO CONTINUED MONITORING OF DEPARTMENT OF JUSTICE APPLICATION OF
GUIDELINES ON USE OF FALSE CLAIMS ACT IN CIVIL HEALTH CARE MATTERS- The
Comptroller General of the United States shall--
(1) continue the monitoring, begun under section 118 of the Department
of Justice Appropriations Act, 1999 (included in Public Law 105-277) of the
compliance of the Department of Justice and all United States Attorneys with
the `Guidance on the Use of the False Claims Act in Civil Health Care
Matters' issued by the Department of Justice on June 3, 1998, including any
revisions to that guidance; and
(2) not later than April 1, 2000, and of each of the two succeeding
years, submit a report on such compliance to the appropriate Committees of
Congress.
TITLE III--PROVISIONS RELATING TO PARTS A AND B
Subtitle A--Home Health Services
SEC. 301. ADJUSTMENT TO REFLECT ADMINISTRATIVE COSTS NOT INCLUDED IN THE
INTERIM PAYMENT SYSTEM; GAO REPORT ON COSTS OF COMPLIANCE WITH OASIS DATA
COLLECTION REQUIREMENTS.
(a) ADJUSTMENT TO REFLECT ADMINISTRATIVE COSTS-
(1) IN GENERAL- In the case of a home health agency that furnishes home
health services to a medicare
beneficiary, for each such beneficiary to whom the agency furnished such
services during the agency's cost reporting period beginning in fiscal year
2000, the Secretary of Health and Human Services shall pay the agency, in
addition to any amount of payment made under section 1861(v)(1)(L) of the
Social Security Act (42 U.S.C. 1395x(v)(1)(L)) for the beneficiary and only
for such cost reporting period, an aggregate amount of $10 to defray costs
incurred by the agency attributable to data collection and reporting
requirements under the Outcome and Assessment Information Set (OASIS)
required by reason of section 4602(e) of BBA (42 U.S.C. 1395fff note).
(A) MIDYEAR PAYMENT- Not later than April 1, 2000, the Secretary shall
pay to a home health agency an amount that the Secretary estimates to be
50 percent of the aggregate amount payable to the agency by reason of this
subsection.
(B) UPON SETTLED COST REPORT- The Secretary shall pay the balance of
amounts payable to an agency under this subsection on the date that the
cost report submitted by the agency for the cost reporting period
beginning in fiscal year 2000 is settled.
(3) PAYMENT FROM TRUST FUNDS- Payments under this subsection shall be
made, in appropriate part as specified by the Secretary, from the Federal
Hospital Insurance Trust Fund and from the Federal Supplementary Medical Insurance Trust Fund.
(4) DEFINITIONS- In this subsection:
(A) HOME HEALTH AGENCY- The term `home health agency' has the meaning
given that term under section 1861(o) of the Social Security Act (42
U.S.C. 1395x(o)).
(B) HOME HEALTH SERVICES- The term `home health services' has the
meaning given that term under section 1861(m) of such Act (42 U.S.C.
1395x(m)).
(C) MEDICARE
BENEFICIARY- The term `medicare beneficiary' means a
beneficiary described in section 1861(v)(1)(L)(vi)(II) of the Social
Security Act (42 U.S.C. 1395x(v)(1)(L)(vi)(II)).
(b) GAO REPORT ON COSTS OF COMPLIANCE WITH OASIS DATA COLLECTION
REQUIREMENTS-
(A) IN GENERAL- Not later than 180 days after the date of the
enactment of this Act, the Comptroller General of the United States shall
submit to Congress a report on the matters described in subparagraph (B)
with respect to the data collection requirement of patients of such
agencies under the Outcome and Assessment Information Set (OASIS) standard
as part of the comprehensive assessment of patients.
(B) MATTERS STUDIED- For purposes of subparagraph (A), the matters
described in this subparagraph include the following:
(i) An assessment of the costs incurred by medicare home health agencies in
complying with such data collection requirement.
(ii) An analysis of the effect of such data collection requirement
on the privacy interests of patients from whom data is
collected.
(C) AUDIT- The Comptroller General shall conduct an independent audit
of the costs described in subparagraph (B)(i). Not later than 180 days
after receipt of the report under subparagraph (A), the Comptroller
General shall submit to Congress a report describing the Comptroller
General's findings with respect to such audit, and shall include comments
on the report submitted to Congress by the Secretary of Health and Human
Services under subparagraph (A).
(2) DEFINITIONS- In this subsection:
(A) COMPREHENSIVE ASSESSMENT OF PATIENTS- The term `comprehensive
assessment of patients' means the rule published by the Health Care
Financing Administration that requires, as a condition of participation in
the medicare program, a home
health agency to provide a patient-specific comprehensive assessment that
accurately reflects the patient's current status and that incorporates the
Outcome and Assessment Information Set (OASIS).
(B) OUTCOME AND ASSESSMENT INFORMATION SET- The term `Outcome and
Assessment Information Set' means the standard provided under the rule
relating to data items that must be used in conducting a comprehensive
assessment of patients.
SEC. 302. DELAY IN APPLICATION OF 15 PERCENT REDUCTION IN PAYMENT RATES FOR
HOME HEALTH SERVICES UNTIL ONE YEAR AFTER IMPLEMENTATION OF PROSPECTIVE PAYMENT
SYSTEM.
(a) CONTINGENCY REDUCTION- Section 4603 of BBA (42 U.S.C. 1395fff note)
(as amended by section 5101(c)(3) of the Tax and Trade Relief Extension Act of
1998 (contained in division J of Public Law 105-277)) is amended by striking
subsection (e).
(b) PROSPECTIVE PAYMENT SYSTEM- Section 1895(b)(3)(A)(i) (42 U.S.C.
1395fff(b)(3)(A)(i)) (as amended by section 5101 of the Tax and Trade Relief
Extension Act of 1998 (contained in division J of Public Law 105-277)) is
amended to read as follows:
`(i) IN GENERAL- Under such system the Secretary shall provide for
computation of a standard prospective payment amount (or amounts) as
follows:
`(I) Such amount (or amounts) shall initially be based on the most
current audited cost report data available to the Secretary and shall
be computed in a manner so that the total amounts payable under the
system for the 12-month period beginning on the date the Secretary
implements the system shall be equal to the total amount that would
have been made if the system had not been in effect.
`(II) For periods beginning after the period described in
subclause (I), such amount (or amounts) shall be equal to the amount
(or amounts) that would have been determined under subclause (I) that
would have been made for fiscal year 2001 if the system had not been
in effect but if the reduction in limits described in clause (ii) had
been in effect, updated under subparagraph (B).
Each such amount shall be standardized in a manner that eliminates
the effect of variations in relative case mix and area wage adjustments
among different home health agencies in a budget neutral manner
consistent with the case mix and wage level adjustments provided under
paragraph (4)(A). Under the system, the Secretary may recognize regional
differences or differences based upon whether or not the services or
agency are in an urbanized area.'.
(c) REPORT- Not later than the date that is six months after the date the
Secretary of Health and Human Services implements the prospective payment
system for home health services under section 1895 of the Social Security Act
(42 U.S.C. 1395fff), the Secretary shall submit to Congress a report analyzing
the need for the 15 percent reduction under subsection (b)(3)(A)(ii) of such
section, or for any reduction, in the computation of the base payment amounts
under the prospective payment system for home health services established
under such section.
SEC. 303. INCREASE IN PER BENEFICIARY LIMITS.
(a) INCREASE IN PER BENEFICIARY LIMITS- Section 1861(v)(1)(L) of the
Social Security Act (42 U.S.C. 1395x(v)(1)(L)), as amended by section 5101 of
the Tax and Trade Relief Extension Act of 1998 (contained in Division J of
Public Law 105-277), is amended--
(1) by redesignating clause (ix) as clause (x); and
(2) by inserting after clause (viii) the following new clause:
`(ix) Notwithstanding the per beneficiary limit under clause (viii), if
the limit imposed under clause (v) (determined without regard to this clause)
for a cost reporting period beginning during or after fiscal year 2000 is less
than the median described in clause (vi)(I) (but determined as if any
reference in clause (v) to `98 percent' were a reference to `100 percent'),
the limit otherwise imposed under clause (v) for such provider and period
shall be increased by 2 percent.'.
(b) INCREASE NOT INCLUDED IN PPS BASE- The second sentence of section
1895(b)(3)(A)(i) (42 U.S.C. 1395fff(b)(3)(A)(i)), as amended by section
302(b), is further amended--
(1) in subclause (I), by inserting `and if section 1861(v)(1)(L)(ix) had
not been enacted' before the semicolon; and
(2) in subclause (II), by inserting `and if section 1861(v)(1)(L)(ix)
had not been enacted' after `if the system had not been in effect'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
services furnished by home health agencies for cost reporting periods
beginning on or after October 1, 1999.
SEC. 304. CLARIFICATION OF SURETY BOND REQUIREMENTS.
(a) HOME HEALTH AGENCIES- Section 1861(o)(7) (42 U.S.C. 1395x(o)(7)) is
amended to read as follows:
`(7) provides the Secretary with a surety bond--
`(A) effective for a period of 4 years (as specified by the Secretary)
or in the case of a change in the ownership or control of the agency (as
determined by the Secretary) during or after such 4-year period, an
additional period of time that the Secretary determines appropriate, such
additional period not to exceed 4 years from the date of such change in
ownership or control;
`(B) in a form specified by the Secretary; and
`(C) for a year in the period described in subparagraph (A) in an
amount that is equal to the lesser of $50,000 or 10 percent of the
aggregate amount of payments to the agency under this title and title XIX
for that year, as estimated by the Secretary; and'.
(b) COORDINATION OF SURETY BONDS- Part A of title XI of the Social
Security Act is amended by inserting after section 1128E the following new
section:
`COORDINATION OF MEDICARE AND
MEDICAID SURETY BOND PROVISIONS
`SEC. 1128F. In the case of a home health agency that is subject to a
surety bond requirement under title XVIII and title XIX, the surety bond
provided to satisfy the requirement under one such title shall satisfy the
requirement under the other such title so long as the bond applies to
guarantee return of overpayments under both such titles.'.
(c) EFFECTIVE DATE- The amendments made by this section take effect on the
date of the enactment of this Act, and in applying section 1861(o)(7) of the
Social Security Act (42 U.S.C. 1395x(o)(7)), as amended by subsection (a), the
Secretary of Health and Human Services may take into account the previous
period for which a home health agency had a surety bond in effect under such
section before such date.
SEC. 305. REFINEMENT OF HOME HEALTH AGENCY CONSOLIDATED BILLING.
(a) IN GENERAL- Section 1842(b)(6)(F) (42 U.S.C. 1395u(b)(6)(F)) is
amended by inserting `(including medical supplies described in section
1861(m)(5), but excluding durable medical equipment to the extent provided for
in such section)' after `home health services'.
(b) CONFORMING AMENDMENT- Section 1862(a)(21) (42 U.S.C. 1395y(a)(21)) is
amended by inserting `(including medical supplies described in section
1861(m)(5), but excluding durable medical equipment to the extent provided for
in such section)' after `home health services'.
(c) EFFECTIVE DATE- The amendments made by this section shall apply to
payments for services provided on or after the date of enactment of this
Act.
SEC. 306. TECHNICAL AMENDMENT CLARIFYING APPLICABLE MARKET BASKET INCREASE
FOR PPS.
Section 1895(b)(3)(B)(ii)(I) (42 U.S.C. 1395fff(b)(3)(B)(ii)(I)) is
amended by striking `fiscal year 2002 or 2003' and inserting `each of fiscal
years 2002 and 2003'.
SEC. 307. STUDY AND REPORT TO CONGRESS REGARDING THE EXEMPTION OF RURAL
AGENCIES AND POPULATIONS FROM INCLUSION IN THE HOME HEALTH PROSPECTIVE PAYMENT
SYSTEM.
(a) STUDY- The Medicare
Payment Advisory Commission (referred to in this section as `MedPAC') shall
conduct a study to determine the feasibility and advisability of exempting
home health services provided by a home health agency (or by others under
arrangements with such agency) located in a rural area, or to an individual
residing in a rural area, from payment under the prospective payment system
for such services established by the Secretary of Health and Human Services in
accordance with section 1895 of the Social Security Act (42 U.S.C.
1395fff).
(b) REPORT- Not later than 2 years after the date of the enactment of this
Act, MedPAC shall submit a report to Congress on the study conducted under
subsection (a), together with any recommendations for legislation that MedPAC
determines to be appropriate as a result of such study.
Subtitle B--Direct Graduate Medical Education
SEC. 311. USE OF NATIONAL
AVERAGE PAYMENT METHODOLOGY IN COMPUTING DIRECT GRADUATE MEDICAL EDUCATION (DGME) PAYMENTS.
(a) IN GENERAL- Section 1886(h)(2) (42 U.S.C. 1395ww(h)(2)) is
amended--
(1) in subparagraph (D)(i), by striking `clause (ii)' and inserting `a
subsequent clause';
(2) by adding at the end of subparagraph (D) the following new
clauses:
`(iii) FLOOR IN FISCAL YEAR 2001 AT 70 PERCENT OF LOCALITY ADJUSTED
NATIONAL AVERAGE PER
RESIDENT AMOUNT- The approved FTE resident amount for a hospital for the
cost reporting period beginning during fiscal year 2001 shall not be
less than 70 percent of the locality adjusted national average per resident
amount computed under subparagraph (E) for the hospital and
period.
`(iv) ADJUSTMENT IN RATE OF INCREASE FOR HOSPITALS WITH FTE APPROVED
AMOUNT ABOVE 140 PERCENT OF LOCALITY ADJUSTED NATIONAL AVERAGE PER RESIDENT
AMOUNT-
`(I) FREEZE FOR FISCAL YEARS 2001 AND 2002- For a cost reporting
period beginning during fiscal year 2001 or fiscal year 2002, if the
approved FTE resident amount for a hospital for the preceding cost
reporting period exceeds 140 percent of the locality adjusted national average per resident
amount computed under subparagraph (E) for that hospital and period,
subject to subclause (III), the approved FTE resident amount for the
period involved shall be the same as the approved FTE resident amount
for the hospital for such preceding cost reporting
period.
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