I 

108TH CONGRESS 

1ST SESSION H. R. 1710

To amend title XVIII of the Social Security Act to restore the full market 

basket percentage increase applied to payments to hospitals for inpatient 

hospital services furnished to Medicare beneficiaries, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 10, 2003

Mr. FOLEY (for himself and Mr. NEAL of Massachusetts) introduced the following bill; which was referred to the Committee on Ways and Means, 

and in addition to the Committee on Energy and Commerce, for a period 

to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee 

concerned 

A BILL

To amend title XVIII of the Social Security Act to restore 

the full market basket percentage increase applied to 

payments to hospitals for inpatient hospital services furnished to Medicare beneficiaries, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘American Hospital 

5 Preservation Act of 2003’’. 
2

•HR 1710 IH 

1 SEC. 2. RESTORING FULL MARKET BASKET UPDATE FOR 

2 INPATIENT PPS HOSPITALS. 

3 (a) IN GENERAL.—Section 1886(b)(3)(B)(i) of the 

4 Social Security Act (42 U.S.C. 1395ww(b)(3)(B)(i)) is 

5 amended—

6 (1) in subclause (XVIII), by striking ‘‘and’’ at 

7 the end; and 

8 (2) by striking subclause (XIX) and inserting the fol9 lowing new subclauses: 

10 ‘‘(XIX) for fiscal year 2004, the market basket 

11 percentage increase plus 0.55 percentage points for 

12 hospitals in all areas; and 

13 ‘‘(XX) for fiscal year 2005 and each subsequent 

14 fiscal year, the market basket percentage increase 

15 for hospitals in all areas.’’. 

16 (b) PROTECTING FULL MARKET BASKET UPDATE

17 FOR FISCAL YEARS 2004 AND THEREAFTER.—Such sec18 tion, as amended by subsection (a), is further amended 

19 by inserting after subclause (XX) the following: 

20 ‘‘Notwithstanding any other provision of law, the ‘applica21 ble percentage increase’ for any fiscal year after fiscal year 

22 2005 may not be a percentage that is less than the market 

23 basket percentage increase for such year.’’. 
3

•HR 1710 IH 

1 SEC. 2. FREEZING INDIRECT MEDICAL EDUCATION (IME) 

2 ADJUSTMENT PERCENTAGE AT 6.5 PERCENT. 

3 (a) IN GENERAL.—Section 1886(d)(5)(B)(ii) of the 

4 Social Security Act (42 U.S.C. 1395ww(d)(5)(B)(ii)) is 

5 amended—

6 (1) in subclause (VI), by striking ‘‘and’’ at the 

7 end; and 

8 (2) by striking subclause (VII) and inserting 

9 the following new subclauses: 

10 ‘‘(VII) during fiscal year 2003, ‘‘c’’ is 

11 equal to 1.35. 

12 ‘‘(VIII) during fiscal year 2004, ‘‘c’’ is 

13 equal to 1.85; and 

14 ‘‘(IX) on or after October 1, 2004, ‘c’ is 

15 equal to 1.6.’’. 

16 (b) CONFORMING AMENDMENT RELATING TO DE17 TERMINATION OF STANDARDIZED AMOUNT.—Section 

18 1886(d)(2)(C)(i) of such Act (42 U.S.C. 

19 1395ww(d)(2)(C)(i)) is amended—

20 (1) by striking ‘‘1999 or’’ and inserting 

21 ‘‘1999,’’; and 

22 (2) by inserting ‘‘, or the American Hospital 

23 Preservation Act of 2003’’ after ‘‘2000’’.

Æ