I 

108TH CONGRESS 

1ST SESSION H. R. 2246

To direct the Secretary of Health and Human Services to modify treatment 

categories for qualification as a rehabilitation hospital or unit for purposes of reimbursement under the Medicare prospective payment system 

for inpatient rehabilitation facilities. 

IN THE HOUSE OF REPRESENTATIVES 

MAY 22, 2003

Mr. LOBIONDO (for himself, Mr. FROST, Mr. SAXTON, Mr. BRADLEY of New 

Hampshire, Mr. MCNULTY, Mr. PALLONE, Mr. PAYNE, Mr. SMITH of 

New Jersey, Mr. MENENDEZ, Mr. GARRETT of New Jersey, Mr. ANDREWS, and Mr. NEAL of Massachusetts) introduced the following bill; 

which was referred to the Committee on Ways and Means 

A BILL

To direct the Secretary of Health and Human Services to 

modify treatment categories for qualification as a rehabilitation hospital or unit for purposes of reimbursement 

under the Medicare prospective payment system for inpatient rehabilitation facilities.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. MODIFICATION OF TREATMENT CATEGORIES 

2 FOR QUALIFICATION AS A REHABILITATION 

3 HOSPITAL OR UNIT FOR PURPOSES OF REIM4 BURSEMENT UNDER THE MEDICARE PRO5 SPECTIVE PAYMENT SYSTEM FOR INPATIENT 

6 REHABILITATION FACILITIES. 

7 (a) REVISION OF REGULATIONS.—The Secretary of 

8 Health and Human Services shall revise, in accordance 

9 with subsection (b), the definition under medicare regula10 tions of the terms ‘‘rehabilitation hospital’’ and ‘‘rehabili11 tation unit’’ (as set forth under section 412.23(b) of title 

12 42 of the Code of Federal Regulations) for purposes of 

13 determining the applicable payment methodology under 

14 title XVIII of the Social Security Act (42 U.S.C. 1395 

15 et seq.). 

16 (b) MODIFICATION OF 75 PERCENT RULE.—In de17 termining whether a rehabilitation hospital or unit is eligi18 ble for reimbursement for services furnished to medicare 

19 beneficiaries under the prospective payment system for in20 patient rehabilitation facilities under section 1886(j) of 

21 the Social Security Act (42 U.S.C. 1395ww(j)), the Sec22 retary shall modify the list of treatment categories other23 wise applicable under paragraph (2) of such section 

24 412.23(b) (commonly referred to as the ‘‘75 Percent 

25 Rule’’) to include all rehabilitation impairment categories 
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1 (except miscellaneous) established by the Secretary for 

2 purposes of such prospective payment system. 

3 (c) PERIODIC UPDATE REQUIRED.—The Secretary 

4 shall update the regulations described in subsection (a) pe5 riodically to ensure that the definitions of the terms ‘‘reha6 bilitation hospital’’ and ‘‘rehabilitation unit’’ remain whol7 ly consistent with all rehabilitation impairment categories 

8 (except miscellaneous) on which payment under such sec9 tion 1886(j) is based. 

10 (d) ENFORCEMENT.—Notwithstanding any other 

11 provision of law, during the period beginning on the date 

12 of enactment of this Act and ending no earlier than the 

13 date that is six months after the date on which the Sec14 retary issues final regulations to comply with subsection 

15 (a), the Secretary shall not commence any enforcement ac16 tion or impose any sanction or penalty pertaining to retro17 active enforcement of the 75 Percent Rule on a hospital 

18 or unit for failure to meet the definition of rehabilitation 

19 hospital set forth at 42 CFR 412.23(b) as of April 30, 

20 2003.

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