I

107TH CONGRESS

1ST SESSION H. R. 975

To amend title XVIII of the Social Security Act to eliminate the 15 percent

reduction in payment rates under the prospective payment system for

home health services under the Medicare Program and to permanently

increase payments for such services that are furnished in rural areas.

IN THE HOUSE OF REPRESENTATIVES

MARCH 13, 2001

Mr. WATKINS (for himself, Mr. WATTS of Oklahoma, Mr. PETERSON of Pennsylvania, Mr. JEFFERSON, Mr. MCGOVERN, Mr. LAFALCE, Mr.

MCHUGH, Mr. HILLEARY, Mr. RAHALL, Mr. SESSIONS, Mr. MCNULTY,

Mr. FROST, Mr. PICKERING, Mr. ROGERS of Michigan, Mr. GORDON, Ms.

HART, Mr. BLUMENAUER, Mr. DEAL of Georgia, Mr. TOWNS, Mr.

WALSH, Mr. KANJORSKI, Mr. KILDEE, Ms. CARSON of Indiana, Mrs.

MINK of Hawaii, Mr. DOYLE, Mr. BALDACCI, Ms. BERKLEY, Mr. JONES

of North Carolina, Mrs. THURMAN, Ms. SLAUGHTER, Mr. DEFAZIO, Mr.

MASCARA, Mr. SMITH of Washington, Ms. WOOLSEY, Mr. PAUL, Ms.

LEE, Ms. KILPATRICK, Ms. HOOLEY of Oregon, Mr. OLVER, and Mr.

MALONEY of Connecticut) 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 eliminate

the 15 percent reduction in payment rates under the

prospective payment system for home health services

under the Medicare Program and to permanently increase payments for such services that are furnished

in rural areas.
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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 ‘‘Home Health Fairness

5 Act of 2001’’.

6 SEC. 2. ELIMINATION OF 15 PERCENT REDUCTION IN PAY7 MENT RATES UNDER THE PROSPECTIVE PAY8 MENT SYSTEM FOR HOME HEALTH SERVICES.

9 (a) IN GENERAL.—Section 1895(b)(3)(A) of the So10 cial Security Act (42 U.S.C. 1395fff(b)(3)(A)), as amend11 ed by section 501(a) of the Medicare, Medicaid, and

12 SCHIP Benefits Improvement and Protection Act of 2000

13 (as enacted into law by section 1(a)(6) of Public Law 106–

14 554), is amended to read as follows:

15 ‘‘(A) INITIAL BASIS.—Under such system

16 the Secretary shall provide for computation of

17 a standard prospective payment amount (or

18 amounts) as follows:

19 ‘‘(i) Such amount (or amounts) shall

20 initially be based on the most current au21 dited cost report data available to the Sec22 retary and shall be computed in a manner

23 so that the total amounts payable under

24 the system for fiscal year 2001 shall be

25 equal to the total amount that would have
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1 been made if the system had not been in

2 effect and if section 1861(v)(1)(L)(ix) had

3 not been enacted.

4 ‘‘(ii) For fiscal year 2002 and for

5 each subsequent fiscal year, such amount

6 (or amounts) shall be equal to the amount

7 (or amounts) determined under this para8 graph for the previous fiscal year, updated

9 under subparagraph (B).

10 Each such amount shall be standardized in a

11 manner that eliminates the effect of variations

12 in relative case mix and area wage adjustments

13 among different home health agencies in a

14 budget neutral manner consistent with the case

15 mix and wage level adjustments provided under

16 paragraph (4)(A). Under the system, the Sec17 retary may recognize regional differences or dif18 ferences based upon whether or not the services

19 or agency are in an urbanized area.’’.

20 (b) ELIMINATION OF REPORT.—Section 302(c) of the

21 Medicare, Medicaid, and SCHIP Balanced Budget Refine22 ment Act of 1999 (Appendix F, 113 Stat. 1501A–360),

23 as enacted into law by section 1000(a)(6) of Public Law

24 106–113, and as amended by section 501(b) of the Medi25 care, Medicaid, and SCHIP Benefits Improvement and
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1 Protection Act of 2000 (as enacted into law by section

2 1(a)(6) of Public Law 106–554), is repealed.

3 (c) EFFECTIVE DATE.—The amendments made by

4 this section shall take effect as if included in the amend5 ments made by section 501 of the Medicare, Medicaid, and

6 SCHIP Benefits Improvement and Protection Act of 2000

7 (as enacted into law by section 1(a)(6) of Public Law 106–

8 554).

9 SEC. 3. PERMANENT INCREASE FOR HOME HEALTH SERV10 ICES FURNISHED IN A RURAL AREA.

11 (a) IN GENERAL.—Section 1895 of the Social Secu12 rity Act (42 U.S.C. 1395fff ), as amended by section 504

13 of the Medicare, Medicaid, and SCHIP Benefits Improve14 ment and Protection Act of 2000 (as enacted into law by

15 section 1(a)(6) of Public Law 106–554), is amended by

16 adding at the end the following new subsection:

17 ‘‘(f) INCREASE FOR SERVICES FURNISHED IN A

18 RURAL AREA.—

19 ‘‘(1) IN GENERAL.—In the case of home health

20 services furnished in a rural area (as defined in sec21 tion 1886(d)(2)(D)) on or after April 1, 2001, the

22 Secretary shall increase the payment amount other23 wise made under this section for such services by 10

24 percent.
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1 ‘‘(2) WAIVER OF BUDGET NEUTRALITY.—The

2 Secretary shall not reduce the standard prospective

3 payment amount (or amounts) under this section ap4 plicable to home health services furnished during a

5 period to offset the increase in payments resulting

6 from the application of paragraph (1).’’.

7 (b) CONFORMING AMENDMENT.—Section 508 of the

8 Medicare, Medicaid, and SCHIP Benefits Improvement

9 and Protection Act of 2000 (as enacted into law by section

10 1(a)(6) of Public Law 106–554) is repealed.

11 (c) EFFECTIVE DATE.—The amendments made by

12 this section shall take effect as if included in the enact13 ment of the Medicare, Medicaid, and SCHIP Benefits Im14 provement and Protection Act of 2000 (as enacted into

15 law by section 1(a)(6) of Public Law 106–554).

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