I 

110TH CONGRESS 

1ST SESSION H. R. 1563 

To amend part C of title XVIII of the Social Security Act to provide 

for a minimum payment rate by Medicare Advantage organizations for 

services furnished by a critical access hospital and a rural health clinic 

under the Medicare Program. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 19, 2007 

Mr. BARROW 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 part C of title XVIII of the Social Security Act 

to provide for a minimum payment rate by Medicare 

Advantage organizations for services furnished by a critical access hospital and a rural health clinic under the 

Medicare Program. 

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 ‘‘Rural Health Services 

5 Preservation Act of 2007’’. 


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1 SEC. 2. MINIMUM PAYMENT RATE BY MEDICARE ADVAN2 TAGE ORGANIZATIONS FOR SERVICES FUR3 NISHED BY A CRITICAL ACCESS HOSPITAL 

4 AND A RURAL HEALTH CLINIC. 

5 (a) IN GENERAL.—Section 1857(e) of the Social Se6 curity Act (42 U.S.C. 1395w–27(e)) is amended by adding 

7 at the end the following: 

8 ‘‘(4) MINIMUM PAYMENT RATE FOR SERVICES

9 FURNISHED BY A CRITICAL ACCESS HOSPITAL AND

10 A RURAL HEALTH CLINIC.—A contract under this 

11 section between an MA organization and the Sec12 retary for the offering of an MA plan shall require 

13 the organization to provide for a payment rate under 

14 the plan for inpatient and outpatient critical access 

15 hospital services and rural health clinic services fur16 nished to enrollees of the plan and for extended care 

17 services furnished by a critical access hospital under 

18 an agreement entered into under section 1883 to 

19 such enrollees (whether or not the services are fur20 nished pursuant to an agreement between such orga21 nization and a critical access hospital or a rural 

22 health clinic) that is not less than— 

23 ‘‘(A) the applicable payment rate estab24 lished under part A or part B (which includes 

25 the payment of an interim rate and a subse26 quent cost reconciliation) with respect to the 


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1 critical access hospital for such inpatient, out2 patient, and extended care services or the rural 

3 health clinic for such rural health clinic serv4 ices; or 

5 ‘‘(B) if the critical access hospital or the 

6 rural health clinic determines appropriate, 103 

7 percent of the applicable interim payment rate 

8 established under part A or part B with respect 

9 to the critical access hospital for such inpatient, 

10 outpatient, and extended care services or the 

11 rural health clinic for such rural health clinic 

12 services.’’. 

13 (b) EFFECTIVE DATE.—The amendment made by 

14 this section shall apply to Medicare Advantage contract 

15 years beginning on or after January 1, 2008. 

Æ 


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