II 

109TH CONGRESS 

2D SESSION S. 3767 

To delay the full implementation of the occupational mix adjustment to 

the wage index under the Medicare inpatient hospital prospective payment system. 

IN THE SENATE OF THE UNITED STATES 

AUGUST 1, 2006 

Mr. GRASSLEY (for himself and Mr. BAUCUS) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To delay the full implementation of the occupational mix 

adjustment to the wage index under the Medicare inpatient hospital prospective payment system. 

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 ‘‘Payment Accuracy Im5 provement Act of 2006’’. 


ycherry on PROD1PC64 with BILLS
2 

•S 3767 IS

1 SEC. 2. DELAY IN THE FULL IMPLEMENTATION OF THE OC2 CUPATIONAL MIX ADJUSTMENT TO THE 

3 MEDICARE INPATIENT HOSPITAL WAGE 

4 INDEX. 

5 (a) DELAY.—With respect to payments to hospitals 

6 under the Medicare program for discharges occurring on 

7 or after October 1, 2006, and before October 1, 2008, not8 withstanding any other provision of law, the following 

9 rules shall apply: 

10 (1) The Secretary of Health and Human Serv11 ices may not apply an occupational mix adjustment 

12 to more than 10 percent of the hospital area wage 

13 index under section 1886(d)(3)(E) of the Social Se14 curity Act (42 U.S.C. 1395ww(d)(3)(E)). 

15 (2) If the Secretary of Health and Human 

16 Services does apply an occupational mix adjustment 

17 to the hospital area wage index under such section 

18 1886(d)(3)(E), the Secretary shall only use the data 

19 for such adjustment that was to be used to make the 

20 adjustment to such wage index under the proposed 

21 rule published by the Secretary in the Federal Reg22 ister on April 25, 2006 (71 Fed. Reg. 24075–24076; 

23 relating to the development of data for the proposed 

24 occupational mix adjustment to the proposed fiscal 

25 year 2007 wage index). 

26 (b) STUDY AND REPORT.— 


ycherry on PROD1PC64 with BILLS
3 

•S 3767 IS

1 (1) STUDY.— 

2 (A) IN GENERAL.—The Secretary of 

3 Health and Human Services shall conduct a 

4 study on the process for applying an occupa5 tional mix adjustment to the hospital area wage 

6 index under section 1886(d)(3)(E) of the Social 

7 Security Act (42 U.S.C. 1395ww(d)(3)(E)). 

8 (B) REQUIREMENTS.—The study con9 ducted under subparagraph (A) shall include an 

10 analysis of— 

11 (i) the occupational mix data collected 

12 during the first 6 months of 2006 and the 

13 accuracy of such data; 

14 (ii) the burden on hospitals associated 

15 with complying with the survey require16 ments under such section 1886(d)(3)(E); 

17 (iii) ways to improve the instrument 

18 used in conducting the survey described 

19 clause (ii); 

20 (iv) methods for collecting data nec21 essary to apply an occupational mix adjust22 ment to the hospital area wage index under 

23 such section 1886(d)(3)(E) other than the 

24 survey described in clause (ii); and 


ycherry on PROD1PC64 with BILLS
4 

•S 3767 IS

1 (v) any other matters relating to such 

2 occupational mix adjustment that the Sec3 retary considers appropriate. 

4 (2) REPORT.—Not later than January 1, 2008, 

5 the Secretary of Health and Human Services shall 

6 submit a report to Congress on the study conducted 

7 under paragraph (1) together with recommendations 

8 for such legislation and administrative actions as the 

9 Secretary considers appropriate. 

Æ 


ycherry on PROD1PC64 with BILLS