I
107TH CONGRESS
1ST SESSION
H. R. 2483
To amend title XVIII of the Social Security Act to improve the provision
of items and services provided to Medicare beneficiaries residing in rural
areas.
IN THE HOUSE OF REPRESENTATIVES
JULY 12, 2001
Mr. BOSWELL (for himself, Mr. BARRETT of Wisconsin, and Mr. OSBORNE)
introduced the following bill; which was referred to the Committee on
Ways and Means, and in addition to the Committee on Energy and Com-
merce, for a period to be subsequently determined by the Speaker, in
each case for consideration of such provisions as fall within the jurisdic-
tion of the committee concerned
A BILL
To amend title XVIII of the Social Security Act to improve
the provision of items and services provided to Medicare
beneficiaries residing in rural areas.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Medicare Fairness in
Reimbursement Act of 2001’’.
SEC. 2. IMPROVING FAIRNESS OF PAYMENTS TO PRO-
VIDERS UNDER THE MEDICARE FEE-FOR-
SERVICE PROGRAM.
Title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.) is amended by adding at the end the fol-
lowing new section:
‘‘IMPROVING FAIRNESS OF PAYMENTS UNDER THE
ORIGINAL MEDICARE FEE-FOR-SERVICE PROGRAM
‘‘SEC. 1897. (a) ESTABLISHMENT OF SYSTEM.—Not-
withstanding any other provision of law, the Secretary
shall establish a system for making adjustments to the
amount of payment made to entities and individuals for
items and services provided under the original medicare
fee-for-service program under parts A and B.
‘‘(b) SYSTEM REQUIREMENTS.—
‘‘(1) ADJUSTMENTS.—Under the system de-
scribed in subsection (a), the Secretary (beginning in
2002) shall make the following adjustments:
‘‘(A) CERTAIN STATES ABOVE NATIONAL
AVERAGE.—If a State average per beneficiary
amount for a year is greater than 105 percent
(or 110 percent in the case of the determination
made in 2001) of the national average per ben-
eficiary amount for such year, then the Sec-
retary shall reduce the amount of applicable
payments in such a manner as will result (as
estimated by the Secretary) in the State aver-
age per beneficiary amount for the subsequent
year being at 105 percent (or 110 percent in
the case of payments made in 2002) of the na-
tional average per beneficiary amount for such
subsequent year.
‘‘(B) CERTAIN STATES BELOW NATIONAL
AVERAGE.—If a State average per beneficiary
amount for a year is less than 95 percent (or
90 percent in the case of the determination
made in 2001) of the national average per ben-
eficiary amount for such year, then the Sec-
retary shall increase the amount of applicable
payments in such a manner as will result (as
estimated by the Secretary) in the State aver-
age per beneficiary amount for the subsequent
year being at 95 percent (or 90 percent in the
case of payments made in 2002) of the national
average per beneficiary amount for such subse-
quent year.
‘‘(2) DETERMINATION OF AVERAGES.—
‘‘(A) STATE AVERAGE PER BENEFICIARY
AMOUNT.—Each year (beginning in 2001), the
Secretary shall determine a State average per
beneficiary amount for each State which shall
be equal to the Secretary’s estimate of the aver-
age amount of expenditures under the original
medicare fee-for-service program under parts A
and B for the year for a beneficiary enrolled
under such parts that resides in the State.
‘‘(B) NATIONAL
AVERAGE
PER
BENE-
FICIARY
AMOUNT.—Each year (beginning in
2001), the Secretary shall determine the na-
tional average per beneficiary amount which
shall be equal to the average of the State aver-
age per beneficiary amounts determined under
subparagraph (B) for the year.
‘‘(3) APPLICABLE
PAYMENTS
DEFINED.—In
this section, the term ‘applicable payments’ means
payments made to entities and individuals for items
and services provided under the original medicare
fee-for-service program under parts A and B to
beneficiaries enrolled under such parts that reside in
the State.
‘‘(c) BENEFICIARIES HELD HARMLESS.—The provi-
sions of this section shall not effect—
‘‘(1) the entitlement to items and services of a
beneficiary under this title, including the scope of
such items and services; or