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 Penn-
sylvania, 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 re-
ferred to the Committee on Ways and Means, and in addition to the
Committee on Energy and Commerce, for a period to be subsequently de-
termined 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 in-
crease payments for such services that are furnished
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 ‘‘Home Health Fairness
Act of 2001’’.
SEC. 2. ELIMINATION OF 15 PERCENT REDUCTION IN PAY-
MENT RATES UNDER THE PROSPECTIVE PAY-
MENT SYSTEM FOR HOME HEALTH SERVICES.
(a) IN GENERAL.—Section 1895(b)(3)(A) of the So-
cial Security Act (42 U.S.C. 1395fff(b)(3)(A)), as amend-
ed by section 501(a) of the Medicare, Medicaid, and
SCHIP Benefits Improvement and Protection Act of 2000
(as enacted into law by section 1(a)(6) of Public Law 106–
554), is amended to read as follows:
‘‘(A) INITIAL BASIS.—Under such system
the Secretary shall provide for computation of
a standard prospective payment amount (or
amounts) as follows:
‘‘(i) Such amount (or amounts) shall
initially be based on the most current au-
dited cost report data available to the Sec-
retary and shall be computed in a manner
so that the total amounts payable under
the system for fiscal year 2001 shall be
equal to the total amount that would have
been made if the system had not been in
effect and if section 1861(v)(1)(L)(ix) had
not been enacted.
‘‘(ii) For fiscal year 2002 and for
each subsequent fiscal year, such amount
(or amounts) shall be equal to the amount
(or amounts) determined under this para-
graph for the previous fiscal year, updated
under subparagraph (B).
Each such amount shall be standardized in a
manner that eliminates the effect of variations
in relative case mix and area wage adjustments
among different home health agencies in a
budget neutral manner consistent with the case
mix and wage level adjustments provided under
paragraph (4)(A). Under the system, the Sec-
retary may recognize regional differences or dif-
ferences based upon whether or not the services
or agency are in an urbanized area.’’.
(b) ELIMINATION OF REPORT.—Section 302(c) of the
Medicare, Medicaid, and SCHIP Balanced Budget Refine-
ment Act of 1999 (Appendix F, 113 Stat. 1501A–360),
as enacted into law by section 1000(a)(6) of Public Law
106–113, and as amended by section 501(b) of the Medi-
care, Medicaid, and SCHIP Benefits Improvement and
Protection Act of 2000 (as enacted into law by section
1(a)(6) of Public Law 106–554), is repealed.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the amend-
ments made by section 501 of the Medicare, Medicaid, and
SCHIP Benefits Improvement and Protection Act of 2000
(as enacted into law by section 1(a)(6) of Public Law 106–
554).
SEC. 3. PERMANENT INCREASE FOR HOME HEALTH SERV-
ICES FURNISHED IN A RURAL AREA.
(a) IN GENERAL.—Section 1895 of the Social Secu-
rity Act (42 U.S.C. 1395fff ), as amended by section 504
of the Medicare, Medicaid, and SCHIP Benefits Improve-
ment and Protection Act of 2000 (as enacted into law by
section 1(a)(6) of Public Law 106–554), is amended by
adding at the end the following new subsection:
‘‘(f) INCREASE
FOR SERVICES FURNISHED
IN
A
RURAL AREA.—
‘‘(1) IN GENERAL.—In the case of home health
services furnished in a rural area (as defined in sec-
tion 1886(d)(2)(D)) on or after April 1, 2001, the
Secretary shall increase the payment amount other-
wise made under this section for such services by 10
percent.
‘‘(2) WAIVER OF BUDGET NEUTRALITY.—The
Secretary shall not reduce the standard prospective
payment amount (or amounts) under this section ap-
plicable to home health services furnished during a
period to offset the increase in payments resulting
from the application of paragraph (1).’’.
(b) CONFORMING AMENDMENT.—Section 508 of the
Medicare, Medicaid, and SCHIP Benefits Improvement
and Protection Act of 2000 (as enacted into law by section
1(a)(6) of Public Law 106–554) is repealed.
(c) EFFECTIVE DATE.—The amendments made by
this section shall take effect as if included in the enact-
ment of the Medicare, Medicaid, and SCHIP Benefits Im-
provement and Protection Act of 2000 (as enacted into
law by section 1(a)(6) of Public Law 106–554).
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