‘‘(2) DEFINITION.—For purposes of this sec-
tion, the term ‘provider payment update period’
means—
‘‘(A) in the case of the payment systems
established under section 1833(t) and section
1848, a calendar year;
‘‘(B) in the case the payment systems es-
tablished under section 1833(i)(2)(A) and sec-
tion 1886(d), a fiscal year beginning on October
1; and
‘‘(C) in the case of a payment system re-
ferred to in subsection (f), such calendar year
or such fiscal year, as determined by the Sec-
retary.
‘‘(f) ANNUAL UPDATES FOR OTHER MEDICARE PAY-
MENT SYSTEMS.—The provisions of subsection (a) shall
apply to payment systems established under this title
(other than those specified in subsection (a)) in the same
manner as they apply to the payment systems specified
in such subsection.’’.
(b) CONFORMING AMENDMENTS.—
(1) AMBULATORY SURGICAL CENTERS.—Section
1833(i)(2)(A) of the Social Security Act (42 U.S.C.
1395l(i)(2)(A)) is amended by striking ‘‘Each’’ in
the second sentence thereof and inserting ‘‘Subject
to section 1889, each’’.
(2) OUTPATIENT HOSPITAL PROSPECTIVE PAY-
MENT SYSTEM.—Section 1833(t)(6)(A) of such Act
(42 U.S.C. 1395l(t)(6)(A)) is amended by striking
‘‘The’’ and inserting ‘‘Subject to section 1889, the’’.
(3) 
PHYSICIAN
PAYMENT.—Section
1848(c)(2)(B)(i) of such Act (42 U.S.C. 1395w-
4(c)(2)(B)(i)) is amended by striking ‘‘The’’ and in-
serting ‘‘Subject to section 1889, the’’.
(4) INPATIENT
HOSPITAL
PROSPECTIVE
PAY-
MENT
SYSTEM.—Section 1886(d)(4)(C)(i) of such
Act (42 U.S.C. 1395ww(d)(4)(C)(i)) is amended by
striking ‘‘The’’ and inserting ‘‘Subject to section
1889, the’’.
SEC. 5. PROCESS FOR MAKING AND IMPLEMENTING CER-
TAIN CODING MODIFICATIONS.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.), the Secretary of Health and Human Serv-
ices shall—
(1) accept recommendations for HCPCS level II
code modifications from the public throughout the
year;
(2) cause determinations on recommendations
received during the three months immediately pre-
ceding the last month of a calendar quarter to be
made not later than the first day of the following
calendar quarter; and
(3) incorporate approved modifications to
HCPCS level II codes into the payment systems es-
tablished under such title (including the medicare
fee schedule data base) not later than 180 days after
the date on which the determination approving a
modification was made.
(b) ELIMINATION
OF
REQUIREMENT
FOR
MAR-
KETING EXPERIENCE.—Notwithstanding any other provi-
sion of title XVIII of the Social Security Act, the Sec-
retary of Health and Human Services may not require a
minimum period of marketing experience with respect to
a drug or device as a condition of consideration or ap-
proval of a recommendation for a HCPCS level II modi-
fication for such drug or device.
(c) DEFINITION.—For purposes of this section, the
term ‘‘HCPCS level II code modification’’ means any
change to the alpha-numeric codes for items not included
in level I or level III of the Health Care Financing Admin-
istration Common Procedure Coding System (HCPCS).
(d) REPORT.—Not later than 180 days after the date
of the enactment of this Act, the Secretary of Health and
Human Services shall submit to Congress a report on the
feasibility and desirability of opening meetings of the
Alpha-Numeric Editorial Panel of the Department of
Health and Human Services to the public. If the Secretary
determines that opening such meetings to the public is not
feasible or desirable, the Secretary shall include in the re-
port a detailed explanation of the reasons for such deter-
mination.
(e) EFFECTIVE DATE.—The provisions of this section
take effect on January 1, 2000.
SEC. 6. RETENTION OF HCPCS LEVEL III CODES.
(a) IN GENERAL.—The Secretary of Health and
Human Services shall maintain and continue the use of
HCPCS level III codes (as in effect on June 1, 1999),
and shall make such codes available to the public.
(b) DEFINITION.—For purposes of this section, the
term ‘‘HCPCS Level III codes’’ means the alpha-numeric
codes for local use under the Health Care Financing Ad-
ministration 
Common 
Procedure 
Coding 
System
(HCPCS).
Æ