I
106TH CONGRESS
1ST SESSION
H. R. 2361
To repeal the interim payment system for home health services furnished
under the Medicare Program, to eliminate the mandatory 15 percent
reduction in payment amounts for such services under the prospective
payment system, to continue periodic interim payments for such services,
and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 24, 1999
Mr. SANDERS introduced the following bill; which was referred to the Com-
mittee on Ways and Means, and in addition to the Committee on 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 repeal the interim payment system for home health serv-
ices furnished under the Medicare Program, to eliminate
the mandatory 15 percent reduction in payment amounts
for such services under the prospective payment system,
to continue periodic interim payments for such services,
and for other purposes.
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 Home Health
Care Restoration Act of 1999’’.
SEC. 2. REPEAL OF INTERIM PAYMENT SYSTEM.
(a) PER BENEFICIARY LIMITATION.—
(1) REPEAL.—Section 1861(v)(1)(L) of the So-
cial Security Act (42 U.S.C. 1395x(v)(1)(L)) is
amended by striking clauses (v) through (ix).
(2) 15 PERCENT
CONTINGENT
REDUCTION.—
Section 4603(e) of the Balanced Budget Act of 1997
(42 U.S.C. 1395fff note), as amended by section
5101(c)(3) of the Tax and Trade Relief Extension
Act of 1998 (Public Law 105–277), is repealed.
(b) RESTORATION OF PRE-BBA PER VISIT PAYMENT
AMOUNT.—Section 1861(v)(1)(L)(i) of such Act (42
U.S.C. 1395x(v)(1)(L)(i)) is amended—
(1) in subclause (II), by adding ‘‘or’’ at the
end;
(2) in subclause (III)—
(A) by striking ‘‘and before October 1,
1997,’’; and
(B) by striking the comma at the end and
inserting a period; and
(3) by striking subclauses (IV) and (V).
(c) EFFECTIVE DATE.—
(1) IN GENERAL.—Subject to paragraph (2),
the amendments made by this section apply to cost
reporting periods beginning on or after October 1,
1997.
(2) LIMITATION OF PAYMENTS.—No additional
payment shall be made by reason of the amendments
under subsection (a) and (b) to a home health agen-
cy that, as of the date of the enactment of this Act,
has ceased furnishing home health services for which
payment may be made under the medicare program
(under title XVIII of the Social Security Act).
SEC. 3. ELIMINATION OF 15 PERCENT REDUCTION IN BASE
RATES UNDER THE PROSPECTIVE PAYMENT
SYSTEM.
(a) 
PROSPECTIVE
PAYMENT
SYSTEM.—Section
1895(b)(3) of the Social Security Act (42 U.S.C.
1395fff(b)(3)(A)) is amended—
(1) in clause (i)—
(A) by striking ‘‘but if the reduction in
limits described in clause (ii) had been in ef-
fect’’; and
(B) by striking ‘‘(i) IN GENERAL.—’’ and
adjusting the margin accordingly; and
(2) by striking clause (ii).
(b) CONFORMING AMENDMENT.—Section 1895(d)(3)
of such Act (42 U.S.C. 1395fff(d)(3)) is amended by strik-
ing ‘‘(including the reduction described in clause (ii) of
such subsection)’’.
SEC. 4. CONTINUATION OF PERIODIC INTERIM PAYMENTS
TO HOME HEALTH AGENCIES.
Section 4603(b) of the Balanced Budget Act of 1997
(Public Law 105–33, 111 Stat. 470) is repealed.
SEC. 5. REPEAL OF FREEZES AND REDUCTIONS IN PAY-
MENT UPDATES FOR INFLATION.
(a) REPEAL
OF
TWO-YEAR
FREEZE
IN
HOME
HEALTH MARKET BASKET PERCENTAGE INCREASE.—
Section 1861(v)(1)(L) of the Social Security Act (42
U.S.C. 1395x(v)(1)(L)) is amended by striking clause (iv).
(b) REPEAL OF DELAY IN UPDATES FOR WAGES AND
WAGE-RELATED COSTS.—Section 1861(v)(1)(L)(iii) of
such Act (42 U.S.C. 1395x(v)(1)(L)(iii)) is amended by
striking ‘‘, or on or after July 1, 1997, and before October
1, 1997’’.
(c) REPEAL OF REDUCTION IN HOME HEALTH MAR-
KET BASKET PERCENTAGE INCREASE UNDER THE PRO-
SPECTIVE PAYMENT SYSTEM.—Section 1895(b)(3)(B) of
such Act (42 U.S.C. 1395fff(b)(3)(B)), as amended by
section 5101(d)(2) of the Tax and Trade Relief Extension
Act of 1998 (Public Law 105–277), is amended—
(1) in clause (i), by striking ‘‘home health ap-
plicable increase percentage (as defined in clause
(ii))’’ and inserting ‘‘home health market basket per-
centage increase’’;
(2) by striking clause (ii); and
(3) by redesignating clause (iii) as clause (ii).
(d) EFFECTIVE DATE.—
(1) IN GENERAL.—Subject to paragraph (2),
the amendments made by subsections (a) and (b)
apply with respect to cost reporting periods begin-
ning on or after October 1, 1997.
(2) LIMITATION OF PAYMENTS.—No additional
payment shall be made by reason of the amendments
under subsection (a) and (b) to a home health agen-
cy that, as of the date of the enactment of this Act,
has ceased furnishing home health services for which
payment may be made under the medicare program
(under title XVIII of the Social Security Act).
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