Home Health Payment Fairness Act of 2001

Home Health Payment Fairness Act of 2001 - Amends title XVIII (Medicare) of the Social Security Act, as amended by the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000, to eliminate a specified 15 percent reduction in cost and per beneficiary limits with respect to payment rates for home health services under the Medicare prospective payment system (PPS).

Directs the Secretary of Health and Human Services to increase payment by ten percent for home health services furnished in a rural area on or after April 1, 2001; but prohibits the Secretary from reducing the standard PPS amount (or amounts) applicable to such services furnished during a period to offset the payment increase resulting from such requirement.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 326 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                 S. 326

  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 and to permanently increase payments for such 
              services that are furnished in rural areas.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 14, 2001

Ms. Collins (for herself, Mr. Bond, Mr. Kerry, Mr. Reed, Mr. Jeffords, 
  Mr. Roberts, Mr. Levin, Mr. Hutchinson, Mrs. Murray, Mr. Enzi, Ms. 
  Mikulski, Mr. Smith of New Hampshire, Mr. Santorum, Mr. Chafee, Mr. 
  DeWine, Mr. Helms, Mrs. Hutchison, Mr. Specter, Mr. Murkowski, Ms. 
    Snowe, Mr. Warner, Mr. Gregg, Mrs. Carnahan, Mr. Lugar, and Mr. 
   Cochran) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 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 and to permanently increase payments for such 
              services that are furnished in rural areas.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Home Health Payment Fairness Act of 
2001''.

SEC. 2. ELIMINATION OF 15 PERCENT REDUCTION IN PAYMENT RATES UNDER THE 
              PROSPECTIVE PAYMENT SYSTEM FOR HOME HEALTH SERVICES.

    (a) In General.--Section 1895(b)(3)(A) of the Social Security Act 
(42 U.S.C. 1395fff(b)(3)(A)), as amended 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 audited 
                        cost report data available to the Secretary 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 in such year 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 paragraph 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 Secretary 
                may recognize regional differences or differences 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 Refinement 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 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 amendments 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 SERVICES FURNISHED IN A 
              RURAL AREA.

    (a) In General.--Section 1895 of the Social Security Act (42 U.S.C. 
1395fff), as amended by section 504 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 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 section 1886(d)(2)(D)) 
        on or after April 1, 2001, the Secretary shall increase the 
        payment amount otherwise 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 applicable 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 enactment 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).
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