A bill to amend title XVIII of the Social Security Act to freeze at 50 percent the proportion of hospital payments made on the basis of DRG prospective payment rates, and to freeze the current blend of regional and national rates in determining the DRG prospective payment rates, under the medicare program.

Amends title XVIII (Medicare) of the Social Security Act to provide that the payment rate for inpatient hospital services shall be equal to the sum of 50 percent of a hospital's target amount and 50 percent of the applicable combined adjusted DRG prospective payment rate. Defines the "applicable combined adjusted DRG prospective payment rate" as a combined rate consisting of: (1) 25 percent of the national adjusted DRG prospective payment rate; and (2) 75 percent of the regional adjusted DRG prospective payment rate.