A bill to amend title XVIII of the Social Security Act to permit an increase in the payment amount for inpatient hospital services under part A of the medicare program for certain high cost hospitals located in a rural area near an urban area.

Amends title XVIII (Medicare) of the Social Security Act to permit certain rural hospitals located within 75 miles of an urban area to request increased payments for inpatient hospital services so that the portion of such services paid for by Medicare approximates the portion covered for hospitals in the nearest urban area. Authorizes the Secretary of Health and Human Services to require hospitals making a request for increased payments to submit an audit of its costs.

Entitles the hospital to an evidentiary hearing before an appeals board if the Secretary disapproves the hospital's request. Requires the Secretary to appoint an appeals board composed of specified members of the health care community. Specifies the board's powers and duties of review.

Sets deadlines for the publication of, comment on, and finalization of regulations implementing this Act.