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<PRE>[DOCID: f:s659is.txt]






107th CONGRESS
  1st Session
                                 S. 659

  To amend title XVIII of the Social Security Act to adjust the labor 
  costs relating to items and services furnished in a geographically 
   reclassified hospital for which reimbursement under the medicare 
              program is provided on a prospective basis.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 29, 2001

    Mr. Crapo (for himself, Mr. Craig, Mr. Hagel, Mr. Cochran, Mrs. 
   Lincoln, Mr. Roberts, Mr. Helms, Mr. Dayton, and Mr. Hutchinson) 
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 adjust the labor 
  costs relating to items and services furnished in a geographically 
   reclassified hospital for which reimbursement under the medicare 
              program is provided on a prospective basis.

    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 ``Medicare Geographic Adjustment 
Fairness Act of 2001''.

SEC. 2. HOSPITAL GEOGRAPHIC RECLASSIFICATION FOR LABOR COSTS FOR ALL 
              ITEMS AND SERVICES REIMBURSED UNDER PROSPECTIVE PAYMENT 
              SYSTEMS.

    Section 1886(d)(10)(D) of the Social Security Act (42 U.S.C. 
1395ww(d)(10)(D)), as amended by section 304(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 
by adding at the end the following new clause:
    ``(vii)(I) Any decision of the Board to reclassify a subsection (d) 
hospital for purposes of the adjustment factor described in 
subparagraph (C)(i)(II) for fiscal year 2001 or any fiscal year 
thereafter shall apply for purposes of adjusting payments for 
variations in costs that are attributable to wages and wage-related 
costs for PPS-reimbursed items and services.
    ``(II) For purposes of subclause (I), the term `PPS-reimbursed 
items and services' means, for the fiscal year for which the Board has 
made a decision described in such subclause, each item and service for 
which payment is made under this title on a prospective basis and 
adjusted for variations in costs that are attributable to wages or 
wage-related costs that is furnished by the hospital to which such 
decision applies, or by a provider-based entity or department of that 
hospital (as determined by the Secretary).''.
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