Bill Sponsor
House Bill 1130
115th Congress(2017-2018)
Fair Medicare Hospital Payments Act of 2017
Introduced
Introduced
Introduced in House on Feb 16, 2017
Overview
Text
Introduced in House 
Feb 16, 2017
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Introduced in House(Feb 16, 2017)
Feb 16, 2017
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Multiple bills can contain the same text. This could be an identical bill in the opposite chamber or a smaller bill with a section embedded in a larger bill.
Bill Sponsor regularly scans bill texts to find sections that are contained in other bill texts. When a matching section is found, the bills containing that section can be viewed by clicking "View Bills" within the bill text section.
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H. R. 1130 (Introduced-in-House)


115th CONGRESS
1st Session
H. R. 1130


To amend title XVIII of the Social Security Act to ensure fairness in Medicare hospital payments by establishing a floor for the area wage index applied with respect to certain hospitals.


IN THE HOUSE OF REPRESENTATIVES

February 16, 2017

Mrs. Black (for herself, Ms. Sewell of Alabama, Mrs. Blackburn, Mr. Roe of Tennessee, Mr. Byrne, Mr. Cohen, Mrs. Roby, Mr. Rogers of Alabama, Mr. Brooks of Alabama, Mr. Duncan of Tennessee, Mr. Cooper, Mr. DesJarlais, Mr. Fleischmann, Mr. Kustoff of Tennessee, and Mr. Aderholt) introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

To amend title XVIII of the Social Security Act to ensure fairness in Medicare hospital payments by establishing a floor for the area wage index applied with respect to certain hospitals.

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 “Fair Medicare Hospital Payments Act of 2017”.

SEC. 2. Ensuring fairness in Medicare hospital payments in a budget neutral manner.

(a) Hospital inpatient services.—Section 1886(d)(3)(E) of the Social Security Act (42 U.S.C. 1395www(d)(3)(E)) is amended—

(1) in clause (i), by striking “clause (ii) or (iii)” and inserting “clause (ii), (iii), or (iv)”; and

(2) by adding at the end the following new clause:

“(iv) FLOOR ON AREA WAGE INDEX FOR HOSPITALS IN CERTAIN OTHER AREAS.—

“(I) IN GENERAL.—For discharges occurring on or after October 1, 2017, the area wage index applicable under this subparagraph to any hospital which is not located in a frontier State (as defined in clause (iii)(II)) may not be less than 0.874.

“(II) ENSURING BUDGET NEUTRALITY.—In order to ensure that the aggregate payments made under this subsection for a fiscal year (beginning with fiscal year 2018) are not greater than the aggregate payments that would have been made under this subsection for such fiscal year without the application of subclause (I), as estimated by the Secretary, the Secretary shall establish pursuant to rulemaking a maximum area wage index to apply under this subparagraph to any hospital which is not located in a frontier State (as defined in clause (iii)(II)).

“(III) NO IMPACT FOR HOSPITALS WITH AN AREA WAGE INDEX BETWEEN THE FLOOR AND THE MAXIMUM INDEX.—Subclauses (I) and (II) shall have no effect on the area wage index applicable in a fiscal year to a hospital with an area wage index that is greater than the floor under subclause (I) but less than the maximum area wage index established under subclause (II) for the fiscal year.”.

(b) Hospital outpatient department services.—Section 1833(t) of the Social Security Act (42 U.S.C. 1395l(t)), is amended—

(1) in paragraph (2)(D), by striking “paragraph (19), the Secretary” and inserting “paragraphs (19) and (22), the Secretary”; and

(2) by adding at the end the following new paragraph:

“(22) FLOOR ON AREA WAGE ADJUSTMENT FACTOR FOR HOSPITAL OUTPATIENT DEPARTMENT SERVICES IN AREAS OTHER THAN IN FRONTIER STATES.—

“(A) IN GENERAL.—With respect to covered OPD services furnished on or after January 1, 2018, the area wage adjustment factor applicable under the payment system established under this subsection to any hospital outpatient department which is not located in a frontier State (as defined in section 1886(d)(3)(E)(iii)(II)) may not be less than 0.874.

“(B) ENSURING BUDGET NEUTRALITY.—In order to ensure that the aggregate payments made under this subsection for a year (beginning with 2018) are not greater than the aggregate payments that would have been made under this subsection for such year without the application of subparagraph (A), as estimated by the Secretary, the Secretary shall establish pursuant to rulemaking a maximum area wage adjustment factor to apply under the payment system established under this subsection to any hospital outpatient department which is not located in a frontier State (as defined in clause (iii)(II)).

“(C) NO IMPACT FOR HOSPITALS WITH AN AREA WAGE ADJUSTMENT FACTOR BETWEEN THE FLOOR AND THE MAXIMUM FACTOR.—Subparagraphs (A) and (B) shall have no effect on the area wage adjustment factor applicable in a year to a hospital with an area wage adjustment factor that is greater than the floor under subparagraph (A) but less than the maximum area wage adjustment factor established under subparagraph (B) for the year.”.