Page:United States Statutes at Large Volume 100 Part 1.djvu/197

 PUBLIC LAW 99-272—APR. 7, 1986

100 STAT. 161

(1) LIMITATION ON RATE.—Section 1861(v)(l) of such Act (42 U.S.C. 1395x(v)(l)) is amended by adding at the end the following new subparagraph: "(P) If such regulations provide for the payment for a return on equity capital (other than with respect to costs of inpatient hospital services), the rate of return to be recognized, for determining the reasonable cost of services furnished in a cost reporting period, shall be equal to the average of the rates of interest, for each of the months any part of which is included in the period, on obligations issued for purchase by the Federal Hospital Insurance Trust Fund.". (2) CONFORMING AMENDMENTS.—Section 1861(v)(l)(B) of such Act is amended— (A) by striking out "any fiscal period" and "such fiscal period" and inserting in lieu thereof "any cost reporting .,, period" and "the period", respectively, and (B) by striking out "not exceed one and one-half times" in the second sentence and inserting in lieu thereof "be equal to". (c) EFFECTIVE DATES.—(1) The amendments made by subsection (a) 42 USC 1395WW shall apply to hospital cost reporting periods beginning on or after note. October 1, 1986. (2) The amendments made by subsection (b) shall apply to cost 42 USC 1395x note. reporting periods beginning on or after October 1, 1985. SEC. 9108. CONTINUATION OF MEDICARE REIMBURSEMENT WAIVERS FOR CERTAIN HOSPITALS PARTICIPATING IN REGIONAL HOSPITAL REIMBURSEMENT DEMONSTRATIONS.

(a) CONTINUATION OF WAIVERS.—A hospital reimbursement control system which, on January 1, 1985, was carrying out a demonstration under a contract which had been approved by the Secretary of Health and Human Services pursuant to section 222(a) of the Social Security Amendments of 1972, or under section 402 of the Social Security Amendments of 1967 (as amended by section 222(b) of the Social Security Amendments of 1972), shall be deemed to meet the requirements of section 1886(c)(1)(A) of the Social Security Act if such system applies— (1) to substantially all non-Federal acute care hospitals (as defined by the Secretary) in the geographic area served by such system on January 1, 1985, and (2) to the review of at least 75 percent of— (A) all revenues or expenses in such geographic area for inpatient hospital services, and (B) revenues or expenses in such geographic area for inpatient hospital services provided under the State's plan approved under title XIX. (b) APPROVAL.—In the case of a hospital cost control system described in subsection (a), the requirements of section 1886(c) of the Social Security Act which apply to States shall instead apply to such system and, for such purposes, any reference to a State is deemed a reference to such system. (c) EFFECTIVE DATE.—This section shall become effective on the date of the enactment of this Act. SEC. 9109. FOUR-YEAR TEST FOR STATE WAIVERS FOR CERTAIN STATES.

(a) IN GENERAL.—Section 1886(c) of the Social Security Act (42 U.S.C 1395ww(c)) is amended by adding at the end the following new paragraph:

42 USC 1395WW note.

42 USC 1395b-l note.

Infra.

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