Page:United States Statutes at Large Volume 111 Part 1.djvu/438

 Ill STAT. 414 PUBLIC LAW 105-33—AUG. 5, 1997 1, 2000, except that the Secretary of Health and Human Services may require the submission of data under section 1886(j)(2)(D) of the Social Security Act (as added by subsection (a)) on and after the date of the enactment of this section. 42 USC 1395WW SEC. 4422. DEVELOPMENT OF PROPOSAL ON PAYMENTS FOR LONG- note. TERM CARE HOSPITALS. (a) IN GENERAL. — (1) LEGISLATIVE PROPOSAL.—The Secretary of Health and Human Services shall develop a legislative proposal for establishing a case-mix adjusted prospective payment system for payment of long-term care hospitals described in section 1886(d)(l)(B)(iv) of the Social Security Act (42 U.S.C. 1395ww(d)(l)(B)(iv)) under the medicare program. Such system shall include an adequate patient classification system that reflects the differences in patient resource use and costs among such hospitals. (2) COLLECTION OF DATA AND EVALUATION. — In developing the legislative proposal described in paragraph (1), the Secretary— (A) may require such long-term care hospitals to submit such information to the Secretary as the Secretary may require to develop the proposal; and (B) shall consider several payment methodologies, including the feasibility of expanding the current diagnosisrelated groups and prospective payment system established under section 1886(d) of the Social Security Act to apply to payments under the medicare program to long-term care hospitals. (b) REPORT.— Not later than October 1, 1999, the Secretary shall submit to the appropriate committees of Congress a report that includes the legislative proposal developed under subsection (a)(1). CHAPTER 3—PAYMENT FOR SKILLED NURSmG FACILITIES SEC. 4431. EXTENSION OF COST LIMITS. The last sentence of section 1888(a) (42 U.S.C. 1395yy(a)) is amended by striking "subsection" the last place it appears and all that follows and inserting "subsection, except that the limits effective for cost reporting periods beginning on or after October 1, 1997, shall be based on the limits effective for cost reporting periods beginning on or after October 1, 1996.". SEC. 4432. PROSPECTIVE PAYMENT FOR SKILLED NURSING FACILITY SERVICES. (a) IN GENERAL. —Section 1888 (42 U.S.C. 1395yy) is amended by adding at the end the following new subsection: " (e) PROSPECTIVE PAYMENT.— "(1) PAYMENT PROVISION.— Notwithstanding any other provision of this title, subject to paragraph (7), the amount of the payment for all costs (as defined in paragraph (2)(B)) of covered skilled nursing facility services (as defined in paragraph (2)(A)) for each day of such services furnished— "(A) in a cost reporting period during the transition period (as defined in paragraph (2)(E)), is equal to the sum of—

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