Page:United States Statutes at Large Volume 86.djvu/1453

 86 STAT. ]

1411

PUBLIC LAW 92-603-OCT. 30, 1972

accordance with methods and standards which shall be developed by the State and reviewed and approved by the Secretary and (after notice of approval by the Secretary) included in the plan, except that the reasonable cost of any such services as determined under such methods and standards shall not exceed the amount which would be determined under section 1861(v) as the reasonable cost of such services for purposes of title X VIII; ". (b) Section 505(a)(6) of such Act is amended to read as follows: "(6) provides for payment of the reasonable cost of inpatient hospital services provided under the plan, as determined in accordance with methods and standards which shall be developed by the State and included in the plan, except that the reasonable cost of any such services as determined under such methods and standards shall not exceed the amount which would be determined under section 1861(v) as the reasonable cost of such services for purposes of title X VIII; ". (c) The amendments made by this section shall be effective July 1, 1972 (or earlier if the State plan so provides).

42 USC 1395X. 42 USC 1395. 42 USC 705.

Effective date.

A M O U N T OF P A Y M E N T S W H E R E CUSTOMARY CHARGES FOR SERVICES F U R N I S H E D ARE LESS T H A N REASONABLE COST

SEC. 233. (a) Section 1814(b) of the Social Security Act is amended to read as follows:

79 Stat. 294. 42 USC 1395f.

"Amount Paid to Providers " (b) The amount paid to any provider of services with respect to services for which payment may be made under this part shall, subject to the provisions of section 1813, be— "(1) the lesser of (A) the reasonable cost of such services, as determined under section 1861(v), or (B) the customary charges with respect to such services; or "(2) if such services are furnished by a public provider of services free of charge or at nominal charges to the public, the amount determined on the basis of those items (specified in regulations prescribed by the Secretary) included in the determination of such reasonable cost which the Secretary finds will provide fair compensation to such provider for such services." (b) Section 1833(a)(2) of such Act is amended to read as follows: "(2) in the case of services described in section 1832(a)(2)— 80 percent of— " (A) the lesser of (i) the reasonable cost of such services, as determined under section 1861(v), or (ii) the customary charges with respect to such services; or " (B) if such services are furnished by a public provider of services free of charge or at nominal charges to the public, the amount determined in accordance with section 1814(b)(2)." (c) Section 1903(i) of such Act (as added by section 224(c) and amended by section 229(c) of this Act) is further amended by striking out the period at the end of paragraph (2) and inserting in lieu thereof "; or", and by adding after paragraph (2) the following new paragraph: "(3) with respect to any amount expended for inpatient hospital services furnished under the plan to the extent that such amount exceeds the hospital's customary charges with respect to

42 USC 1395e. 42 USC 1395x.

79 Stat. 302. 42 USC 1395Z. 42 USC 1395k.

Supra.

Ante, 1410.

p p. 1395,

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