Page:United States Statutes at Large Volume 96 Part 1.djvu/381

 PUBLIC LAW 97-248—SEPT. 3, 1982

96 STAT. 339

payable under the contract by the provider for that cost is determined on the basis of a percentage (or other proportion) of the provider's charges, revenues, or claim for reimbursement. "(2) Paragraph (1) shall not apply— "(A) to services furnished by a physician and described in subsection (a)(1)(B) and covered by regulations in effect under subsection (a), and "(B) under regulations established by the Secretary, where the amount involved under the percentage contract is reasonable and the contract— "(i) is a customary commercial business practice, or "(ii) provides incentives for the efficient and economical operation of the provider of services.". (b)(1) Section 1861(v)(l)(H)(iii) of such Act is amended by striking 42 USC 1395x., out "(I)" and by striking out ", or (II)" and all that follows through "furnished by the agency". (2) Section 1861(v)(7)(C) of such Act, as added by section 108(b)(2) of this subtitle, is further amended by inserting "and for payments Ante, p. 338. under certain percentage arrangements" after "services". (c)(1) The amendments made by this section shall become effective Effective date. on the date of the enactment of this Act, except that section 42 USC 1395XX note. 1887(b)(1) of the Social Security Act shall not apply before October 1, Ante, p. 338. 1982, to services furnished by a physician and described in section 1887(a)(1)(B) of such Act. (2) In the case of a contract with a provider of services entered into prior to the date of the enactment of this Act, the amendment made by subsection (a) shall apply to payments under such contract (A) 30 days after the first date (after such date of enactment) the provider of services may unilaterally terminate the contract, or (B) one year after the date of the enactment of this Act, whichever is earlier. (3) The amendment made by subsection (b)(1) shall not apply to 42 USC 1395x contracts entered into before the date of the enactment of this Act. note. ELIMINATION OF LESSER-OF-COST-OR-CHARGE PROVISION

SEC. 110. Section 1886 of the Social Security Act, as added by Ante, p. 331. section 101(a)(1) of this subtitle, is amended by adding at the end the following new subsection: "(d)(1) The lesser-of-cost-or-charges provisions (described in paragraph (2)) will not apply in the case of services provided by a class of provider of services if the Secretary determines and certifies to Congress that the failure of such provisions to apply to the services provided by that class of providers will not result in any increase in the amount of payments made for those services under this title. Such change will take effect with respect to services furnished, or cost reporting periods of providers, on or after such date as the Secretary shall provide in the certification. Such change for a class of provider shall be discontinued if the Secretary determines and notifies Congress that such change has resulted in an increase in the amount of payments made under this title for services provided by that class of provider. "(2) The lesser-of-cost-or-charges provisions referred to in paragraph (1) are as follows: "(A) Clause (B) of paragraph (1) and paragraph (2) of section 1814(b). 42 USC 1395f.

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