Page:United States Statutes at Large Volume 99 Part 1.djvu/1109

 PUBLIC LAW 99-177—DEC. 12, 1985

99 STAT. 1087

reduction or sequestration; except that Federal payments made to a State as reimbursement of administrative costs incurred by such State under or in connection with the unemployment compensation programs specified in subsection (h)(1) shall be subject to reduction or sequestration under this part notwithstanding the exemption otherwise granted to such programs under that subsection. (c) EFFECT OF ORDERS ON THE GUARANTEED STUDENT LOAN PROGRAM.—(1) Any reductions which are required to be achieved from the student loan programs operated pursuant to part B of title IV of the Higher Education Act of 1965, as a consequence of an order issued pursuant to section 252, shall be achieved only from loans described in paragraphs (2) and (3) by the application of the measures described in such paragraphs. (2) For any loan made during the period beginning on the date that an order issued under section 252 takes effect with respect to a fiscal year and ending at the close of such fiscal year, the rate used in computing the special allowance payment pursuant to section 438(b)(2)(A)(iii) of such Act for each of the first four special allowance payments for such loan shall be adjusted by reducing such rate by the lesser of— (A) 0.40 percent, or (B) the percentage by which the rate specified in such section exceeds 3 percent. (3) For any loan made during the period beginning on the date that an order issued under section 252 takes effect with respect to a fiscal year and ending at the close of such fiscal year, the origination fee which is authorized to be collected pursuant to section 438(c)(2) of such Act shall be increased by 0.50 percent.

Education. 20 USC 1071. ^"^^^ P- 1072.

20 USC 1087-1.

20 USC 1087-1.

(d) SPECIAL RULES FOR MEDICARE PROGRAM.— (1) MAXIMUM PERCENTAGE REDUCTION IN INDIVIDUAL PAYMENT

AMOUNTS.—The maximum permissible reduction for the health insurance programs under title XVIII of the Social Security Act 42 USC 1395. for any fiscal year, pursuant to an order issued under section 252, consists only of a reduction of— Ante, p. 1072. (A) 1 percent in the case of fiscal year 1986, and (B) 2 percent in the case of any subsequent fiscal year, in each separate payment amount otherwise made for a covered service under those programs without regard to this part. (2) TIMING OF APPLICATION OF REDUCTIONS.—

(A) IN GENERAL.—Except as provided in subparagraph (B), if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for services furnished during the effective period of the order. For purposes of the previous sentence, in the case of inpatient services furnished for an individual, the services shall be considered to be furnished on the date of the individual's discharge from the inpatient facility. (B) PAYMENT ON THE BASIS OF COST REPORTING PERIODS.—

In the case in which payment for services of a provider of services is made under title XVIII of the Social Security Act 42 USC 1395. on a basis relating to the reasonable cost incurred for the services during a cost reporting period of the provider, if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for costs for such services incurred at

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