To increase Medicare payments for home health services furnished in a rural area.

1. Adds SEC. __. INCREASE IN MEDICARE PAYMENT FOR CERTAIN HOME HEALTH SERVICES at the appropriate place in subtitle C of title IV

   Adds a section

   Inserted: SEC. __. INCREASE IN MEDICARE PAYMENT FOR CERTAIN HOME HEALTH SERVICES.

   Inserted: (a) In General.--Section 1895 of the Social Security Act (42 U.S.C. 1395fff) is amended by adding at the end the following:

   Inserted: "(f) Increase in Payment for Services Furnished in a Rural Area.--

   Inserted: "(1) In general.--In the case of home health services furnished in a rural area (as defined in section 1886(d)(2)(D)) on or after October 1, 2003 and before October 1, 2006, the Secretary shall increase the payment amount otherwise made under this section for such services by 10 percent.

   Inserted: "(2) Waiver of budget neutrality.--The Secretary shall not reduce the standard prospective payment amount (or amounts) under this section applicable to home health services furnished during any period to offset the increase in payments resulting from the application of paragraph (1).".

   Inserted: (b) Payment Adjustment.--Section 1895(b)(5) of the Social Security Act (42 U.S. C. 1395fff(b)(5)) is amended by adding at the end the following:"Notwithstanding this paragraph, the total amount of the additional payments or payment adjustments made under this paragraph may not exceed, with respect to fiscal year 2004, 3 percent, and, with respect to fiscal years 2005 and 2006, 4 percent, of the total payments projected or estimated to be made based on the prospective payment system under this subsection in the year involved.".

   Inserted: (c) Effective Date.--The amendments made by this section shall apply to services furnished on or after October 1, 2003.

   The amendment doesn't say where this goes; the clerk decides.

   Original wording

   At the appropriate place in subtitle C of title IV, insert the following:

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As printed