II 109th CONGRESS 2d Session S. 2819 IN THE SENATE OF THE UNITED STATES May 17, 2006 Mr. Coleman (for himself and Mr. Durbin) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend part C of title XVIII of the Social Security Act to provide for a minimum payment rate by Medicare Advantage organizations for services furnished by a critical access hospital and a rural health clinic under the Medicare program.

1.

Short title

This Act may be cited as the Rural Health Services Preservation Act of 2006.

2.

Minimum payment rate by Medicare Advantage organizations for services furnished by a critical access hospital and a rural health clinic

(a)

In general

Section 1857(e) of the Social Security Act (42 U.S.C. 1395w–27(e)) is amended by adding at the end the following: (4)

Minimum payment rate for services furnished by a critical access hospital and a rural health clinic

A contract under this section between an MA organization and the Secretary for the offering of an MA plan shall require the organization to provide for a payment rate under the plan for inpatient and outpatient critical access hospital services and rural health clinic services furnished to enrollees of the plan and for extended care services furnished by a critical access hospital under an agreement entered into under section 1883 to such enrollees (whether or not the services are furnished pursuant to an agreement between such organization and a critical access hospital or a rural health clinic) that is not less than— (A)the applicable payment rate established under part A or part B (which includes the payment of an interim rate and a subsequent cost reconciliation) with respect to the critical access hospital for such inpatient, outpatient, and extended care services or the rural health clinic for such rural health clinic services; or (B)if the critical access hospital or the rural health clinic determines appropriate, 103 percent of the applicable interim payment rate established under part A or part B with respect to the critical access hospital for such inpatient, outpatient, and extended care services or the rural health clinic for such rural health clinic services. . (b)

Effective date

The amendments made by this section shall apply to Medicare Advantage contract years beginning on or after January 1, 2007.