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<bill bill-stage="Introduced-in-Senate" dms-id="A1" public-private="public">
	<form>
		<distribution-code display="yes">II</distribution-code>
		<congress>110th CONGRESS</congress>
		<session>2d Session</session>
		<legis-num>S. 2786</legis-num>
		<current-chamber>IN THE SENATE OF THE UNITED STATES</current-chamber>
		<action>
			<action-date date="20080313">March 13, 2008</action-date>
			<action-desc><sponsor name-id="S153">Mr. Grassley</sponsor> introduced
			 the following bill; which was read twice and referred to the
			 <committee-name committee-id="SSFI00">Committee on
			 Finance</committee-name></action-desc>
		</action>
		<legis-type>A BILL</legis-type>
		<official-title>To amend title XVIII of the Social Security Act to
		  improve access to health care under the Medicare program for beneficiaries
		  residing in rural areas.</official-title>
	</form>
	<legis-body>
		<section id="S1" section-type="section-one"><enum>1.</enum><header>Short
			 title; table of contents</header>
			<subsection id="idD9918817684C4D09B9E1B76F9322527A"><enum>(a)</enum><header>Short
			 title</header><text display-inline="yes-display-inline">This Act may be cited
			 as the <quote><short-title>Medicare Rural Health Access
			 Improvement Act of 2008</short-title></quote>.</text>
			</subsection><subsection id="idD76E12A80EA44CB484758EF7C5AEF88D"><enum>(b)</enum><header>Table of
			 contents</header><text>The table of contents of this Act is as follows:</text>
				<toc>
					<toc-entry idref="S1" level="section">Sec. 1. Short title; table of
				contents.</toc-entry>
					<toc-entry idref="id08DE91754CC54151BC7E833DCA5C753C" level="title">TITLE I—Provisions relating to Medicare part A</toc-entry>
					<toc-entry idref="idABCEAF319D2648B48D00A50A3F1B0864" level="section">Sec. 101. Extension of Medicare FLEX grants.</toc-entry>
					<toc-entry idref="id2E443E14518540369737D6AEB6493526" level="section">Sec. 102. Improvements to the medicare-dependent hospital (MDH)
				program.</toc-entry>
					<toc-entry idref="H08531D2582B24ACE9D2D97522B750500" level="section">Sec. 103. Rebasing for sole community hospitals.</toc-entry>
					<toc-entry idref="id83970EAD84F6467CAE0081E9433E388E" level="section">Sec. 104. Temporary improvements to the Medicare inpatient
				hospital payment adjustment for low-volume hospitals.</toc-entry>
					<toc-entry idref="HF3C2F58790054634B604406152583211" level="section">Sec. 105. Temporary elimination of the DSH adjustment
				cap.</toc-entry>
					<toc-entry idref="idB11784BEA55E4F3BA3C6B43D2E19A77D" level="title">TITLE II—Provisions relating to Medicare part B</toc-entry>
					<toc-entry idref="HDD1E73D2D39C4E389B65CE6EA0BDB058" level="section">Sec. 201. Extension and expansion of the Medicare hold harmless
				provision under the prospective payment system for hospital outpatient
				department (HOPD) services for certain hospitals.</toc-entry>
					<toc-entry idref="ID48D66CE8B9974B56BE58F5213CE23819" level="section">Sec. 202. Treatment of rural sole community hospitals and
				medicare dependent, small rural hospitals under the prospective payment system
				for hospital outpatient department (HOPD) services.</toc-entry>
					<toc-entry idref="idB5003EF8197C44FFAA631C9EBF91F396" level="section">Sec. 203. Permanent treatment of Medicare reasonable costs
				payments for certain clinical diagnostic laboratory tests furnished to hospital
				patients in certain rural areas.</toc-entry>
					<toc-entry idref="idBD6BFA05622F42FDB1B679CFBA41AD8D" level="section">Sec. 204. Clarification of payment for clinical laboratory
				tests furnished by critical access hospitals.</toc-entry>
					<toc-entry idref="HA9B31C9F1B9E41AD8C930600008CD58F" level="section">Sec. 205. Extension of Medicare incentive payment program for
				physician scarcity areas.</toc-entry>
					<toc-entry idref="id26E2A80811F94DDDA4BA101B7AFA23F3" level="section">Sec. 206. Revisions to the work geographic adjustment under the
				Medicare physician fee schedule.</toc-entry>
					<toc-entry idref="idC66C239E53DF47EBAEB59EA6ECB51C86" level="section">Sec. 207. Revisions to the practice expense geographic
				adjustment under the Medicare physician fee schedule.</toc-entry>
					<toc-entry idref="IDB4F6FB08B8FB4763AF28883C6819D5F2" level="section">Sec. 208. Extension of treatment of certain physician pathology
				services under Medicare.</toc-entry>
					<toc-entry idref="id803F1D8150C447B0ABEBF9AC12A9E2AB" level="section">Sec. 209. Extension of increased Medicare payments for rural
				ground ambulance services.</toc-entry>
					<toc-entry idref="id8BD58A5F325B418983FF73C74B6DC7AD" level="section">Sec. 210. Adding hospital-based renal dialysis centers
				(including satellites) as originating sites for payment of telehealth
				services.</toc-entry>
					<toc-entry idref="id0D3DBFF1435D4F00BE8BFEBE231ED003" level="section">Sec. 211. Adding skilled nursing facilities as originating
				sites for payment of telehealth services.</toc-entry>
					<toc-entry idref="ID0EB8454AF7F84B5EB465C307156AF031" level="section">Sec. 212. Rural health clinic improvements.</toc-entry>
					<toc-entry idref="id5A6EA7E761824456849FDC761F74EFA6" level="section">Sec. 213. Exemption for suppliers in small MSAs and rural
				areas.</toc-entry>
					<toc-entry idref="id75B3CE00BCB8424F9F63281564862E12" level="section">Sec. 214. Permitting physician assistants to order
				post-hospital extended care services and to provide for recognition of
				attending physician assistants as attending physicians to serve hospice
				patients.</toc-entry>
				</toc>
			</subsection></section><title id="id08DE91754CC54151BC7E833DCA5C753C"><enum>I</enum><header>Provisions
			 relating to Medicare part A</header>
			<section commented="no" display-inline="no-display-inline" id="idABCEAF319D2648B48D00A50A3F1B0864"><enum>101.</enum><header>Extension of
			 Medicare FLEX grants</header><text display-inline="no-display-inline">Section
			 1820(j) of the Social Security Act (42 U.S.C. 1395i–4(j)) is amended by
			 striking <quote>2008</quote> and inserting <quote>2009</quote>.</text>
			</section><section id="id2E443E14518540369737D6AEB6493526"><enum>102.</enum><header>Improvements
			 to the medicare-dependent hospital (MDH) program</header>
				<subsection id="id3AB4EACAE83149FAB75FD99313C98C56"><enum>(a)</enum><header>Use of non-wage
			 adjusted PPS rate</header><text>Section 1886(d)(5)(G) of the Social Security
			 Act (42 U.S.C. 1395ww(d)(5)(G)) is amended by adding at the end the following
			 new clause:</text>
					<quoted-block display-inline="no-display-inline" id="id4AE5D6F107BC4FE0B7AD8C68BC32B518" style="OLC">
						<clause id="id1778CC8B07FB40588BEB143CD65ABD06" indent="up3"><enum>(v)</enum><text>In the case of discharges occurring
				on or after October 1, 2008, and before October 1, 2011, in determining the
				amount under paragraph (1)(A)(iii) for purposes of clauses (i) and (ii)(II),
				such amount shall, if it results in greater payments to the hospital, be
				determined without regard to any adjustment for different area wage levels
				under paragraph
				(3)(E).</text>
						</clause><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="id8625704EDF574FB9B47F2958551A954F"><enum>(b)</enum><header>Enhanced
			 payment for amount by which the target exceeds the PPS
			 rate</header><text>Section 1886(d)(5)(G)(ii)(II) of the Social Security Act (42
			 U.S.C. 1395ww(d)(5)(G)(ii)(II)) is amended by inserting <quote>and before
			 October 1, 2008, or 85 percent in the case of discharges occurring on or after
			 October 1, 2008, and before October 1, 2011</quote> after <quote>October 1,
			 2006</quote>.</text>
				</subsection></section><section id="H08531D2582B24ACE9D2D97522B750500"><enum>103.</enum><header>Rebasing for
			 sole community hospitals</header>
				<subsection id="HFEBA6498A63D4D0F97879466406158E3"><enum>(a)</enum><header>Rebasing
			 permitted</header><text display-inline="yes-display-inline">Section 1886(b)(3)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C. 1395ww(b)(3)</external-xref>) is
			 amended by adding at the end the following new subparagraph:</text>
					<quoted-block display-inline="no-display-inline" id="H6DF81C7122EF42EAB4B644DC98AB2200" other-style="archaic" style="other">
						<subparagraph id="H899B696BF3E3422C9F350068013CAD36" indent="up2"><enum>(L)</enum><clause commented="no" display-inline="yes-display-inline" id="H129A9CAC833342A88C2B15E3CE56669E"><enum>(i)</enum><text display-inline="yes-display-inline">For cost reporting periods beginning on or
				after October 1, 2008, in the case of a sole community hospital there shall be
				substituted for the amount otherwise determined under subsection (d)(5)(D)(i)
				of this section, if such substitution results in a greater amount of payment
				under this section for the hospital, the subparagraph (L) rebased target
				amount.</text>
							</clause><clause id="HAFF305ABFC6840999C2CAC12E288A947" indent="up1"><enum>(ii)</enum><text display-inline="yes-display-inline">For purposes of this subparagraph, the term
				<quote>subparagraph (L) rebased target amount</quote> has the meaning given the
				term <term>target amount</term> in subparagraph (C), except that—</text>
								<subclause id="H7CD35B03DD0F4003974E952B18E6AA73"><enum>(I)</enum><text display-inline="yes-display-inline">there shall be substituted for the base
				cost reporting period the 12-month cost reporting period beginning during
				fiscal year 2002;</text>
								</subclause><subclause id="H306DDD1EAF314EFEAB966D8E4DE2ED74"><enum>(II)</enum><text display-inline="yes-display-inline">any reference in subparagraph (C)(i) to the
				<quote>first cost reporting period</quote> described in such subparagraph is
				deemed a reference to the first cost reporting period beginning on or after
				October 1, 2008; and</text>
								</subclause><subclause id="HEC6BD58690984C03B5185FDCB7CBBD28"><enum>(III)</enum><text display-inline="yes-display-inline">the applicable percentage increase shall
				only be applied under subparagraph (C)(iv) for discharges occurring in fiscal
				years beginning with fiscal year
				2009.</text>
								</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="H16ED194182CE47B28DCC0035AD22C641"><enum>(b)</enum><header>Conforming
			 amendments</header><text>Section 1886(b)(3) of the Social Security Act
			 (<external-xref legal-doc="usc" parsable-cite="usc/42/1395ww">42 U.S.C.
			 1395ww(b)(3)</external-xref>) is amended—</text>
					<paragraph id="HD6893E471CF349BAA704FFE4524EA7D"><enum>(1)</enum><text>in
			 subparagraph (C), in the matter preceding clause (i), by striking
			 <quote>subparagraph (I)</quote> and inserting <quote>subparagraphs (I) and
			 (L)</quote>; and</text>
					</paragraph><paragraph id="HEFE5C991354A4E439FC96C1EEE5C44AE"><enum>(2)</enum><text>in subparagraph
			 (I)(i), in the matter preceding subclause (I), by striking <quote>For</quote>
			 and inserting <quote>Subject to subparagraph (L), for</quote>.</text>
					</paragraph></subsection></section><section id="id83970EAD84F6467CAE0081E9433E388E"><enum>104.</enum><header>Temporary
			 improvements to the Medicare inpatient hospital payment adjustment for
			 low-volume hospitals</header><text display-inline="no-display-inline">Section
			 1886(d)(12) of the <act-name parsable-cite="SSA">Social Security Act</act-name>
			 (42 U.S.C. 1395ww(d)(12)) is amended—</text>
				<paragraph id="idC4194CE394544D2594E1D0E260AEE3E2"><enum>(1)</enum><text>in subparagraph
			 (A), by inserting <quote>or (D)</quote> after <quote>subparagraph
			 (B)</quote>;</text>
				</paragraph><paragraph id="idB8BF98E9EF714B67BA42D036060909DC"><enum>(2)</enum><text>in subparagraph
			 (B), by striking <quote>The Secretary</quote> and inserting <quote>For
			 discharges occurring in fiscal years 2005 through 2008 and for discharges
			 occurring in fiscal year 2011 and subsequent fiscal years, the
			 Secretary</quote>;</text>
				</paragraph><paragraph id="id08D3896BE6744CD7AB2A87B831EF96DF"><enum>(3)</enum><text display-inline="yes-display-inline">in subparagraph (C)(i)—</text>
					<subparagraph id="id5016970EEDF04CF59BF687ED7647A09C"><enum>(A)</enum><text>by inserting
			 <quote>(or, with respect to fiscal years 2009 and 2010, 15 road miles)</quote>
			 after <quote>25 road miles</quote>; and</text>
					</subparagraph><subparagraph id="id4393CE41CB824E448F6AAE575E000EA5"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>(or, with respect to
			 fiscal years 2009 and 2010, 2,000 discharges of individuals entitled to, or
			 enrolled for, benefits under part A)</quote> after <quote>800
			 discharges</quote>; and</text>
					</subparagraph></paragraph><paragraph id="id4135756AAA1A45FA80451A861E61DDC4"><enum>(4)</enum><text>by adding at the
			 end the following new subparagraph:</text>
					<quoted-block display-inline="no-display-inline" id="id0121F58BC213495F9C204A62263DCD2F" style="OLC">
						<subparagraph id="id087B5F2FC304422EB67E8CF45D1E2B1C"><enum>(D)</enum><header>Temporary
				applicable percentage increase</header><text>For discharges occurring in fiscal
				years 2009 or 2010, the Secretary shall determine an applicable percentage
				increase for purposes of subparagraph (A) using a linear sliding scale ranging
				from 25 percent for low-volume hospitals with fewer than an appropriate number
				(as determined by the Secretary) of discharges of individuals entitled to, or
				enrolled for, benefits under part A in the fiscal year to 0 percent for
				low-volume hospitals with greater than 2,000 discharges of such individuals in
				the fiscal
				year.</text>
						</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section><section id="HF3C2F58790054634B604406152583211"><enum>105.</enum><header>Temporary
			 elimination of the DSH adjustment cap</header><text display-inline="no-display-inline">Section 1886(d)(5)(F)(xiv)(II) of the Social
			 Security Act (42 U.S.C. 1395ww(d)(5)(F)(xiv)(II)) is amended by adding at the
			 end the following new sentence: <quote>The preceding sentence shall not apply
			 to any hospital in the case of discharges occurring on or after October 1,
			 2008, and before October 1, 2010.</quote>.</text>
			</section></title><title id="idB11784BEA55E4F3BA3C6B43D2E19A77D"><enum>II</enum><header>Provisions
			 relating to Medicare part B</header>
			<section commented="no" display-inline="no-display-inline" id="HDD1E73D2D39C4E389B65CE6EA0BDB058"><enum>201.</enum><header>Extension and
			 expansion of the Medicare hold harmless provision under the prospective payment
			 system for hospital outpatient department (HOPD) services for certain
			 hospitals</header><text display-inline="no-display-inline">Section
			 1833(t)(7)(D)(i) of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)(7)(D)</external-xref>(i)) is
			 amended—</text>
				<paragraph commented="no" display-inline="no-display-inline" id="idDCA79BA45CD346DF991BFBB34C005A6C"><enum>(1)</enum><text display-inline="yes-display-inline">in subclause (II)—</text>
					<subparagraph commented="no" display-inline="no-display-inline" id="idB27F381E95924BF4AD2FD6F7B8C76C3D"><enum>(A)</enum><text>in the first
			 sentence, by striking <quote>2009</quote> and inserting <quote>2010</quote>;
			 and</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id235C2EBB85A041AA85B24CC9CEE9ACCC"><enum>(B)</enum><text display-inline="yes-display-inline">by striking the second sentence and
			 inserting the following new sentence: <quote>For purposes of the preceding
			 sentence, the applicable percentage shall be 95 percent with respect to covered
			 OPD services furnished in 2006, 90 percent with respect to such services
			 furnished in 2007, 85 percent with respect to such services furnished in 2008,
			 100 percent with respect to such services furnished in 2009, and 100 percent
			 with respect to such services furnished in 2010.</quote>; and</text>
					</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id542FD63A7AC64C9C92335A1EF0FEEA79"><enum>(2)</enum><text>by adding at the
			 end the following new subclause:</text>
					<quoted-block display-inline="no-display-inline" id="idBA2299F4EBAE4096B84D5D1419002E08" style="OLC">
						<subclause commented="no" display-inline="no-display-inline" id="H88468B0D56F440408CF5C3054BBDDDA" indent="up1"><enum>(III)</enum><text display-inline="yes-display-inline">In the case of a sole community hospital
				(as defined in section 1886(d)(5)(D)(iii)), for covered OPD services furnished
				on or after January 1, 2009, and before January 1, 2011, for which the PPS
				amount is less than the pre-BBA amount, the amount of payment under this
				subsection shall be increased by 100 percent of the amount of such
				difference.</text>
						</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section><section commented="no" id="ID48D66CE8B9974B56BE58F5213CE23819"><enum>202.</enum><header>Treatment of
			 rural sole community hospitals and medicare dependent, small rural hospitals
			 under the prospective payment system for hospital outpatient department (HOPD)
			 services</header><text display-inline="no-display-inline">Section 1833(t)(13)
			 of the Social Security Act (<external-xref legal-doc="usc" parsable-cite="usc/42/1395l">42 U.S.C. 1395l(t)(13)</external-xref>) is
			 amended—</text>
				<paragraph commented="no" id="id28031A8E3E3D4566B5776F66B25E3D1D"><enum>(1)</enum><text display-inline="yes-display-inline">in the heading, by striking
			 <quote><header-in-text level="paragraph" style="OLC">Authorization of
			 adjustment</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Adjustment</header-in-text></quote>;</text>
				</paragraph><paragraph commented="no" id="id1BAC7B5ACEC142BA93B6F0BFA6368CA7"><enum>(2)</enum><text>in subparagraph
			 (B)—</text>
					<subparagraph commented="no" id="id770B54CD9C224DA19BF49640BE8C488D"><enum>(A)</enum><text>in the heading,
			 by inserting <quote><header-in-text level="subparagraph" style="OLC">for 2006,
			 2007, and 2008</header-in-text></quote> after <quote><header-in-text level="subparagraph" style="OLC">adjustment</header-in-text></quote>;
			 and</text>
					</subparagraph><subparagraph commented="no" id="id5610C926E587446EA417AD4D97F69BE2"><enum>(B)</enum><text>by adding at the
			 end the following new sentence: <quote>Such authority shall apply with respect
			 to services furnished in 2006, 2007, or 2008.</quote>; and</text>
					</subparagraph></paragraph><paragraph commented="no" id="id288929EB0B474B8E99BB25E9DFCC93A2"><enum>(3)</enum><text>by adding at the
			 end the following new subparagraph:</text>
					<quoted-block display-inline="no-display-inline" id="idAD29A3B0C4E94FA98E535082331EFB61" style="OLC">
						<subparagraph commented="no" id="id425700AD61EF4EA3831A3CD39A04288F"><enum>(C)</enum><header>Adjustment for
				2009 and subsequent years for certain rural hospitals</header>
							<clause commented="no" id="id9EF5509B66184A31894AF62FFDF9467C"><enum>(i)</enum><header>Adjustment</header>
								<subclause commented="no" id="id7A8566CCA06C438BB715A8AB3FD2523E"><enum>(I)</enum><header>In
				general</header><text>Subject to clause (ii), in the case of covered OPD
				services furnished on or after January 1, 2009, by a sole community hospital
				(as defined in subparagraph (D)(iii) of section 1886(d)(5)) located in a rural
				area or a medicare-dependent, small rural hospital (as defined in subparagraph
				(G)(iv) of such section, the amount of payment that would otherwise be made for
				such service under this subsection shall be increased by an amount equal to 7.1
				percent of such amount. Such increase shall be applied before calculating
				outliers and coinsurance.</text>
								</subclause><subclause commented="no" id="id26FE2F1DFD07460F897E9B0E52C3EAF7"><enum>(II)</enum><header>Revision with
				notice and comment</header><text>In the case of covered OPD services furnished
				on or after January 1, 2010, the Secretary may revise the percent described in
				subclause (I) through the promulgation of a regulation.</text>
								</subclause></clause><clause commented="no" id="idEA20C1DE59684E81847375C2C937EF98"><enum>(ii)</enum><header>Not applicable
				to pass-through devices, drugs, and biologicals</header><text>The increase
				under clause (i) shall not apply to the payment for a device, drug, or
				biological described in clause (i), (ii), (iii), or (iv) of paragraph
				(6)(A).</text>
							</clause><clause commented="no" id="id72D3CB76C61544C889E5A32168ABFECC"><enum>(iii)</enum><header>Exemption
				from budget neutrality</header><text>The provisions of this subparagraph shall
				not be effected in a budget-neutral manner under this
				subsection.</text>
							</clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section><section id="idB5003EF8197C44FFAA631C9EBF91F396"><enum>203.</enum><header>Permanent
			 treatment of Medicare reasonable costs payments for certain clinical diagnostic
			 laboratory tests furnished to hospital patients in certain rural
			 areas</header><text display-inline="no-display-inline">Section 1833 of the
			 Social Security Act (42 U.S.C. 1395l) is amended by adding at the end the
			 following new subsection:</text>
				<quoted-block display-inline="no-display-inline" id="id570E539A5793478AB7003B41E639ADCC" style="OLC">
					<subsection id="idE4BC34736F004480B8044F816A26F648"><enum>(v)</enum><header>Reasonable
				costs payments for certain clinical diagnostic laboratory tests furnished to
				hospital patients in certain rural areas</header>
						<paragraph id="ID46A327CF697548488806B629AE7A561D"><enum>(1)</enum><header>In
				general</header><text>Notwithstanding subsections (a), (b), and (h) and section
				1834(d)(1), in the case of a clinical diagnostic laboratory test covered under
				this part that is furnished during a cost reporting period beginning on or
				after July 1, 2008, by a hospital with fewer than 50 beds that is located in a
				qualified rural area (identified under paragraph (12)(B)(iii) of section
				1834(l)) as part of outpatient services of the hospital, the amount of payment
				for such test shall be 100 percent of the reasonable costs of the hospital in
				furnishing such test.</text>
						</paragraph><paragraph id="ID5DB2867CBC8D4A21A6E9ECF7B1EBC160"><enum>(2)</enum><header>Provision as
				part of outpatient hospital services</header><text>For purposes of paragraph
				(1), in determining whether clinical diagnostic laboratory services are
				furnished as part of outpatient services of a hospital, the Secretary shall
				apply the same rules that are used to determine whether clinical diagnostic
				laboratory services are furnished as an outpatient critical access hospital
				service under section 1834(g)(4) (determined without regard to the amendments
				made by section 204 of the <short-title>Medicare Rural
				Health Access Improvement Act of 2008</short-title>).</text>
						</paragraph><paragraph id="ID8F34552F828E4AF08BC941B48BDF469A"><enum>(3)</enum><header>Reference</header><text>For
				the treatment of certain clinical diagnostic laboratory tests furnished prior
				to July 1, 2007, see section 416 of the Medicare Prescription Drug,
				Improvement, and Modernization Act of 2003, as extended by section 105 of
				division B of the Tax Relief and Health Care Act of 2006 and section 107 of the
				Medicare, Medicaid, and SCHIP Extension Act of
				2007.</text>
						</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
			</section><section id="idBD6BFA05622F42FDB1B679CFBA41AD8D"><enum>204.</enum><header>Clarification
			 of payment for clinical laboratory tests furnished by critical access
			 hospitals</header>
				<subsection id="IDACEA5FC2C6D043499DF60FC08154EB56"><enum>(a)</enum><header>In
			 general</header><text><external-xref legal-doc="act" parsable-cite="SSA/1834(g)(4)">Section 1834(g)(4)</external-xref> of the
			 <act-name parsable-cite="SSA">Social Security Act</act-name> (<external-xref legal-doc="usc" parsable-cite="usc/42/1395m(g)(4)">42 U.S.C.
			 1395m(g)(4)</external-xref>) is amended—</text>
					<paragraph id="IDB07589F68E134799801E119434BEDF65"><enum>(1)</enum><text>in the heading,
			 by striking <quote><header-in-text level="paragraph" style="OLC">no beneficiary
			 cost-sharing for</header-in-text></quote> and inserting <quote><header-in-text level="paragraph" style="OLC">treatment of</header-in-text></quote>; and</text>
					</paragraph><paragraph id="ID2EB4011E34D84FCABF2D6E15BB03E6EC"><enum>(2)</enum><text>by adding at the
			 end the following new sentence: <quote>For purposes of the preceding sentence
			 and section 1861(mm)(3), clinical diagnostic laboratory services furnished by a
			 critical access hospital shall be treated as being furnished as part of
			 outpatient critical access services without regard to whether the individual
			 with respect to whom such services are furnished is physically present in the
			 critical access hospital at the time the specimen is collected or was in a
			 skilled nursing facility or a clinic that is owned by, or co-located with, the
			 critical access hospital.</quote>.</text>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="ID06BE084B07864328AC0A877A09FEA541"><enum>(b)</enum><header>Effective
			 date</header><text>The amendments made by subsection (a) shall apply to
			 services furnished on or after January 1, 2009.</text>
				</subsection></section><section id="HA9B31C9F1B9E41AD8C930600008CD58F" section-type="subsequent-section"><enum>205.</enum><header>Extension of
			 Medicare incentive payment program for physician scarcity areas</header><text display-inline="no-display-inline">Section 1833(u) of the Social Security Act
			 (42 U.S.C. 1395l(u)), as amended by section 102 of the Medicare, Medicaid, and
			 SCHIP Extension Act of 2007 (Public Law 110–173), is amended—</text>
				<paragraph id="idBC23D2BFF2B047059A0922618DE041A5"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by striking <quote>before
			 July 1, 2008</quote> and inserting <quote>before January 1, 2010</quote>;
			 and</text>
				</paragraph><paragraph commented="no" id="id1FD1D9B22C7447FD8A475464F59887C4"><enum>(2)</enum><text>in paragraph
			 (4)(D), by striking <quote>before July 1, 2008</quote> and inserting
			 <quote>before January 1, 2010</quote>.</text>
				</paragraph></section><section id="id26E2A80811F94DDDA4BA101B7AFA23F3"><enum>206.</enum><header>Revisions to
			 the work geographic adjustment under the Medicare physician fee
			 schedule</header>
				<subsection id="H7C6BF9A6A0954ACFA38C097EE3AD5E5D"><enum>(a)</enum><header>Extension of
			 floor</header><text display-inline="yes-display-inline">Section 1848(e)(1)(E)
			 of the Social Security Act (42 U.S.C. 1395w–4(e)(1)(E)), as amended by section
			 103 of the Medicare, Medicaid, and SCHIP Extension Act of 2007 (Public Law
			 110–173), is amended by striking <quote>before July 1, 2008</quote> and
			 inserting <quote>before January 1, 2010</quote>.</text>
				</subsection><subsection id="id869A3696D54B48AB8791E69D781B6F2C"><enum>(b)</enum><header>Recognition of
			 equality of physician work in all geographic areas</header><text>Section
			 1848(e)(1) of the Social Security Act (42 U.S.C. 1395w–4(e)(1)) is
			 amended—</text>
					<paragraph id="id43ECA5E782FE474B88955BC708CB5971"><enum>(1)</enum><text>in subparagraph
			 (A), in the matter preceding clause (i), by striking <quote>subparagraphs
			 (B)</quote> through <quote>the Secretary</quote> and inserting <quote>the
			 succeeding provisions of this paragraph, the Secretary</quote>; and</text>
					</paragraph><paragraph id="idE924882145CF48B3A6C1ADC40B0B1DB7"><enum>(2)</enum><text>by inserting
			 after subparagraph (E) the following new subparagraph:</text>
						<quoted-block display-inline="no-display-inline" id="idFBF62E276DFD4A719C3677F41450F5F5" style="OLC">
							<subparagraph id="ID93bea3a940a9437f96abecb9e1a1d4e9"><enum>(F)</enum><header>Recognition of
				equality of physician work in all geographic areas</header><text>In recognition
				of the fact that the physician work for a service is the same in all geographic
				areas, and should be similarly valued under this title, for services furnished
				on or after January 1, 2010, the geographic index for physician work under
				subparagraph (A)(iii) shall be 1.0 in all fee schedule
				areas.</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection></section><section id="idC66C239E53DF47EBAEB59EA6ECB51C86"><enum>207.</enum><header>Revisions to
			 the practice expense geographic adjustment under the Medicare physician fee
			 schedule</header>
				<subsection id="ID4E01C786250145A6A3A6EC223B2DCA6F"><enum>(a)</enum><header>Establishment
			 of floor</header><text display-inline="yes-display-inline">Section 1848(e)(1)
			 of the Social Security Act (42 U.S.C. 1395w–4(e)(1)) is amended by adding at
			 the end the following new subparagraph:</text>
					<quoted-block id="IDB184BA3A55EA4E71968D3C776A6E979E" style="OLC">
						<subparagraph id="ID28E078A5E4D340E9840EE01E4409E1F1"><enum>(H)</enum><header>Floor at 1.0 on
				practice expense geographic index</header><text>After calculating the practice
				expense geographic index in subparagraph (A)(i), for purposes of payment for
				services furnished in 2009, the Secretary shall increase the practice expense
				geographic index to 1.0 for any locality for which such practice expense
				geographic index is less than
				1.0.</text>
						</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection id="id92D835E24E074C038CF54E31AA5CE142"><enum>(b)</enum><header>More
			 appropriate recognition of practice expense differences in employee wages and
			 office rents among geographic areas</header><text>Section 1848(e)(1) of the
			 Social Security Act (42 U.S.C. 1395w–4(e)(1)), as amended by subsection (a), is
			 amended by adding at the end the following new subparagraph:</text>
					<quoted-block display-inline="no-display-inline" id="id0FB85F99B7FE43F6B4ECEF508F349F79" style="OLC">
						<subparagraph id="IDf7955422d9564069a742c7ff1378121a"><enum>(I)</enum><header>More
				appropriate recognition of differences in employee wages and office rents among
				areas</header>
							<clause id="ID33efcaeca9604010bbcace7599058eb7"><enum>(i)</enum><header>In
				general</header><text>In recognition of the limitations on available data (as
				described in clause (ii)) for use as the employee wage and office rent proxies
				in the practice expense geographic index described in subparagraph (A)(i), and
				in order to more appropriately reflect differences among different fee schedule
				areas, for services furnished on or after January 1, 2010, such practice
				expense geographic index shall be an index which reflects
				<fraction>1/2</fraction> of the difference between the relative costs of
				employee wages and rents in each of the different fee schedule areas and the
				national average of such employee wages and rents.</text>
							</clause><clause id="IDcc52eef4919247978f58eda5c833bb3e"><enum>(ii)</enum><header>Limitations on
				available data</header><text>The limitations on available data described in
				this clause are the following:</text>
								<subclause id="ID2a65ce7ca5d6476d8cad8f15ffba9eac"><enum>(I)</enum><text>The need to use
				proxy data to reflect differences in employee wages and rents among
				areas.</text>
								</subclause><subclause id="ID38e11807638c4218befbe9f89634fb0e"><enum>(II)</enum><text>Wages for some
				categories of employees being determined in national markets.</text>
								</subclause><subclause id="ID9978b7e5c7d54db0a6e9d4af2507761a"><enum>(III)</enum><text>Physicians
				having to compete for some employees in market areas that cross fee schedule
				areas.</text>
								</subclause><subclause id="ID0806b2d2b9924e3fae287037fa3cf6b2"><enum>(IV)</enum><text>Physicians in
				rural areas frequently having to locate their offices close to urban areas and
				competing with urban rent
				markets.</text>
								</subclause></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection></section><section id="IDB4F6FB08B8FB4763AF28883C6819D5F2"><enum>208.</enum><header>Extension of
			 treatment of certain physician pathology services under Medicare</header><text display-inline="no-display-inline">Section 542(c) of the Medicare, Medicaid,
			 and SCHIP Benefits Improvement and Protection Act of 2000 (as enacted into law
			 by section 1(a)(6) of Public Law 106–554), as amended by section 732 of the
			 Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (42
			 U.S.C. 1395w–4 note), section 104 of division B of the Tax Relief and Health
			 Care Act of 2006 (42 U.S.C. 1395w–4 note), and section 104 of the Medicare,
			 Medicaid, and SCHIP Extension Act of 2007 (Public Law 110–173), is amended by
			 striking <quote>2007, and the first 6 months of 2008</quote> and inserting
			 <quote>2007, 2008, and 2009</quote>.</text>
			</section><section id="id803F1D8150C447B0ABEBF9AC12A9E2AB"><enum>209.</enum><header>Extension of
			 increased Medicare payments for rural ground ambulance services</header><text display-inline="no-display-inline">Section 1834(l)(13) of the Social Security
			 Act (42 U.S.C. 1395m(l)(13)) is amended—</text>
				<paragraph id="id9CDBE9B40ACE43AE8E8B384C9E095002"><enum>(1)</enum><text>in subparagraph
			 (A), in the heading, by striking <quote><header-in-text level="subparagraph" style="OLC">In general</header-in-text></quote> and inserting
			 <quote><header-in-text level="subparagraph" style="OLC">For the second half of
			 2004 and for 2005 and 2006</header-in-text></quote>;</text>
				</paragraph><paragraph id="ID5e64b32637c746c9a6d133e88da28504"><enum>(2)</enum><text>by redesignating
			 subparagraph (B) as subparagraph (C);</text>
				</paragraph><paragraph id="ID47ac20878e484b75b6f4fae4ed27d84b"><enum>(3)</enum><text>by inserting the
			 following after subparagraph (A):</text>
					<quoted-block display-inline="no-display-inline" id="id0FF68EF5E24C48A2A259CB428F9CCE98" style="OLC">
						<subparagraph id="ID0c781eac93c141868d7d4c6044c165f4"><enum>(B)</enum><header>For the second
				half of 2008 and for 2009 with respect to rural areas</header><text>After
				computing the rates with respect to ground ambulance services under the other
				applicable provisions of this subsection, in the case of such services
				furnished on or after July 1, 2008, and before January 1, 2010, for which the
				transportation originates in a rural area described in paragraph (9) or in a
				rural census tract described in such paragraph, the fee schedule established
				under this section shall provide that the rate for the service otherwise
				established, after application of any increase under paragraphs (11) and (12),
				shall be increased by 5 percent.</text>
						</subparagraph><after-quoted-block>;
				and</after-quoted-block></quoted-block>
				</paragraph><paragraph id="ID8b2e74d790a2458a9ca237e1fd36bdc5"><enum>(4)</enum><text>in subparagraph
			 (C), as redesignated by paragraph (2)—</text>
					<subparagraph id="id11B0CA76AAC5462DA8319807D7A26924"><enum>(A)</enum><text>in the heading,
			 by striking <quote><header-in-text level="subparagraph" style="OLC">Application
			 of increased payments after 2006</header-in-text></quote> and inserting
			 <quote><header-in-text level="subparagraph" style="OLC">No effect on subsequent
			 periods</header-in-text></quote>; and</text>
					</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id38CE085AAEE049F1AE277E54F2136E1B"><enum>(B)</enum><text>by adding at the
			 end the following new sentence: <quote>The increased payments under
			 subparagraph (B) shall not be taken into account in calculating payments for
			 services furnished after the period specified in such
			 subparagraph.</quote>.</text>
					</subparagraph></paragraph></section><section id="id8BD58A5F325B418983FF73C74B6DC7AD"><enum>210.</enum><header>Adding
			 hospital-based renal dialysis centers (including satellites) as originating
			 sites for payment of telehealth services</header>
				<subsection id="idA07B6C81DFAD44EEA4540FDE9B3DB090"><enum>(a)</enum><header>In
			 general</header><text>Section 1834(m)(4)(C)(ii) of the
			 <act-name parsable-cite="SSA">Social Security Act</act-name> (42 U.S.C.
			 1395m(m)(4)(C)(ii)) is amended by adding at the end the following new
			 subclause:</text>
					<quoted-block act-name="Social Security Act" id="ID291B3149F7EC438D973F9CDB46099519">
						<subclause id="ID4457B55E2BDF4903853ADF7E975C0285"><enum>(VI)</enum><text>A hospital-based
				or critical access hospital-based renal dialysis center (including
				satellites).</text>
						</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
				</subsection><subsection commented="no" id="id0871895D3CD54E9890E4ED38062FAC1F"><enum>(b)</enum><header>Effective
			 Date</header><text display-inline="yes-display-inline">The amendment made by
			 this section shall apply to services furnished on or after January 1,
			 2009.</text>
				</subsection></section><section id="id0D3DBFF1435D4F00BE8BFEBE231ED003"><enum>211.</enum><header>Adding skilled
			 nursing facilities as originating sites for payment of telehealth
			 services</header>
				<subsection id="ID9372d3c0466149cebad20bbc6db7eef2"><enum>(a)</enum><header>Addition</header>
					<paragraph id="id0EA4F222C0C94F82B47B0E9E10DA211C"><enum>(1)</enum><header>In
			 general</header><text>Section 1834(m)(4)(C)(ii) of the Social Security Act (42
			 U.S.C. 1395m(m)(4)(C)(ii)), as amended by section 210, is amended by adding at
			 the end the following new subclause:</text>
						<quoted-block display-inline="no-display-inline" id="idE1206C1C4E1B46E4AF6EFA3367439C08" style="OLC">
							<subclause id="ID5af9eef6dbab4fd8bcee24f47bc57a92"><enum>(VII)</enum><text>A skilled
				nursing facility (as defined in section
				1819(a)).</text>
							</subclause><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph><paragraph id="id64B7B83D17CC439D98F8B47EA3591DB3"><enum>(2)</enum><header>Conforming
			 amendment</header><text>Section 1888(e)(2)(A)(ii) of the Social Security Act
			 (42 U.S.C. 1395yy(e)(2)(A)(ii)) is amended by inserting <quote>telehealth
			 services furnished under section 1834(m)(4)(C)(ii)(VII),</quote> after
			 <quote>section 1861(s)(2),</quote>.</text>
					</paragraph></subsection><subsection id="IDa3b1ffd49a3f4778b21cf36e3739d2c7"><enum>(b)</enum><header>Effective
			 date</header><text>The amendments made by subsection (a) shall apply to
			 telehealth services furnished on or after January 1, 2009.</text>
				</subsection></section><section id="ID0EB8454AF7F84B5EB465C307156AF031"><enum>212.</enum><header>Rural health
			 clinic improvements</header><text display-inline="no-display-inline">Section
			 1833(f) of the <act-name parsable-cite="SSA">Social Security Act</act-name> (42
			 U.S.C. 1395l(f)) is amended—</text>
				<paragraph id="id1FCD466A204C465F8E1F7FA44F50F2C2"><enum>(1)</enum><text>in paragraph (1),
			 by striking <quote>, and</quote> at the end and inserting a semicolon;</text>
				</paragraph><paragraph id="idE9C0FF12EBE14F49907AD5C015218EAD"><enum>(2)</enum><text>in paragraph
			 (2)—</text>
					<subparagraph id="id5188DE7ED6A34BE8B2AD2EC7EA6A67B4"><enum>(A)</enum><text>by inserting
			 <quote>(before 2009)</quote> after <quote>in a subsequent year</quote>;
			 and</text>
					</subparagraph><subparagraph id="id551A03E7F76C40ED9283B5B5CB808B5F"><enum>(B)</enum><text>by striking the
			 period at the end and inserting a semicolon; and</text>
					</subparagraph></paragraph><paragraph id="id9031C69B0AE84D9FA069C04157425DBC"><enum>(3)</enum><text>by adding at the
			 end the following new paragraphs:</text>
					<quoted-block display-inline="no-display-inline" id="idAEECDD94285B49D8878F121F06D0DD17" style="OLC">
						<paragraph id="id8AE843E08D5A4669BBB2E516564D5D65"><enum>(3)</enum><text>in 2009, at $92
				per visit; and</text>
						</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idEE1790F52FDB43DBB5B326D00560A316"><enum>(4)</enum><text>in a subsequent
				year, at the limit established under this subsection for the previous year
				increased by the percentage increase in the MEI (as so defined) furnished as of
				the first day of that
				year.</text>
						</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
				</paragraph></section><section id="id5A6EA7E761824456849FDC761F74EFA6"><enum>213.</enum><header>Exemption for
			 suppliers in small MSAs and rural areas</header>
				<subsection id="id8F0BFACB6D474EEFB5190D5AC978F557"><enum>(a)</enum><header>Exemption</header><text>Section
			 1847(a)(3) of the Social Security Act (42 U.S.C. 1395w–3(a)(3)) is
			 amended—</text>
					<paragraph id="idB08D5E2552BD40B59362054F55E9B089"><enum>(1)</enum><text>in the matter
			 preceding subparagraph (A), by striking <quote>may</quote> and inserting
			 <quote>shall</quote>; and</text>
					</paragraph><paragraph id="id05B27181D661449F81AD0FED5AE14D99"><enum>(2)</enum><text>by striking
			 subparagraph (A) and inserting the following:</text>
						<quoted-block display-inline="no-display-inline" id="idA0C0C5F0FE334BB48011B691F181FB4E" style="OLC">
							<subparagraph id="id194D872C537943879889D4B7546FD73A"><enum>(A)</enum><text>rural areas and
				small metropolitan statistical areas with a population of 600,000 or less;
				and</text>
							</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
					</paragraph></subsection><subsection id="ID9511cd31ba2c4aaf916c2b114c84f8ee"><enum>(b)</enum><header>Inapplicability
			 of competitively bid prices to rural and small MSAs</header><text>Section
			 1834(a)(1)(F)(ii) of the Social Security Act (42 U.S.C. 1395m(a)(1)(F)(ii)) is
			 amended by striking <quote>the Secretary</quote> and inserting <quote>except in
			 the case of any area that is exempt from the programs under section 1847
			 pursuant to subsection (a)(3)(A) of such section, the Secretary</quote>.</text>
				</subsection><subsection id="ID31be79452a774899b3d955b4fc7e3235"><enum>(c)</enum><header>Effective date;
			 exception</header>
					<paragraph id="id4ED2C2494B2C41BDA3477BAD9657E3F6"><enum>(1)</enum><header>Effective
			 date</header><text>Subject to paragraph (2), the amendments made by this
			 section shall take effect as if included in the enactment of section 302 of the
			 Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (Public
			 Law 108–173; 117 Stat. 2223).</text>
					</paragraph><paragraph id="id658FDB8C809A48559D246D968165EDC1"><enum>(2)</enum><header>Exception</header><text>The
			 amendments made by this section shall not apply to contracts entered into under
			 section 1847 of the Social Security Act (42 U.S.C. 1395w–3) prior to September
			 1, 2008, pursuant to the implementation of subsection (a)(1)(B)(i)(I) of such
			 section 1847.</text>
					</paragraph></subsection></section><section id="id75B3CE00BCB8424F9F63281564862E12"><enum>214.</enum><header>Permitting
			 physician assistants to order post-hospital extended care services and to
			 provide for recognition of attending physician assistants as attending
			 physicians to serve hospice patients</header>
				<subsection id="ID2ed51bbe8fc743e4b4d9674331b9b1ab"><enum>(a)</enum><header>Ordering
			 post-hospital extended care services</header>
					<paragraph id="id5CC9C5B2D44641C2993624CE197C8684"><enum>(1)</enum><header>In
			 general</header><text>Section 1814(a)(2) of the Social Security Act (42 U.S.C.
			 1395f(a)(2)), in the matter preceding subparagraph (A), is amended by striking
			 <quote>nurse practitioner or clinical nurse specialist</quote> and inserting
			 <quote>nurse practitioner, a clinical nurse specialist, or a physician
			 assistant (as those terms are defined in section 1861(aa)(5))</quote>.</text>
					</paragraph><paragraph id="idFBCC1B362BCE48DD8A45572729957509"><enum>(2)</enum><header>Conforming
			 amendment</header><text>Section 1814(a) of the Social Security Act (42 U.S.C.
			 1395f(a)) is amended, in the second sentence, by striking <quote>or clinical
			 nurse specialist</quote> and inserting <quote>clinical nurse specialist, or
			 physician assistant</quote>.</text>
					</paragraph></subsection><subsection id="IDBAF4CC3323594F369FB86F6440439E40"><enum>(b)</enum><header>Recognition of
			 attending physician assistants as attending physicians To serve hospice
			 patients</header>
					<paragraph id="ID557FA49ACA1C4536A32A3A3FEC76FB90"><enum>(1)</enum><header>In
			 General</header><text>Section 1861(dd)(3)(B) of the Social Security Act (42
			 U.S.C. 1395x(dd)(3)(B)) is amended—</text>
						<subparagraph id="idB1DC9406D9C949A1AB99223169DFCC5E"><enum>(A)</enum><text>by striking
			 <quote>or nurse</quote> and inserting <quote>, the nurse</quote>; and</text>
						</subparagraph><subparagraph id="id2222B093442240798B46560769BB12D1"><enum>(B)</enum><text>by inserting
			 <quote>, or the physician assistant (as defined in such subsection)</quote>
			 after <quote>subsection (aa)(5))</quote>.</text>
						</subparagraph></paragraph><paragraph id="ID35BA217F1AD24B2AA118E539BCD5E11D"><enum>(2)</enum><header>Clarification
			 of hospice role of physician assistants</header><text>Section
			 1814(a)(7)(A)(i)(I) of the Social Security Act (42 U.S.C. 1395f(a)(7)(A)(i)(I))
			 is amended by inserting <quote>or a physician assistant</quote> after <quote>a
			 nurse practitioner</quote>.</text>
					</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="IDb14dbc1473c6481484366101d1308688"><enum>(c)</enum><header>Effective
			 date</header><text>The amendments made by this section shall apply to items and
			 services furnished on or after January 1, 2009.</text>
				</subsection></section></title></legis-body>
</bill>
