II 112th CONGRESS 1st Session S. 1242 IN THE SENATE OF THE UNITED STATES June 21 (legislative day, June 16), 2011 Mr. Rockefeller (for himself and Mr. Manchin) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To provide for the treatment of certain hospitals under the Medicare program.

1.

Short title

This Act may be cited as the Fair Competition for Hospitals Act of 2011.

2.

Treatment of certain hospitals

(a)

Treatment

(1)

In general

Notwithstanding any other provision of law, effective for discharges occurring on or after October 1, 2011, for purposes of making payments under section 1886(d) of the Social Security Act (42 U.S.C. 1395ww) to a hospital described in paragraph (2), the wage index that applies to such hospital under such section shall be the highest wage index assigned to hospitals in the core-based statistical area in which the hospital is located (regardless of which State the hospital is located in) as a result of the application of section 4410(a) of the Balanced Budget Act of 1997 (42 U.S.C. 1395ww note). (2)

Hospital described

A hospital described in this paragraph is a hospital— (A)that is located in a core-based statistical area which is comprised of counties from more than 1 State; (B)that is not located in a core-based statistical area in which 1 or more hospitals are subject to the minimum wage index under paragraph (h)(4) of section 412.64 of title 42, Code of Federal Regulations; and (C)that is not located in a core-based statistical area in which the highest wage index described in paragraph (1) applies to hospitals described in such paragraph under a State reimbursement system under section 1814(b)(3) or 1886(c) of the Social Security Act (42 U.S.C. 1395f(b)(3); 1395ww(c)). (b)

Rules

Any increase in the wage index of a hospital as a result of the application of subsection (a) shall be treated as the result of a decision of the Medicare Geographic Classification Review Board under paragraph (10) of section 1886(d) of the Social Security Act (42 U.S.C. 1395ww(d)) and subject to budget neutrality under paragraph (8)(D) of such section.