CLINICAL DIAGNOSTIC LABORATORY TESTS.

SEC. 6111. CLINICAL DIAGNOSTIC LABORATORY TESTS. (a) Reduction of Limitation Amount on Payment Amount.—Section 1833(h) of the Social Security Act (42 U.S.C. 1395l(h)) is amended— (1) in subparagraphs (B) and (C) of paragraph (1), by striking “during the period” and all that follows through “established on a nationwide basis” and inserting “on or after July 1, 1984”; 103 STAT. 2214 (2) in paragraph (4)(B)(i), by striking “or” at the end; (3) in paragraph (4)(B)(ii)— (A) by striking “and so long as a fee schedule for the test has not been established on a nationwide basis,”, (B) by inserting “and before January 1, 1990,” after “March 31, 1988,”, and (C) by striking the period at the end and inserting “, and”; and (4) by adding at the end of paragraph (4)(B) the following new clause: “(iii) after December 31, 1989, is equal to 93 percent of the median of all the fee schedules established for that test for that laboratory setting under paragraph (1).”. (b) Restriction on Payment to Referring Laboratory.— (1) In general.— Section 1833(h)(5)(A)(ii) of such Act (42 U.S.C. 1395l(h)(5)(A)(ii)) is amended by striking “referring laboratory, and” and inserting “referring laboratory but only if— “(I) the referring laboratory is located in, or is part of, a rural hospital, “(II) the referring laboratory is a wholly-owned subsidiary of the entity performing such test, the referring laboratory wholly owns the entity performing such test, or both the referring laboratory and the entity performing such test are wholly-owned by a third entity, or “(III) not more than 30 percent of the clinical diagnostic laboratory tests for which such referring laboratory submits bills or requests for payment in any year are performed by another laboratory, and”. (2) Effective date.—The amendment made by paragraph (1) shall apply with respect to clinical diagnostic laboratory tests performed on or after January 1, 1990.