PAYMENT CYCLE STANDARDS.

SEC. 4031. PAYMENT CYCLE STANDARDS. (a) Payment Floor Standards.— (1) Section 1816(c) of the Social Security Act (42 U.S.C. 1395h(c)) is amended by adding at the end the following new paragraph: “(3) (A) Each agreement under this section shall provide that no payment shall be issued, mailed, or otherwise transmitted with respect to any claim submitted under this title within the applicable number of calendar days after the date on which the claim is received. “(B) In this paragraph, the term ‘applicable number of calendar days’ means— 101 STAT. 1330–76 “(i) with respect to claims received in the 3-month period beginning July 1, 1988, 10 days, and “(ii) with respect to claims received in the 12-month period beginning October 1, 1988, 14 days.”.27b27bCopy read “days.”. (2) Section 1842(c) of such Act (42 U.S.C. 1395u(c)) is amended by adding at the end the following new paragraph: “(3) (A) Each contract under this section which provides for the disbursement of funds, as described in subsection (a)(1)(B), shall provide that no payment shall be issued, mailed, or otherwise transmitted with respect to any claim submitted under this title within the applicable number of calendar days after the date on which the claim is received. “(B) In this paragraph, the term ‘applicable number of calendar days’ means— “(i) with respect to claims received in the 3-month period beginning July 1, 1988, 10 days, and “(ii) with respect to claims received in the 12-month period beginning October 1, 1988, 14 days.”. 27b27bCopy read “days.”. (3) (A) The amendments made by paragraphs (1) and (2) shall apply to claims received on or after July 1, 1988. (B) The Secretary of Health and Human Services shall provide for such timely amendments to agreements under section 1816 of the Social Security Act and contracts under section 1842 of such Act, and regulations, to such extent as may be necessary to implement the provisions of this subsection on a timely basis. (b) Prohibition of Other Policies Intended to Slow Down Medicare Payments.— Notwithstanding any other provision of law, except as specifically provided in this section, the Secretary of Health and Human Services is not authorized to issue, after the date of the enactment of this Act, and before October 1, 1990, any final regulation, instruction, or other policy change which is primarily intended to have the effect of slowing down claims processing, or delaying payment of claims, under title XVIII of the Social Security Act. (c) Budget Considerations.— For purposes of section 202 of the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987, this section is a necessary (but secondary) result of a significant policy change.