PAYMENT FOR OSTOMY SUPPLIES AND OTHER SUPPLIES.

SEC. 13544. PAYMENT FOR OSTOMY SUPPLIES AND OTHER SUPPLIES. (a) Ostomy Supplies, Tracheostomy Supplies, and Urologicals.— (1) In general.— Section 1834(h)(1) (42 U.S.C. 1395m(h)(1)) is amended by adding at the end the following new subparagraph: “(E) Exception for certain items.— Payment for ostomy supplies, tracheostomy supplies, and urologicals shall be made in accordance with subparagraphs (B) and (C) of section 1834(a)(2).”. (2) Conforming amendment.— Section 1834(h)(1)(B) (42 U.S.C. 1395m(h)(1)(B)) is amended by striking “subparagraph (C),” and inserting “subparagraphs (C) and (E),”. (3) Effective date.— The amendments made by this subsection shall apply to items furnished on or after January 1, 1994. (b) Surgical Dressings.— (1) In general.— Section 1834 (42 U.S.C. 1395m) is amended by adding at the end the following new subsection: “(i) Payment for Surgical Dressings.— “(1) In general.— Payment under this subsection for surgical dressings (described in section 1861(s)(5)) shall be made in a lump sum amount for the purchase of the item in an amount equal to 80 percent of the lesser of— “(A) the actual charge for the item; or “(B) a payment amount determined in accordance with the methodology described in subparagraphs (B) and (C) of subsection (a)(2) (except that in applying such methodology, the national limited payment amount referred to in such subparagraphs shall be initially computed based on local payment amounts using average reasonable charges for the 12-month period ending December 31, 1992, 107 STAT. 590increased by the covered item updates described in such subsection for 1993 and 1994). “(2) Exceptions.— Paragraph (1) shall not apply to surgical dressings that are— “(A) furnished as an incident to a physician’s professional service; or “(B) furnished by a home health agency.”. (2) Conforming amendment.— Section 1833(a)(1) (42 U.S.C. 13951(a)(1)) is amended— (A) by striking “and” before “(N)”; (B) with respect to the matter inserted by section 4155(b)(2)(B) of OBRA–1990— (i) by striking “(M)” and inserting “, (O)”, and (ii) by transferring it and inserting it (as amended) immediately before the semicolon at the end; and (C) by inserting before the semicolon at the end the following: “, and (P) with respect to surgical dressings, the amounts paid shall be the amounts determined under section 1834(i)”. (3) Effective date.— The amendments made by this subsection shall apply to items furnished on or after January 1, 1994.