APPLICATION OF MEDICARE RULES LIMITING CERTAIN PHYSICIAN REFERRALS.

SEC. 13624. APPLICATION OF MEDICARE RULES LIMITING CERTAIN PHYSICIAN REFERRALS. (a) In General.— Section 1903 (42 U.S.C.1396b) is amended by inserting after subsection (r) the following new subsection: “(s) Notwithstanding the preceding provisions of this section, no payment shall be made to a State under this section for expenditures for medical assistance under the State plan consisting of a designated health service (as defined in subsection (h)(6) of section 1877) furnished to an individual on the basis of a referral that would result in the denial of payment for the service under title XVIII if such title provided for coverage of such service to the same extent and under the same terms and conditions as under the State plan, and subsections (f) and (g)(5) of such section shall apply to a provider of such a designated health service for which payment may be made under this title in the same manner as such subsections apply to a provider of such a service for which payment may be made under such title.”. (b) Effective Date.— The amendment made by subsection (a) shall apply to referrals made on or after December 31, 1994.