REDUCTIONS IN PAYMENTS FOR ENROLLEE BAD DEBT.

SEC. 4451. REDUCTIONS IN PAYMENTS FOR ENROLLEE BAD DEBT. Section 1861(v)(1) (42 U.S.C. 1395x(v)(1)) is amended by adding at the end the following new subparagraph: “(T) In determining such reasonable costs for hospitals, no reduction in copayments under section 1833(t)(5)(B) shall be treated as a bad debt and the amount of bad debts otherwise treated as allowable costs which are attributable to the deductibles and coinsurance amounts under this title shall be reduced— “(i) for cost reporting periods beginning during fiscal year 1998, by 25 percent of such amount otherwise allowable, “(ii) for cost reporting periods beginning during fiscal year 1999, by 40 percent of such amount otherwise allowable, and “(iii) for cost reporting periods beginning during a subsequent fiscal year, by 45 percent of such amount otherwise allowable.”.