CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR SERVICES.

SEC. 735. CONSISTENCY BETWEEN CHAMPUS AND MEDICARE IN PAYMENT RATES FOR SERVICES. (a) Conformity Between Rates.—Section 1079(h) of title 10, United States Code, is amended by striking out paragraphs (1), (2), and (3) and inserting in lieu thereof the following new paragraph: “(1) Except as provided in paragraphs (2) and (3), payment for a charge for services by an individual health care professional (or other noninstitutional health care provider) for which a claim is submitted under a plan contracted for under subsection (a) shall be equal to an amount determined to be appropriate, to the extent practicable, in accordance with the same reimbursement rules as apply to payments for similar services under title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.). The Secretary of Defense shall determine the appropriate payment amount under this paragraph in consultation with the other administering Secretaries.”. (b) Reduced Rates Authorized.—Paragraph (5) of such section is amended by adding at the end the following new sentence: “With the consent of the health care provider, the Secretary is also authorized to reduce the authorized payment for certain health care services below the amount otherwise required by the payment limitations under paragraph (1).”.111 STAT. 1814 (c) Conforming Amendments.—Such section is further amended— (1) in paragraph (5), by striking out “paragraph (4), the Secretary” and inserting in lieu thereof “paragraph (2), the Secretary of Defense”; and (2) by redesignating paragraphs (4), (5), and (6) as paragraphs (2), (3), and (4), respectively.