SPECIAL RULES FOR MEDICARE PROGRAM.

SEC. 107. SPECIAL RULES FOR MEDICARE PROGRAM. (a) Temporary Extension of Payment Policies for Inpatient Hospital Services.— (1) In general.— Notwithstanding any other provision of law, with respect to payment for inpatient hospital services under section 1886 of the Social Security Act: (A) Temporary freeze in pps hospital rates— For purposes of subsection (d) of such section for discharges occurring during the period beginning on October 1, 1987, and ending on November 20, 1987 (in this paragraph referred to as the “extension period”), the applicable percentage increase under subsection (b)(3)(B) of such section with respect to fiscal year 1988 is deemed to be 0 percent. (B) Temporary freeze in payment basis.— (i) Extension of blended drg rate.— For purposes of subsection (d)(1) of such section, the “applicable combined adjusted DRG prospective payment rate” for discharges occurring— (I) during the extension period is the rate specified in subsection (d)(1)(D)(ii) of such section, or (II) after such period is the national adjusted prospective payment rate determined under subsection (d)(3) of such section. (ii) Extension of hospital-specific payment.— For the first 51 days of a hospital cost reporting period beginning during fiscal year 1988, payment shall be made under clause (ii) (rather than clause (iii)) of subsection (d)(1)(A) of such section (subject to clause (i) of this subparagraph). (C) Temporary freeze in amounts of payment for capital.— For payments attributable to portions of cost reporting periods occurring during the extension period, the percent specified in subsection (g)(3)(A)(ii) of such section is deemed to be 3.5 percent. (D) Temporary freeze in return on equity reductions.— For the first 51 days of a cost reporting period beginning during fiscal year 1988, subsection (g)(2) of such101 STAT. 783 section shall be applied as though the applicable percentage were 75 percent. (E) Temporary freeze in payments rates for ppsexempt hospitals.— For purposes of payment under subsection (b) of such section for cost reporting periods beginning during fiscal year 1988, with respect to the first 51 days of such a period the applicable percentage increase under paragraph (3)(B) of such subsection is deemed to be 0 percent. (2) Continuation of capital policy.— Section 9321(c) of the Omnibus Budget Reconciliation Act of 1986 is amended— (A) by striking ‘‘September 1” in the heading of paragraph (1) and inserting “November 21”, (B) in paragraph (1), by striking “September 1, 1987” and inserting “November 21, 1987”, (C) in the second sentence of paragraph (1), by striking “before the date of the enactment of this Act”, and (D) in paragraph (4), by striking “second sentence” and all that follows through “operating costs” and inserting “second sentence of section 1886(a)(4) of the Social Security Act, from the term ‘operating costs”. (b) Freezing Certain Changes in Medicare Payment Regulations and Policies.— (1) In general.— Notwithstanding any other provision of law, the Secretary of Health and Human Services is not authorized to issue after September 18, 1987, and before November 21, 1987— (A) any final regulation that changes the policy with respect to payment under title XVIII of the Social Security Act to providers of service for reasonable costs relating to unrecovered costs associated with unpaid deductible and coinsurance amounts incurred under such title; (B) 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 such title; or (C) any final regulation that changes the policy under such title with respect to payment for a return on equity capital for outpatient hospital services. The final regulation of the Health Care Financing Administration published on September 1, 1987 (52 Federal Register 32920) and relating to changes to the return on equity capital provisions for outpatient hospital services is void and of no effect. (2) Other cost savings policies.— Notwithstanding any other provision of law, except as required to implement specific provisions required under statute, the Secretary of Health and Human Services is not authorized to issue in final form, after September 18, 1987, and before November 21, 1987, any regulation, instruction, or other policy which is estimated by the Secretary to result in a net reduction in expenditures under title XVIII of the Social Security Act in fiscal year 1988 of more than $50,000,000. Any regulation, instruction, or policy which is issued in violation of this paragraph is void and of no effect. (3) Exception.— Paragraphs (1) and (2) shall not be construed to apply to any regulation, instruction, or policy required to implement the amendment made by section 9311(a) of the101 STAT. 784 Omnibus Budget Reconciliation Act of 1986 (relating to periods interim payments). (c) Delay in Organ Procurement Requirements.— Section 9318(b) of the Omnibus Budget Reconciliation Act of 1986 is amended by striking “October 1, 1987” each place it appears and inserting “November 21, 1987”.