MEDICARE PAYMENT UPDATES FOR POST-ACUTE PROVIDERS.

SEC. 411. MEDICARE PAYMENT UPDATES FOR POST-ACUTE PROVIDERS. (a) SNFs.—Section 1888(e) of the Social Security Act (42 U.S.C. 1395yy(e))— (1) in paragraph (5)(B)— (A) in clause (i), by striking “clause (ii)” and inserting “clauses (ii) and (iii)”; (B) in clause (ii), by inserting “subject to clause (iii),” after “each subsequent fiscal year,”; and (C) by adding at the end the following new clause: “(iii) Special rule for fiscal year 2018.—For fiscal year 2018 (or other similar annual period specified in clause (i)), the skilled nursing facility market basket percentage, after application of clause (ii), is equal to 1 percent.” ; and (2) in paragraph (6)(A), by striking “paragraph (5)(B)(ii)” and inserting “clauses (ii) and (iii) of paragraph (5)(B)” each place it appears. (b) IRFs.—Section 1886(j) of the Social Security Act (42 U.S.C. 1395ww(j)) is amended— (1) in paragraph (3)(C)— (A) in clause (i), by striking “clause (ii)” and inserting “clauses (ii) and (iii)”; (B) in clause (ii), by striking “After” and inserting “Subject to clause (iii), after”; and (C) by adding at the end the following new clause: “(iii) Special rule for fiscal year 2018.—The increase factor to be applied under this subparagraph for fiscal year 2018, after the application of clause (ii), shall be 1 percent.” ; and (2) in paragraph (7)(A)(i), by striking “paragraph (3)(D)” and inserting “subparagraphs (C)(iii) and (D) of paragraph (3)”. (c) HHAs.—Section 1895(b)(3)(B) of the Social Security Act (42 U.S.C. 1395fff(b)(3)(B)) is amended— (1) in clause (iii), by adding at the end the following: “Notwithstanding the previous sentence, the home health market basket percentage increase for 2018 shall be 1 percent.”; and (2) in clause (vi)(I), by inserting “(except 2018)” after “each subsequent year”. (d) Hospice.—Section 1814(i) of the Social Security Act (42 U.S.C. 1395f(i)) is amended— (1) in paragraph (1)(C)— (A) in clause (ii)(VII), by striking “clause (iv),,” and inserting “clauses (iv) and (vi),”; (B) in clause (iii), by striking “clause (iv),” and inserting “clauses (iv) and (vi),”; (C) in clause (iv), by striking “After determining” and inserting “Subject to clause (vi), after determining”; and (D) by adding at the end the following new clause: “(vi) For fiscal year 2018, the market basket percentage increase under clause (ii)(VII) or (iii), as applicable, after application of clause (iv), shall be 1 percent.” ; and (2) in paragraph (5)(A)(i), by striking “paragraph (1)(C)(iv)” and inserting “clauses (iv) and (vi) of paragraph (1)(C)”. (e) LTCHs.—Section 1886(m)(3) of the Social Security Act (42 U.S.C. 1395ww(m)(3)) is amended— (1) in subparagraph (A), in the matter preceding clause (i), by striking “In implementing” and inserting “Subject to subparagraph (C), in implementing”; and (2) by adding at the end the following new subparagraph: “(C) Additional special rule.—For fiscal year 2018, the annual update under subparagraph (A) for the fiscal year, after application of clauses (i) and (ii) of subparagraph (A), shall be 1 percent.” .