PUBLIC LAW 100-119—SEPT. 29, 1987 P t.-r
101 STAT. 765
"(ii) for funds not provided in annual appropriation Acts, from each budget account activity as identified in the program and financing schedules contained in the appendix to the Budget of the United States Government for that fiscal year, applying the same reduction percentage as the percentage by which the account is reduced in such report.
"(2) ORDER TO BE BASED ON DIRECTOR OF OMB'S REPORT.—The
order must provide for reductions in the manner specified in section 251(a)(3), must incorporate the provisions of the report submitted under section 251(a)(2)(B), and must be consistent with such report in all respects. The President may not modify or recalculate any of the estimates, determinations, specifications, bases, amounts, or percentages set forth in such report in determining the reductions to be specified in the order with respect to programs, projects, and activities, or with respect to budget activities, within an account. "(3) ORDER REQUIRED IF NO REDUCTIONS ARE NEEDED.—If the
report submitted under section 251(a)(2)(B) states that no aggregate outlay reductions are required for a fiscal year, the order issued by the President shall so state. "(4) EFFECT OF SEQUESTRATION UNDER INITIAL ORDER.—
"(A) IN GENERAL.—Notwithstanding section 257(7), amounts sequestered under an order issued by the President under paragraph (1) shall be withheld from obligation or expenditure pending the issuance of a final order under i -^ subsection (b) and shall be permanently sequestered or ^ reduced in accordance with such final order upon the issuance of such order. "(B) SPECIAL RULE CONCERNING REDUCTION OF PAYMENTS UNDER THE MEDICARE PROGRAM.—
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"(i) IN GENERAL.—With respect to services furnished during the interim period (as defined in clause (iii)) for any fiscal year, and notwithstanding any other provision of this Act, payments under the health insurance programs under title XVIII of the Social Security Act shall not be reduced by an initial order under this subsection for that fiscal year. "(ii)
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DIRECTOR OF OMB TO DETERMINE ANNUALIZED
PERCENTAGE REDUCTION.—The Director of OMB, in consultation with the Secretary of Health and Human Services, shall determine a percentage reduction which shall apply to payments under the health insurance programs under title XVIII of the Social Security Act for services furnished in any fiscal year after the interim period for that year, such that the reduction made in such payments under the final order under subsection (b) for that year shall achieve a total reduction of 2 percent (or, if lower, the uniform percentage reduction provided under section 251(a)(3)(E)(i)) in such payments for such fiscal year as determined on a 12month basis. "(iii) INTERIM PERIOD.—In this subparagraph, the term 'interim period' means, with respect to a fiscal year, the period beginning on October 1 of the fiscal year and ending on the date of the issuance of the final
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