Ill STAT. 508 PUBLIC LAW 105-33—AUG. 5, 1997 "(ii) providers, beneficiaries and their representatives, and other concerned State residents are given a reasonable opportunity for review and comment on the proposed rates, methodologies, and justifications, "(iii) final rates, the methodologies underlying the establishment of such rates, and justifications for such final rates are published, and "(iv) in the case of hospiteils, such rates take into account (in a manner consistent with section 1923) the situation of hospitals which serve a disproportionate number of low-income patients with special needs;"; (2) by redesignating subparagraphs (D) and (E) as subparagraphs (B) and (C), respectively; (3) in subparagraph (B), as so redesignated, by adding "and" at the end; (4) in subparagraph (C), as so redesignated, by striking "and" at the end; and (5) by striking subparagraph (F). 42 USC 1396a (b) STUDY AND REPORT. — note. (1) STUDY. —The Secretary of Health and Human Services shall study the effect on access to, and the quality of, services provided to beneficiaries of the rate-setting methods used by States pursuant to section 1902(a)(13)(A) of the Social Security Act (42 U.S.C. 1396a(a)(13XA)), as amended by subsection (a). (2) REPORT. —Not later than 4 years after the date of the enactment of this Act, the Secretary of Health and Human Services shall submit a report to the appropriate committees of Congress on the conclusions of the study conducted under paragraph (1), together with any recommendations for legislation as a result of such conclusions, (c) CONFORMING AMENDMENTS. — (1) Section 1905(o)(3) (42 U.S.C. 1396d(o)(3)) is amended by striking "amount described in section 1902(a)(13)(D)" and inserting "amount determined in section 1902(a)(13)(B)". (2) Section 1923 (42 U.S.C. 1396r-4) is amended, in subsections (a)(1) and (e)(1), by striking "1902(a)(13)(A)" each place it appears and inserting "1902(a)(13)(A)(iv)". 42 USC 1396a (d) EFFECTIVE DATE.— This section shall take effect on the note. date of the enactment of this Act and the amendments made by subsections (a) and (c) shall apply to payment for items and services furnished on or after October 1, 1997. SEC. 4712. PAYMENT FOR CENTER AND CLINIC SERVICES. (a) PHASE-OUT OF PAYMENT BASED ON REASONABLE COSTS. — Section 1902(a)(13)(C) (42 U.S.C. 1396a(a)(13)(C)), as redesignated by section 4711(a)(2), is amended by inserting "(or 95 percent for services furnished during fiscal year 2000, 90 percent for services furnished during fiscal year 2001, 85 percent for services furnished during fiscal year 2002, or 70 percent for services furnished during fiscal year 2003)" after "100 percent". (b) TRANSITIONAL SUPPLEMENTAL PAYMENT FOR SERVICES FUR- NISHED UNDER CERTAIN MANAGED CARE CONTRACTS. — (1) IN GENERAL.— Section 1902(a)(13)(C) (42 U.S.C. 1396a(a)(13)(C)), as so redesignated, is further amended— (A) by inserting "(i)" afl;er "(C)", and (B) by inserting before the semicolon at the end the following: "and (ii) in carrying out clause (i) in the case
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