PUBLIC LAW 106-113—APPENDIX F 113 STAT. 150LAL-327 SEC. 104. PROVISION FOR PART B ADD-ONS FOR FACILITIES PARTICI- PATING IN THE NHCMQ DEMONSTR/LTION PROJECT. (a) IN GENERAL. —Section 1888(e)(3) (42 U.S.C. 1395yy(e)(3)) is amended— (1) in subparagraph (A)— (A) in clause (i), by inserting "or, in the case of a faciHty participating in the Nursing Home Case-Mix and Quality Demonstration (RUGS-III), the RUGS-III rate received by the facility during the cost reporting period beginning in 1997" after "to non-settled cost reports"; and (B) in clause (ii), by striking "furnished during such period" and inserting "furnished during the applicable cost reporting period described in clause (i)"; and (2) by striking subparagraph (B) and inserting the following new subparagraph: "(B) UPDATE TO FIRST COST REPORTING PERioo.The Secretary shall update the amount determined under subparagraph (A), for each cost reporting period after the applicable cost reporting period described in subparagraph (A)(i) and up to the first cost reporting period by a factor equal to the skilled nursing facility market basket percentage increase minus 1.0 percentage point.". (b) EFFECTIVE DATE.—The amendments made by subsection (a) shall be effective as if included in the enactment of section 4432(a) of BBA SEC. 105. SPECIAL CONSIDERATION FOR FACILITIES SERVING SPECIALIZED PATIENT POPULATIONS. (a) IN GENERAL.—Section 1888(e) (42 U.S.C. 1395yy(e)), as amended by section 102(a)( 1), is further amended— (1) in paragraph (1), by striking "subject to paragraphs (7) and (11)" and inserting "subject to paragraphs (7), (11), and (12)"; and (2) by adding at the end the following new paragraph: "(12) PAYMENT RULE FOR CERTAIN FACILITIES.— "(A) IN GENERAL.—In the case of a qualified acute skilled nursing facility described in subparagraph (B), the per diem amount of payment shall be determined by applying the non-Federal percentage and Federal percentage specified in paragraph (2)(C)(ii). "(B) FACILITY DESCRIBED.—For purposes of subparagraph (A), a qualified acute skilled nursing facility is a facility that— "(i) was certified by the Secretary as a skilled nursing facility eligible to furnish services under this title before July 1, 1992; "(ii) is a hospital-based facility; and "(iii) for the cost reporting period beginning in fiscal year 1998, the facility had more than 60 percent of total patient days comprised of patients who are described in subparagraph (C). " (C) DESCRIPTION OF PATIENTS. —For purposes of subparagraph (B), a patient described in this subparagraph is an individual who— "(i) is entitled to benefits under part A; and
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