PUBLIC LAW 106-113—APPENDIX F 113 STAT. 1501A-361 imposed under clause (v) for such provider and period shall be increased by 2 percent.". (b) INCREASE NOT INCLUDED IN PPS BASE. —The second sentence of section 1895(b)(3)(A)(i) (42 U.S.C. 1395fff(b)(3)(A)(i)), as amended by section 302(b), is further amended— (1) in subclause (I), by inserting; "and if section 1861(v)(l)(L)(ix) had not been enacted" before the semicolon; and (2) in subclause (II), by inserting "and if section 1861(v)(l)(L)(ix) had not been enacted" after "if the system had not been in effect". (c) EFFECTIVE DATE.— The amendments made by this section shall apply to services furnished by home health agencies for cost reporting periods beginning on or after October 1, 1999. SEC. 304. CLARIFICATION OF SURETY BOND REQWREMENTS. (a) HOME HEALTH AGENCIES. —Section 1861(o)(7) (42 U.S.C. 1395x(o)(7)) is amended to read as follows: "(7) provides the Secretary with a surety bond— "(A) effective for a period of 4 years (as specified by the Secretary) or in the case of a change in the ownership or control of the agency (as determined by the Secretary) during or after such 4-year period, an additional period of time that the Secretary determines appropriate, such additional period not to exceed 4 years from the date of such change in ownership or control; "(B) in a form specified by the Secretary; and "(C) for a year in the period described in subparagraph (A) in an amount that is equal to the lesser of $50,000 or 10 percent of the aggregate amount of payments to the agency under this title and title XIX for that year, as estimated by the Secretary; and". (b) COORDINATION OF SURETY BONDS. — Part A of title XI of the Social Security Act is amended by inserting after section 1128E the following new section: "COORDINATION OF MEDICARE AND MEDICAID SURETY BOND PROVISIONS "SEC. 1128F. In the case of a home health agency that is subject to a surety bond requirement under title XVIII and title XIX, the surety bond provided to satisfy the requirement under one such title shall satisfy the requirement under the other such title so long as the bond applies to guarantees return of overpay- ments under both such titles.". (c) EFFECTIVE DATE. —The amendments made by this section take effect on the date of the enactment of this Act, and in applying section 1861(o)(7) of the Social Security Act (42 U.S.C. 1395x(o)(7)), as amended by subsection (a), the Secretary of Health and Human Services may take into account the previous period for which a home health agency had a surety bond in effect under such section before such date. SEC. 305. REFINEMENT OF HOME HEALTH AGENCY CONSOLIDATED BILLING. (a) IN GENERAL.—Section 1842(b)(6)(F) (42 U.S.C. 1395u(b)(6)(F)) is amended by inserting "(including medical supplies described in section 1861(m)(5), but excluding durable medical
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