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1 threat to the health and safety of patients, and if the Secre2 tary certifies that the facility has been notified of its defi3 ciencies and has failed to correct them.".

4 (b) Section 1869 (c) of the Social Security Act is 5 amended by adding at the end the following sentence: "If 6 the Secretary's determination terminates a provider with an 7 existing agreement pursuant to section 1866 (b) (2), or if 8 that determination consists of a refusal to renew an existing 9 provider agreement, the provider's agreement shall remain in 10 effect until the period for filing a request for a hearing has 11 expired or, if a request has been filed, until a final decision 12 has been made by the Secretary: Provided, however, That 13 the agreement shall not be extended if the Secretary makes a 14 written determination, specifying the reasons therefor, that 15 the continuation of provider status constitutes an immediate 16 and serious threat to the health and safety of patients and if 17 the Secretary certifies that the provider has been notified 18 of such deficiencies and has failed to correct them.".

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(c) The amendments made by this section shall become effective on the date on which final regulations, promul21 gated by the Secretary to implement the amendments, are 22 issued; and those regulations shall be issued not later than

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1 the first day of the sixth calendar month following the month 2 in which this Act is enacted.

3 VISITS AWAY FROM INSTITUTION BY PATIENTS OF SKILLED

NURSING OR INTERMEDIATE CARE FACILITIES

SEC. 23. Section 1903 of the Social Security Act is

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6 amended by adding:

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"(1) In the administration of this title, the fact that an 8 individual who is an inpatient of a skilled nursing or inter9 mediate care facility leaves to make visits outside the facility 10 shall not conclusively indicate that he does not need services 11 which the facility is designed to provide; however, the fre12 quency and length of visits away shall be considered, to13 gether with other evidence, in determining whether the in14 dividual is in need of the facility's services.".

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17 SEC. 30. (a) Section 702 of the Social Security Act is

18 amended

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ESTABLISHMENT OF HEALTH CARE FINANCING

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ADMINISTRATION

(1) by inserting "(a)" immediately after "SEC. 702.", and

(2) by adding at the end the following subsection:

"(b) The Secretary shall establish, within the De

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23 partment of Health, Education, and Welfare, a separate

24 organization to be known as the Health Care Financing 25 Administration (which shall include the functions and per

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1 sonnel of administrative entities known as of January 1, 1977 2 as the 'Bureau of Health Insurance', the 'Medical Services 3 Administration', the 'Bureau of Quality Assurance' (includ4 ing the National Professional Standards Review Council), 5 and the 'Office of Long-Term Care' and related research 6 and statistical units (including the Division of Health In7 surance Studies of the Social Security Administration) 8 which shall be under the direction of the Assistant Secre9 tary for Health Care Financing, who shall report directly 10 to the Secretary and who shall have policy and adminis11 trative responsibility (including policy and administrative 12 responsibility with respect to health care standards and certi13 fication requirements as they apply to practitioners and in14 stitutions) for the programs established by titles XVIII 15 and XIX, part B of title XI, for the renal disease program 16 established by section 226 and any other health care financ17 ing programs as may be established under this Act. The 18 Assistant Secretary may not have any other duties or func19 tions assigned to him which would prevent him from carrying 20 out the duties required under the preceding sentence on a full21 time basis.

22 (b) (1) There shall be in the Department of Health, 28 Education, and Welfare an Assistant Secretary for Health 24 Care Financing, who shall be appointed by the President,

25 by and with the advice and consent of the Senate.

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(2) Section 5315 of title 5, United States Code, is 2 amended in paragraph (17) by striking out "(5)” and

3 inserting in lieu thereof "(6)".

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6 the end the following:

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STATE MEDICAID ADMINISTRATION

SEC. 31. (a) Section 1902 (a) is amended by adding at

"(37) provide

"(A) for making eligibility determinations on the basis of applications for coverage, within fortyfive days of the date of application for all individuals: (i) receiving aid or assistance (or who except for income and resources would be eligible for aid or assistance) under a plan of the State approved under title IV, part A, (ii) receiving aid or assistance (or who except for income and resources would be eligible for assistance) under any plan

of the State approved under title I, X, or XVI
(for the aged and the blind), or (ii) with respect
to whom supplemental security income benefits are
being paid (or who would except for income and
resources be eligible to have paid with respect to
them supplemental security income benefits) under
title XVI on the basis of age or blindness; and

"(B) for making eligibility
eligibility determina-

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tions based upon applications for coverage, within sixty days of application for all individuals: (i) receiving aid or assistance (or who except for income and resources would be eligible for aid or assistance) on the basis of disability under any plan of the State approved under title XIV or XVI, or (ii) for whom supplemental security income benefits are being paid (or who would except for income and resources be eligible to have paid to them supplemental security income benefits) under title XVI based upon disability;

"(C) for making redeterminations of eligibility for persons specified in subparagraphs (A) and (B): (i) when required based upon information the agency has previously obtained on anticipated changes in the individual's situation, (ii) within thirty days after receiving information on changes in an individual's circumstances which may affect his eligibility, and (iii) periodically but not less often than every six months for persons specified in subparagraph (A) (i), and not less often than annually for persons specified in subparagraph (A) (ii) and (A) (iii);

"(38) establish procedures to assure accurate determinations of eligibility and provide that the error

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