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exclude those cases for which the most recent determina

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tion or redetermination of eligibility was correctly made, but where eligibility status subsequently changed, if the State meets the time requirements specified in

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section 1902 (a) (37);

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" (b) establish a State classification system, with States classified according to: (1) whether the State provides medical assistance for persons specified in section 1902 (a) (10) (C); and (2) population, with those States with greater populations in one grouping and those States with lesser populations in another;

"(c) establish an error rate defined as the rate which equals the 75th percentile of the rates reported by the States under paragraph (a) for each class of

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States under (b).

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“REPORT BY THE SECRETARY

17 "SEC. 1912. The Secretary shall prepare a biannual 18 report (beginning with fiscal year 1978) on the character19 istics of the State programs of medical assistance financed 20 under this title, including, at least (1) a description of the 21 scope and duration of benefits available in each State, (2) a 22 description of eligibility criteria for all groups eligible for 23 medical assistance, (3) specification of the reimbursement. 24 methodology for payments under the State program for the 25 major types of services, and (4) a listing of all fiscal agents,

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1 insurers and health maintenance organizations contracted 2 with for administration of the program. Such report shall be

3 submitted to the Committee on Finance of the Senate and

4 the Committee on Interstate and Foreign Commerce of the

5 House of Representatives no later than six months following 6 the close of the fiscal year.”

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REGULATIONS OF THE SECRETARY

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SEC. 32. (a) (1) Section 1102 of the Social Security

9 Act is anended

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(A) by inserting “(a)” immediately after “SEC.

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(B) by adding at the end the following subsection: 13 “(b) Whenever the Secretary, in compliance with 14 requirements imposed by law, has published in the Federal

15 Register general notice of any proposed rule or regulation

16 to be promulgated by him, that notice shall indicate whether

17 prompt promulgation is urgent. Where the notice indicates

18 that prompt promulgation is urgent, the rule or regulation 19 shall become effective within sixty days after publication of 20 the notice; in any other case, the rule or regulation shall 21 become effective without regard to the provisions of this

22 subsection in the manner prescribed by applicable provisions

23 of law.".

24 (2) Amendments made by paragraph (1) shall be 25 effective for proposed rules published in the Federal Register

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on and after the first day of the first calendar month which 2 begins more than thirty days after the date of enactment of

3 this Act.

(b) Except as otherwise specified in this Act or 5 in a provision of law which is enacted or amended by 6 this Act, any regulation of the Secretary of Health, Educaī tion, and Welfare (hereinafter in this section referred to as 8 the “Secretary”), which is necessary or appropriate to im9 plement any provision of this Act or any other provision of 10 law which is enacted or modified by this Act, shall, subject

to paragraph (2), be promulgated so as to become effective 12 not later than the first day of the thirteenth inonth following 13 the month in which this Act is enacted.

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SEC. 33. Section 1867 of the Social Security Act is

16 hereby repealed.

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PROCEDURES FOR DETERMINING REASONABLE COST AND

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REASONABLE CILARGE

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Src. 40. (a) (1) In determining the amount of any

20 payment under title XVIII, under a program established 21 under title V, or under a State plan approved under title 22 XIX, when the payment is based upon the reasonable cost

23 or reasonable charge, no element comprising any part of

24 the cost or charge shall be considered to be reasonable if, and

25 to the extent that, that clement is

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(A) a commission, finder's fee, or for a similar

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(B) an amount payable for any facility (or part or activity thereof) under any rental or lease arrange

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ment

6 which is, directly or indirectly, determined, wholly or in 7 part as a percentage, fraction, or portion of the charge or

8 cost attributed to any health service (other than the ele

9 ment) or any health service including, but not limited to,

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SEC. 41. (a) Section 1861 (s) (7) of the Social Security

13 Act is amended by inserting:

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(Including ambulance service to the nearest hos

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pital which is: (a) adequately equipped and (b) has

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medical personnel qualified to deal with, and available

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for the treatment of, the individual's illness, injury, or

18 condition)” immediately after “ambulance service”. 19 (b) The amendment made by subsection (a) shall 20 apply to services furnished on and after the first day of the 21 first calendar month which begins after the date of enact

22 ment of this Act.

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GRANTS TO REGIONAL PEDIATRIC PULMONARY CENTERS

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Sec. 42. (a) Section 511 of the Social Security Act is

25 amended

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(1) by inserting “(a)” immediately after “SEC.

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511.", and

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(2) by adding at the end of the section:

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“(b) (1) From the sums available under paragraph 5 (2), the Secretary is authorized to make grants to public

or nonprofit private regional pediatric respiratory centers, 7 which are a part of (or are asħliated with) an institution of 8 bigher learning, to assist them in carrying out a prograin for 9 tho training and instruction (through demonstrations and 10 otherwise) of health care personnel in the prevention, diag11 nosis and treatment of respiratory diseases in children and

young adults, and in providing (through such program) 13 needed health care services to children and young adults 14 suffering from such diseases.

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“(2) For the purpose of making grants under this sub

16 section, there is authorized to be appropriated, for the fiscal 17

year ending September 30, 1978, and each of the next four 18 succeeding fiscal years, such sums (not in excess of $5,19 000,000 for any fiscal year) as may be necessary. Sums 20 authorized to be appropriated for any fiscal year under this 21 subsection for making grants for the purposes referred to in 22 paragraph (1) shall be in addition to any sums authorized 23 to be appropriated for such fiscal year for similar purposes 24 under other provisions of this title.”. 25

(b) Section 502 (2) of such Act is amended by insert26 ing “(a)” immediately after “511”.

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