103 STAT. 2140 PUBLIC LAW 101-239—DEC. 19, 1989 Rural Eireas. Urban areas. 42 USC 1395ww note. 42 USC 1395WW note. the reductions in the amount of payments required under title XVIII of the Social Security Act made by the final sequester order issued by the President on October 16, 1989, pursuant to section 252(b) of the Balanced Budget and Emergency Eteficit Control Act of 1985 shall continue to be effective (as provided by sections 252(a)(4)(B) and 256(d)(2) of such Act) through December 31, 1989, with respect to payments for items and services under part A of such title (including payments under section 1886 of such title attributable or allocated to such part). Each such payment made for items and services provided during fiscal year 1990 after such date shall be incresised by 1.42 percent above what it would otherwise be under this Act. SEC. 6002. REDUCTION IN PAYMENTS FOR CAPITAL-RELATED COSTS OF INPATIENT HOSPITAL SERVICES FOR FISCAL YEAR 1990. Section 1886(g)(3)(A) of the Social Security Act (42 U.S.C. 1395ww(g)(3)(A)) is amended— (1) in clause (iii), by striking "and"; (2) in clause (iv), by striking the period at the end and inserting ", and"; and (3) by adding at the end the following new clause: "(v) 15 percent for payments attributable to portions of cost reporting periods or discharges (as the case may be) occurring during the period beginning January 1, 1990, and ending September 30, 1990. ". SEC. 6003. PROSPECTIVE PAYMENT HOSPITALS. (a) CHANGES IN HOSPITAL UPDATE FACTORS. — (1) IN GENERAL. —Section 1886(b)(3)(B)(i) of the Social Security Act (42 U.S.C. 1395ww(b)(3)(B)(i)) is amended— (A) by striking "and" at the end of subclause (IV), (B) in subclause (V), by striking "1990" and inserting "1991" and redesignating such subclause as subclause (VI), and (C) by inserting after subclause (IV) the following new subclause: "(V) for fiscal year 1990, the market basket percentage in- crease plus 4.22 percentage points for hospitals located in a rural area, the market basket percentage increase plus 0.12 percentage points for hospitals located in a large urban area, and the market basket percentage increase minus 0.53 percent- age points for hospitals located in other urban areas, and". (2) EFFECTIVE DATE.— The amendments made by paragraph (1) shall apply to payments for discharges occurring on or after January 1, 1990. (3) INDEXING OF FUTURE APPLICABLE PERCENTAGE INCREASES. — For discharges occurring on or after October 1, 1990, the ap- plicable percentage increase (described in section 1886(b)(3)(B) of the Social Security Act) for discharges occurring during fiscal year 1990 is deemed to have been such percentage increase as amended by paragraph (1). (b) REDUCTION IN DRG WEIGHTING FACTORS FOR FISCAL YEAR 1990; FUTURE ANNUAL RECALIBRATION OF DRG WEIGHTS ON BUDGET- NEUTRAL BASIS. —Section 1886(d)(4)(C) of such Act (42 U.S.C. 1395ww(d)(4)(C)) is amended— (1) by striking "(C)" and inserting "(C)(i)"; and (2) by adding at the end the following new clauses:
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