PUBLIC LAW 97-35—AUG. 13, 1981
95 STAT. 803
1982, submit to the Congress a report on steps taken by January 1, 1982, to enter into agreements under this section, including a general description of each of such agreements entered into by such date and the timetable under which he anticipates other such agreements will be entered into. Thereafter, the Secretary".
Subtitle C—Provisions Relating to Medicaid CHAPTER 1 —CHANGES IN PAYMENTS TO STATES REDUCTION IN MEDICAID PAYMENTS TO STATES AND OFFSET FOR MEETING FEDERAL MEDICAID EXPENDITURE TARGETS
SEC. 2161. (a) Section 1903 of the Social Security Act is amended by 42 USC I396b. adding at the end the following new subsection: "(s)(l)(A) Notwithstanding any other provision of this section (except as otherwise provided in this subsection), the amount of payments which a State is otherwise entitled to receive under this title for any quarter in— "(i) fiscal year 1982, shall be reduced by 3 percent, "(ii) fiscal year 1983, shall be reduced by 4 percent, and "(iii) fiscal year 1984, shall be reduced by 4.5 percent, of the amount to which the State is otherwise entitled (without regard to payments under subsection (t) and without regard to payments for claims relating to expenditures made before fiscal year 1981). "(B) No reduction may be made under subparagraph (A) for a quarter unless, as of the first day of the quarter, the Secretary has promulgated and has in effect final regulations (on an interim or other basis) implementing paragraphs (lOXC) and (13XA) of section 1902(a) (as amended by the Medicare and Medicaid Amendments of 1981). "(C) For purposes of this paragraph, the term 'State' only includes the fifty States and the District of Columbia and does not include any State which did not have a plan approved under this title as of July 1, 1981. "(2) The percentage reduction imposed by paragraph (1) for a State for a quarter shall be reduced— "(A) by one percentage point if the State has a qualified hospital cost review program (described in paragraph (3)) for the quarter, "(B) by one percentage point if the State has a high unemployment rate (as determined under paragraph (4)) for the quarter, and "(C) by one percentage point if the total amount of the State's third party and fraud and abuse recoveries (as defined in paragraph (5)(A)) for the previous quarter is equal to or exceeds one percent of the amount of Federal payments that the Secretary estimates are due the State under this title for that previous quarter (without regard to payments under subsection (t)). "(3) For purposes of paragraph (2)(A), a State has a qualified hospital cost review program for a calendar quarter if such program meets the following requirements: "(A) The progremi must have been established by statute and in effect on July 1, 1981, and at the be^nning of the quarter. "(B) The program must be operated directly by the State and must apply (i) to substantially all nonfederal acute care hospitals (as defined by the Secretary) in the State and (ii) to review of