113 STAT. 1501A-362 PUBLIC LAW 106-113—APPENDIX F equipment to the extent provided for in such section)" after "home health services". (b) CONFORMING AMENDMENT.— Section 1862(a)(21) (42 U.S.C. 1395y(a)(21)) is amended by inserting "(including medical supplies described in section 1861(m)(5), but excluding durable medical equipment to the extent provided for in such section)" after "home health services". (c) EFFECTIVE DATE. —The amendments made by this section shall apply to payments for services provided on or after the date of enactment of this Act. SEC. 306. TECHNICAL AMENDMENT CLARIFYING APPLICABLE MARKET BASKET INCREASE FOR PPS. Section 1895(b)(3)(B)(ii)(I) (42 U.S.C. 1395fff(b)(3)(B)(ii)(I)) is amended by striking "fiscal year 2002 or 2003" and inserting "each of fiscal years 2002 and 2003". SEC. 307. STUDY AND REPORT TO CONGRESS REGARDING THE EXEMP- TION OF RURAL AGENCIES AND POPULATIONS FROM INCLUSION IN THE HOME HEALTH PROSPECTIVE PAY- MENT SYSTEM. (a) STUDY. —The Medicare Payment Advisory Commission (referred to in this section as "MedPAC") shall conduct a study to determine the feasibility and advisability of exempting home health services provided by a home health agency (or by others under arrangements with such agency) located in a rural area, or to an individual residing in a rural area, from payment under the prospective payment system for such services established by the Secretary of Health and Human Services in accordance with section 1895 of the Social Security Act (42 U.S.C. 1395fifr). (b) REPORT.— Not later than 2 years after the date of the enactment of this Act, MedPAC shall submit a report to Congress on the study conducted under subsection (a), together with any recommendations for legislation that MedPAC determines to be appropriate as a result of such study. Subtitle B—Direct Graduate Medical Education SEC. 311. USE OF NATIONAL AVERAGE PAYMENT METHODOLOGY IN COMPUTING DIRECT GRADUATE MEDICAL EDUCATION (DGME) PAYMENTS. (a) IN GENERAL. —Section 1886(h)(2) (42 U.S.C. 1395ww(h)(2)) is amended— (1) in subparagraph (D)(i), by striking "clause (ii)" and inserting "a subsequent clause"; (2) by adding at the end of subparagraph (D) the following new clauses: "(iii) FLOOR IN FISCAL YEAR 2001 AT 70 PERCENT OF LOCALITY ADJUSTED NATIONAL AVERAGE PER RESI- DENT AMOUNT. — The approved FTE resident amount for a hospital for the cost reporting period beginning during fiscal year 2001 shall not be less than 70 percent of the locality adjusted national average per resident amount computed under subparagraph (E) for the hospital and period.
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