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CRS87296EPWpage17
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CR8-11 educational subsidies-includingmclassroom and other educational program costs, and payments for undergraduate nursing and allied health professional education. Capital-Related Costs Capital-related costs (including depreciation, leases and rentals, interest, and a return on equity for proprietary hosptials) are excluded from the prospective payment system until Oct. 1, 1987, and are paid
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CRS87296EPWpage11
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CRS-5 Section 223 of the 1972 Amendments authorized the Secretary to set pro- spective limits on hospital costs that were recognized as reasonable by Medicare. Under this authority, HHS annually published limits on Medicare reimbursement to hospitals beginning in 1974. In addition, the Tax Equity and Fiscal Responsibility Act of 1982, P.L. 97-248, established a 3-year Medicare ceiling (or target
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CRS87296EPWpage37
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50 percent rate. The budget also proposes to reduce the matching rate for States with per recipient administrative expenditures over 135 percent of the national median. For costs between 135 percent and 160 percent of the national median, the matching rate would be 25 percent (rather than 50 percent). For costs above 160 percent of the median, no Federal matching funds would be provided. The FY
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CRS87296EPWpage07
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July 1983, reduced Medicare outlays over what would otherwise have been expended over the FY 1982-FY 1985 period by $13.2 billion or 5 percent of program outlays. In January 1985, CBO estimated that Medicare program outlays have been reduced by $8.6 billion in FY 1986, $10.5 billion in FY 1987, and $12.5 billion in 1988. These numbers cannot be summed, however, since other factors, such as changing
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CRS87296EPWpage40
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CR8-34 “-facilities.-~These»are frequently referred to as 2176 waivers after the comparable section in P.L. 97-35. Services authorized to be provided under a waiver include both those not available under the individual State's Medicaid plan and those not generally available under Medicaid because they are primarily non-medical in nature. iThe FY 1988 budget would provide for waivers
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CRS87296EPWpage18
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CRS-12 l0-year transition period; payments for-movable equipment would be phased into PPS over a 2-year transition period. P.L. 99-272 provided that payments to proprietary hospitals for a return on equity (ROE) will be separated from payments for other capital costs and will be phased out as follows: for hosptial cost reporting periods beginning in FY87, payment will equal 75 percent
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CRS83104Cpage57
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\ 1 «:7 CertainTeed 333 Echlin 1’ 457 Harcourt Brace Javanovich 413 American Home Products A 76 Cessna Aircraft I 332 Economics Laboratory 379 Harnischfeger 479 ‘American Motors 139 Champion International 101 Emerson Electric 110 Harris 199 American Petrafina _ 171 A Champion Spark Plug 345 Emhart I 201 Harsco 297 Americonstandard ' 178 Charter 88 Engelhard 182 Hart Schatlner 8. Marx 329 Ametek
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CRS87296EPWpage31
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the beneficiaries would have used had they remained in traditional Medicare. HMO and CMP provisions were amended in 1984 and 1986 by P.L. 98-369, 99-272, and 99-509. The FY 1988 budget proposal would to expand this type of arrangement to organizations other than HMOs and CMPs{‘specifically, the budget proposes to permit Medicare to contract with private employers that currently provide health ibenefits
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CRS83104Cpage47
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. Robertson Company 2 Gateway Center , Pittsburgh, Pennsylvania 15222 399. Chrm. & CEO Douglas A. Jones Pres. Hugh E. Seely 412-281-3200 SIC 34 7 GAF Corporation 140 W. 51st Street New York, New York 10020 Chrm. & CEO Jesse Werner 212-621-5000 SIC 28 Bangor Punta Corporation One Greenwich Plaza Greenwich, Connecticut 06830 Chrm. & Pres. David W. Wallace 203-622-8100 SIC 41 Amsted Industries
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CRS87296EPWpage24
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CRS-18, each year beginning in-1987. .Physicians covered under participation agreements on May 1, 1986, received updates in their customary and prevailing charges. The freeze was extended through December 31, 1986 for nonparticipating physicians. This legislation also provided that, beginning January 1, 1987, nonparticipating physicians would be subject to the prevailing charge limits applied
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CRS83104Cpage36
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, Illinois 60077 Chrm. K. Brooks Abernathy Pres. & CEO Jack F. Reichert 312-470-4700 A SIC 47 Crane Company 300 Park Avenue New York, New York 10022 Chrm. & CEO Thomas M. Evans Pres. Robert J. Slater 212-980-3600 280. 1050 17th Street, N.W. Washington, D.C. 20036 202-785-4077 SIC 33 Richardson-Vicks Incorporated 281. 10 Westport Road Wilton, Connecticut 06897 Chrm. Smith Richardson, Jr. Pres. John
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CRS83104Cpage41
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. & CEO Henry H. Henley, Jr. Pres. Gordon E. Allen 212-930-3000 SIC 23 C1orox.Company 1221 Broadway Oakland, California 94612 Chrm. & CEO Calvin S. Hatch Pres. C. R. Weaver 415-271-7000 SIC 28 Lone Star Industries, Incorporated One Greenwich Plaza . Greenwich, Connecticut 06830 Chrm. & CEO James E. Stewart Pres. Robert F. Kizer 203-661-3100 1919 Pennsylvania Avenue, N.W. 1Suite 300
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CRS83104Cpage12
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57. 58. 59. 60. CRS-8 Sperry Corporation 1290 Avenue of the Americas New York, New York 10104 Chrm., Pres. & CEO Gerald G. Probst 212-484-4444 2000 L Street, N.W. Washington, D.C. 20036 202-293-7720 ‘ SIC 44 Raytheon Company 141 Spring Street Lexington, Massachusetts 02173 Chrm. & CEO Thomas L. Phillips Pres. D. Brainerd Holmes 617-862-6600 400 Army Navy Drive Arlington, Virginia 2220 703
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CRS87296EPWpage30
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-509, this concept could be applied only to employers of 100 or more employees for disabled beneficiaries electing such coverage. The FY-1988 budget proposes to permit disabled workers of employers having 20 or more employees to elect to have primary coverage under their employer's group health plan. Benefit Changes Recent legislation has made a number of changes to Medicare's benefit package to permit
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CRS87296EPWpage05
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..................................;.. 12 ? Cancer Hospitals ............................................. 13 Rural Referral Centers ....................................... 13 Hospitals Excluded from the Prospective Payment System ....... 14 Periodic Interim Payments to Hospitals ....................... 15 0- O\O\D®\lO‘U'|J-‘J-‘ B. Physicians ..................................................... 16 Inherent Reasonableness
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CRS87296EPWpage41
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spend 75 cents to receive a dollar. The permanent authorization for the block was set at $373 million. The Secretary of HHS was authorized to set aside 15 percent of the block's appropriation in FY 1982 and between 10 and 15 percent of its appropriation in succeeding fiscal years for special projects of regional and national significance.
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CRS83104Cpage58
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_ . - 340 Ogden 175 Shaklee 464 United Technologies « 20 1 , 1 0 A. ~. A s 3 Olin 193 Shell on 13 Universal Foods 452 J M/A-Com ‘ 40¢ Outboard Marine 34¢ Sheller-Globe 449 Upjohn 191,‘ MAPCO 183“ S Owens-Corning Fiberglas 163 Sherwin-Williams 190 ' 1 MEI ’ 448 Owens-illinois 107 Signal Companies 69 VF A . ‘ 319 Magic Chef 385 ' Oxford industries 488 Singer 1 155 Vbrian Associates 374 Manyiile
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CRS83104Cpage51
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Chestnut Ridge Road Montvale, New Jersey 07645 Pres. & CEO John R. Kennedy, Jr. 201-391-1776 SIC 26 Bausch & Lomb Incorporated One Lincoln First Square Rochester, New York 14601 Chrm., Pres. & CEO Daniel E. Gill 716-338-6000 SIC 38
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CRS83104Cpage35
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262. 263. 264. 265. 266. CRS-31 McGraw-Hill, Incorporated 267. 1221 Avenue of the Americas New York, New York 10020 Chrm. & CEO Harold W. McGraw, Jr. Pres. Joseph L. Dionne 212-997-1221 1750 K Street, N.W., Suite 1170 Washington, D.C. 20006 202-624-1266 SIC 27 268. Chromalloy American Corporation 120 S. Central Avenue St. Louis, Missouri 63105 Chrm. & CEO Norman E. Alexander Pres. William
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CRS83104Cpage10
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Donnell Douglas Corporation P.0. Box 516 St. Louis, Missouri 63166 Chrm. & CEO Sanford N. McDonnell Pres. John F. McDonnell 314-232-0232 47. 1150 17th Street, N.W., Suite 500 .Washington, D.C. 20036 202-728-2000 SIC 41 Minnesota Mining & Manufacturing Company 3M Center St. Paul, Minnesota 55101 Chrm. & CEO Lewis W. Lehr Pres. James A. Thwaits 612-733-1110 48. 1101 15th Street, N.W., Suite 1100
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