HR 3284 IH
101st CONGRESS
1st Session
 H. R. 3284
To amend titles XVIII and XIX of the Social Security Act to permit the use
of medicare and medicaid payments as collateral for hospitals.
IN THE HOUSE OF REPRESENTATIVES
September 18, 1989
Mr. MCMILLEN of Maryland introduced the following bill; which was referred
jointly to the Committees on Ways and Means and Energy and Commerce
A BILL
To amend titles XVIII and XIX of the Social Security Act to permit the use
of medicare and medicaid payments as collateral for hospitals.
  Be it enacted by the Senate and House of Representatives of the United
  States of America in Congress assembled,
SECTION 1. PERMITTING USE OF MEDICARE AND MEDICAID PAYMENTS AS COLLATERAL
FOR HOSPITALS.
  (a) MEDICARE- (1) Section 1815(c) of the Social Security Act (42
  U.S.C. 1395h(c)) is amended by striking `or' before `(2)' and by inserting
  before the period at the end the following: `, or (3) to prevent the making
  of such a payment pursuant to a collateral arrangement between a hospital
  and an entity which has loaned funds to the hospital'.
  (2) Section 1842(b)(6) of such Act (42 U.S.C. 1395u(b)(6)) is amended--
  (A) in the first sentence, by striking `and' before `(C)' and by inserting
  before the period at the end the following: `, and (D) in the case of a
  hospital which is using such a payment as collateral for a loan from an
  entity, payment may be made under such a collateral arrangement'; and
  (B) in the third sentence, by striking `or' before `(ii)' and by inserting
  before the period at the end the following: `, or (iii) to prevent the
  making of such a payment pursuant to a collateral arrangement between a
  hospital and an entity which has loaned funds to the hospital'.
  (b) MEDICAID- Section 1902(a)(32)(B) of such Act (42 U.S.C. 1396a(a)(32)(B))
  is amended `or' before `(ii)' and by inserting before the semicolon at the
  end the following: `, or (iii) to prevent the making of such a payment
  pursuant to a collateral arrangement between a hospital and an entity
  which has loaned funds to the hospital'.
  (c) EFFECTIVE DATE- The amendments made by this section shall apply to care
  and services furnished on or after the date of the enactment of this Act.