2 U.S.C. § 906 - General and special sequestration rules

Cite as:2 U.S.C. § 906
Currency:Current through P.L. 116-135 (03/26/2020)
 
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(a) Repealed. Pub. L. 111-139, title I, §10(a), Feb. 12, 2010, 124 Stat. 21

(b) Student loans

For all student loans under part B or D of title IV of the Higher Education Act of 1965 [ 20 U.S.C. 1071 et seq., 1087a et seq.] made during the period when a sequestration order under section 904 of this title is in effect as required by section 902 or 903 of this title, origination fees under sections 438(c)(2) and (6) and 455(c) [ 20 U.S.C. 1087-1(c)(2), (6), 1087e(c) ] and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act [ 20 U.S.C. 1078(f)(1)(A)(ii) ] shall each be increased by the uniform percentage specified in that sequestration order, and, for student loans originated during the period of the sequestration, special allowance payments under section 438(b) of that Act [ 20 U.S.C. 1087-1(b) ] accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.

(c) Repealed. Pub. L. 111-139, title I, §10(c), Feb. 12, 2010, 124 Stat. 22

(d) Special rules for Medicare program

(1) Calculation of reduction in payment amounts

To achieve the total percentage reduction in those programs required by section 902 or 903 of this title, subject to paragraph (2), and notwithstanding section 710 of the Social Security Act [ 42 U.S.C. 911 ], OMB shall determine, and the applicable Presidential order under section 904 of this title shall implement, the percentage reduction that shall apply, with respect to the health insurance programs under title XVIII of the Social Security Act [ 42 U.S.C. 1395 et seq.]-

(A) in the case of parts A and B of such title [ 42 U.S.C. 1395c et seq., 1395j et seq.], to individual payments for services furnished during the one-year period beginning on the first day of the first month beginning after the date the order is issued (or, if later, the date specified in paragraph (4)); and

(B) in the case of parts C and D [ 42 U.S.C. 1395w-21 et seq., 1395w-101 et seq.], to monthly payments under contracts under such parts for the same one-year period;

such that the reduction made in payments under that order shall achieve the required total percentage reduction in those payments for that period.

(2) Uniform reduction rate; maximum permissible reduction

Reductions in payments for programs and activities under such title XVIII [ 42 U.S.C. 1395 et seq.] pursuant to a sequestration order under section 904 of this title shall be at a uniform rate, which shall not exceed 4 percent, across all such programs and activities subject to such order.

(3) Timing of application of reductions

(A) In general

Except as provided in subparagraph (B), if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for services furnished during the effective period of the order. For purposes of the previous sentence, in the case of inpatient services furnished for an individual, the services shall be considered to be furnished on the date of the individual's discharge from the inpatient facility.

(B) Payment on the basis of cost reporting periods

In the case in which payment for services of a provider of services is made under title XVIII of the Social Security Act [ 42 U.S.C. 1395 et seq.] on a basis relating to the reasonable cost incurred for the services during a cost reporting period of the provider, if a reduction is made under paragraph (1) in payment amounts pursuant to a sequestration order, the reduction shall be applied to payment for costs for such services incurred at any time during each cost reporting period of the provider any part of which occurs during the effective period of the order, but only (for each such cost reporting period) in the same proportion as the fraction of the cost reporting period that occurs during the effective period of the order.

(4) Timing of subsequent sequestration order

A sequestration order required by section 902 or 903 of this title with respect to programs under such title XVIII [ 42 U.S.C. 1395 et seq.] shall not take effect until the first month beginning after the end of the effective period of any prior sequestration order with respect to such programs, as determined in accordance with paragraph (1).

(5) No increase in beneficiary charges in assignment-related cases

If a reduction in payment amounts is made under paragraph (1) for services for which payment under part B of title XVIII of the Social Security Act [ 42 U.S.C. 1395j et seq.] is made on the basis of an assignment described in section 1842(b)(3)(B)(ii) [ 42 U.S.C. 1395u(b)(3)(B)(ii) ], in accordance with section 1842(b)(6)(B) [ 42 U.S.C. 1395u(b)(6)(B) ], or under the procedure described in section 1870(f)(1) [ 42 U.S.C. 1395gg(f)(1) ], of such Act, the person furnishing the services shall be considered to have accepted payment of the reasonable charge for the services, less any reduction in payment amount made pursuant to a sequestration order, as payment in full.

(6) Sequestration disregarded in computing payment amounts

The Secretary of Health and Human Services shall not take into account any reductions in payment amounts which have been or may be effected under this subchapter, for purposes of computing any adjustments to payment rates under such title XVIII [ 42 U.S.C. 1395 et seq.], specifically including-

(A) the part C growth percentage under section 1853(c)(6) [ 42 U.S.C. 1395w-23(c)(6) ];

(B) the part D annual growth rate under section 1860D-2(b)(6) [ 42 U.S.C. 1395w-102(b)(6) ]; and

(C) application of risk corridors to part D payment rates under section 1860D-15(e) [ 42 U.S.C. 1395w-115(e) ].

(7) Exemptions from sequestration

In addition to the programs and activities specified in section 905 of this title, the following shall be exempt from sequestration under this subchapter:

(A) Part D low-income subsidies

Premium and cost-sharing subsidies under section 1860D-14 of the Social Security Act [ 42 U.S.C. 1395w-114 ].

(B) Part D catastrophic subsidy

Payments under section 1860D-15(b) and (e)(2)(B) of the Social Security Act [ 42 U.S.C. 1395w-115(b), (e)(2)(B) ].

(C) Qualified individual (QI) premiums

Payments to States for coverage of Medicare cost-sharing for certain low-income Medicare beneficiaries under section 1933 of the Social Security Act [ 42 U.S.C. 1396u-3 ].

(e) Community and migrant health centers, Indian health services and facilities, and veterans' medical care

(1) The maximum permissible reduction in budget authority for any account listed in paragraph (2) for any fiscal year, pursuant to an order issued under section 904 of this title, shall be 2 percent.

(2) The accounts referred to in paragraph (1) are as follows:

(A) Community health centers (75-0350-0-1-550).

(B) Migrant health centers (75-0350-0-1-550).

(C) Indian health facilities (75-0391-0-1-551).

(D) Indian health services (75-0390-0-1-551).

(E) Veterans' medical care (36-0160-0-1-703).

For purposes of the preceding provisions of this paragraph, programs are identified by the designated budget account identification code numbers set forth in the Budget of the United States Government-Appendix.

(f) Treatment of child support enforcement program

Notwithstanding any change in the display of budget accounts, any order issued by the President under section 904 of this title shall accomplish the full amount of any required reduction in expenditures under sections 455 and 458 of the Social Security Act [ 42 U.S.C. 655, 658a ] by reducing the Federal matching rate for State administrative costs under such program, as specified (for the fiscal year involved) in section 455(a) of such Act, to the extent necessary to reduce such expenditures by that amount.

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