sec. 10. CONFORMING AMENDMENTS.

(a) Section 256(a) of BBEDCA is repealed.^[1]

(b) Section 256(b) of BBEDCA is amended by striking “origination fees under sections 438(c)(2) and 455(c) of that Act shall each be increased by 0.50 percentage point.” and inserting in lieu thereof “origination fees under sections 438(c)(2) and (6) and 455(c) and loan processing and issuance fees under section 428(f)(1)(A)(ii) of that Act 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 accruing during the period of the sequestration shall be reduced by the uniform percentage specified in that sequestration order.”.

(c) Section 256(c) of BBEDCA is repealed.^[2] 

(d) Section 256(d) of BBEDCA is amended—

(1) by redesignating paragraphs (2), (3), and (4) as paragraphs (3), (5), and (6);

(2) by amending paragraph (1) to read as follows:

“(1) Calculation of reduction in payment amounts.—To achieve the total percentage reduction in those programs required by section 252 or 253, subject to paragraph (2), and notwithstanding section 710 of the Social Security Act, OMB shall determine, and the applicable Presidential order under section 254 shall implement, the percentage reduction that shall apply, with respect to the health insurance programs under title XVIII of the Social Security Act—

“(A) in the case of parts A and B of such title, 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, 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.”.

(3) by inserting after paragraph (1) the following:

“(2) Uniform reduction rate; maximum permissible reduction.—Reductions in payments for programs and activities under such title XVIII pursuant to a sequestration order under section 254 shall be at a uniform rate, which shall not exceed 4 percent, across all such programs and activities subject to such order.”;

(4) by inserting after paragraph (3), as redesignated, the following:

“(4) Timing of subsequent sequestration order.—A sequestration order required by section 252 or 253 with respect to programs under such title XVIII 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) in paragraph (6), as redesignated, to read as follows:

“(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 part, for purposes of computing any adjustments to payment rates under such title XVIII, specifically including—

“(A) the part C growth percentage under section 1853(c)(6);

“(B) the part D annual growth rate under section 1860D-2(b)(6); and

“(C) application of risk corridors to part D payment rates under section 1860D-15(e).”; and

(6) by adding after paragraph (6), as redesignated, the following:

“(7) Exemptions from sequestration.—In addition to the programs and activities specified in section 255, the following shall be exempt from sequestration under this part:

“(A) Part d low-income subsidies.—Premium and cost-sharing subsidies under section 1860D-14 of the Social Security Act.

“(B) Part d catastrophic subsidy.—Payments under section 1860D-15(b) and (e)(2)(B) of the Social Security Act.

“(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.”.

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COUNSEL NOTES

Codification

This section is not classified to the U.S. Code. 

Endnotes

[1] Before its repeal, section 256(a) read as follows:

“(a) Automatic Spending Increases.—Automatic spending increases are increases in outlays due to changes in indexes in the following programs:

“Special milk program; and

“Vocational rehabilitation basic State grants.

“In those programs all amounts other than the automatic spending increases shall be exempt from reduction under any order issued under this part.”

[See Compilation of the Rules and Laws of the Congressional Budget Process (May 2000), Committee Print, House Budget Committee, p. 107, for the full text of the law prior to its repeal.]

[2]  Before its repeal, section 256(c) of BBEDCA read as follows:

“(c) Treatment of Foster Care and Adoption Assistance Programs.—Any order issued by the President under section 254 shall make the reduction which is otherwise required under the foster care and adoption assistance programs (established by part E of title IV of the Social Security Act) only with respect to payments and expenditures made by States in which increases in foster care maintenance payment rates or adoption assistance payment rates (or both) are to take effect during the fiscal year involved, and only to the extent that the required reduction can be accomplished by applying a uniform percentage reduction to the Federal matching payments that each such State would otherwise receive under section 474 of that Act (for such fiscal year) for that portion of the State’s payments which is attributable to the increases taking effect during that year. No State’s matching payments from the Federal Government for foster care maintenance payments or for adoption assistance maintenance payments may be reduced by a percentage exceeding the applicable domestic sequestration percentage.”

[See Compilation of the Rules and Laws of the Congressional Budget Process (May 2000), Committee Print, House Budget Committee, p. 107, for the full text of the law prior to its repeal.]

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LEGISLATIVE HISTORY NOTES

PUBLIC LAWS

Pub. L. 111–139, title I, §10, Feb. 12, 2010, 124 Stat. 8, 21 (Statutory Pay-As-You-Go Act of 2010).

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[BCR § 290]