–500 million dollars is transferred from the Hospital Trust Fund (Part A of Medicare) to conduct demonstration projects to test alternative funding formulas for hospitals.
–The Medicare Advisory Board is to recommend to Congress and the President ways to slow the growth in national health expenditures while preserving or enhancing quality of care.
–Psychiatric units and psychiatric hospitals are to develop and report quality measures. For those failing to report, their Medicare reimbursements will be reduced by 2%. Quality data is to be made available to the public.
–Those exposed to environmental health hazards, such as asbestos, will be eligible for Medicare.