Medicare Reform Act of 1981

Medicare Reform Act of 1981 - Amends title XVIII (Medicare) of the Social Security Act to eliminate prior hospitalization as a condition of eligibility for home health care services under part A (Hospital Insurance) of such title. Eliminates confinement to home as a requirement for receiving home health care services under part B (Supplementary Medical Insurance) of such title. Includes "periodic chore services" as a home health service. Eliminates the deductible under part B. Provides coverage under part A for community mental health center services of up to: (1) ten outpatient visits annually; and (2) 60 partial hospitalization visits annually, if an individual has not exceeded the inpatient psychiatric hospital services limitations. Defines such services and sets forth conditions of any limitation on such services. Authorizes payment under the Medicare program for: (1) the cutting and removal of corns, warts, calluses, and trimming of club nails; (2) eyeglasses, hearing aids, and dentures, and examinations for the purpose of prescribing such articles; (3) immunizations; (4) to the extent and in the manner prescribed by the Secretary of Health and Human Services, drugs and biologicals on a doctor's prescription; (5) an annual routine physical; and (6) orthopedic shoes or devices. Provides for a semiannual update of the customary and prevailing charges used to determine the reasonable charges for medical services.