Rural Equity Medicare Act of 2002

Rural Equity Medicare Act of 2002 - Amends title XVIII (Medicare) of the Social Security Act (SSA), the Medicare, Medicaid, and SCHIP Benefits Improvement and Protection Act of 2000 (BIPA), and other Federal law to revise Medicare payments for rural and other health care providers, including those for inpatient critical access hospital services, home health care, and hospice care.

Amends SSA title XI to provide that any remuneration in the form of an agreement between a public or non-profit private health center and any individual or entity providing goods or services to the health center is not a violation of the anti-kickback statute if such agreement contributes to the ability of the health center to maintain or increase the availability or quality of services provided to a medically underserved population.

Amends SSA title XVIII to: (1) replace current demonstration projects under Medicare part B (Supplementary Medical Insurance) with a permanent program for competitive acquisition of certain items and services; (2) extend the moratorium on the cap on therapy expenses for purposes of payment of Medicare benefits; and (3) provide for Medicare coverage of a free initial preventive physical examination.

Amends BIPA to specify that the prohibition on exceptions to the composite rate would not apply to pediatric renal facilities that, as of October 1, 2002, do not have an exception rate.

Amends SSA title XVIII to: (1) exclude payment for screening mammography and unilateral and bilateral diagnostic mammography from the prospective payment system for hospital outpatient services; (2) waive the Medicare part B late enrollment penalty, beginning in January 2003, for certain military retirees who demonstrate they are covered beneficiaries; and (3) provide Medicare coverage of cholesterol and other blood lipid screening tests.

Directs the Secretary of Health and Human Services to establish the OASIS Task Force to examine the data collection and reporting requirements under the Outcome and Assessment Information Set (OASIS).

Amends SSA title XVIII to: (1) revise the treatment of occasional absences in determining whether an individual is confined to the home; and (2) provide for the redistribution of unused resident positions.

Directs the Secretary to issue final written guidance concerning the application of the prohibition in title VI of the Civil Rights Act of 1964 against national origin discrimination as it affects the access of persons with limited English proficiency to Medicare health care services.