Medicare Physician Payment Fairness Act of 2001

Medicare Physician Payment Fairness Act of 2001 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to set the conversion factor (update) for payments under the Medicare physician fee schedule for 2002 at 0.9 percent less than the conversion factor for 2001. Declares that this conversion factor and a specified update adjustment factor for a year after 2002 shall be applied as if this Act had not been in effect.

Directs the Medicare Payment Advisory Commission (MEDPAC) to study and report to Congress on replacing the use of the sustainable growth rate as a factor in determining the update for such payments with a factor that more fully accounts for changes in the unit costs of providing physicians' services.

[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1707 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
                                S. 1707

 To amend title XVIII of the Social Security Act to specify the update 
for payments under the medicare physician fee schedule for 2002 and to 
 direct the Medicare Payment Advisory Commission to conduct a study on 
    replacing the use of the sustainable growth rate as a factor in 
              determining such update in subsequent years.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           November 15, 2001

    Mr. Jeffords (for himself, Mr. Breaux, Mr. Kyl, Mr. Kerry, Mr. 
 Bingaman, Mr. Smith of Oregon, Mr. Frist, Mr. Warner, Mr. Helms, Mr. 
Harkin, Ms. Collins, Mr. Shelby, Ms. Snowe, and Mrs. Murray) introduced 
the following bill; which was read twice and referred to the Committee 
                               on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend title XVIII of the Social Security Act to specify the update 
for payments under the medicare physician fee schedule for 2002 and to 
 direct the Medicare Payment Advisory Commission to conduct a study on 
    replacing the use of the sustainable growth rate as a factor in 
              determining such update in subsequent years.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Physician Payment Fairness 
Act of 2001''.

SEC. 2. SPECIFICATION OF THE UPDATE FOR PAYMENTS UNDER THE MEDICARE 
              PHYSICIAN FEE SCHEDULE FOR 2002.

    (a) In General.--Section 1848(d) of the Social Security Act (42 
U.S.C. 1395w-4(d)) is amended by adding at the end the following new 
paragraph:
            ``(5) Conversion factor for 2002.--
                    ``(A) In general.--The conversion factor 
                established under this subsection for 2002 shall be 0.9 
                percent less than the conversion factor established 
                under this subsection for 2001.
                    ``(B) No effect for subsequent periods.--The 
                conversion factor under paragraph (1) and the update 
                adjustment factor under paragraph (4)(B) for a year 
                after 2002 shall be applied and computed as if 
                subparagraph (A) had not been in effect.
                    ``(C) Conforming provisions to ensure no effect for 
                subsequent periods.--In carrying out subparagraph (B):
                            ``(i) No effect on target for allowed 
                        expenditures.--The allowed expenditures under 
                        paragraph (4)(C)(iii) for years after 2002 
                        shall be applied and computed as if 
                        subparagraph (A) had not been in effect.
                            ``(ii) Removal of additional expenditures 
                        from actual expenditures.--In applying 
                        paragraph (4)(B) for years beginning with 2003, 
                        the actual expenditures for 2002 shall be the 
                        actual expenditures otherwise determined 
                        multiplied by the ratio of (I) the amount of 
                        the conversion factor that would have applied 
                        for 2002 under this subsection but for this 
                        paragraph, to (II) the amount of the conversion 
                        factor that is applied for 2002 under this 
                        paragraph.
                            ``(iii) Not treated as change in law and 
                        regulation in sustainable growth rate 
                        determination.--The enactment of this paragraph 
                        shall not be treated as a change in law for 
                        purposes of applying subsection (f)(2)(D).''.
    (b) Conforming Amendments.--Section 1848(d) of the such Act (42 
U.S.C. 1395w-4(d)(4)) is amended--
            (1) in paragraph (1)(A), by inserting ``and subject to 
        paragraph (5)'' after ``with 2001'';
            (2) in paragraph (4)(A), by inserting ``(including 
        paragraph (5))'' after ``unless otherwise provider by law'';
            (3) in paragraph (4)(B), by inserting ``and subparagraphs 
        (B) and (C) of paragraph (5)'' after ``subparagraph (D)'' in 
        the matter preceding clause (i); and
            (4) in subparagraph (4)(C)(iii), by striking ``The allowed 
        expenditures'' and inserting ``Subject to paragraph (5)(C)(i), 
        the allowed expenditures''.

SEC. 3. STUDY AND REPORT BY MEDPAC ON REPLACING THE USE OF THE 
              SUSTAINABLE GROWTH RATE AS A FACTOR IN DETERMINING THE 
              UPDATE FOR PAYMENTS UNDER THE MEDICARE PHYSICIAN FEE 
              SCHEDULE.

    (a) Study.--The Medicare Payment Advisory Commission shall conduct 
a study on replacing the use of the sustainable growth rate (as 
determined under subsection (f) of section 1848 of the Social Security 
Act (42 U.S.C. 1395w-4)) as a factor in determining the update for 
payments under the medicare physician fee schedule under such section 
with a factor that more fully accounts for changes in the unit costs of 
providing physicians' services.
    (b) Report to Congress.--Not later than March 1, 2002, the 
Commission shall submit to Congress a report on the study conducted 
under subsection (a) together with such recommendations for legislation 
and administrative action as the Commission determines appropriate.
                                 <all>