2006 proposed fee schedule - American Society of Clinical Oncology

2006 proposed fee schedule - American Society of Clinical Oncology 2006 proposed fee schedule - American Society of Clinical Oncology

19.02.2013 Views

statistical areas (MSAs) or their equivalents, and areas 140 outside of MSAs in each State, respectively. (51 FR 29411) Section 4201(a)(2) of OBRA 1990 (Pub. L. 101-508) froze the composite payment rates, and the basis for their calculation, at the level in effect as of September 30, 1990 (except for subsequent statutory updates that did not affect the data used to calculate wage indexes). The OBRA 1990 restriction on revising the ESRD composite payment rates has had another effect. ESRD facilities located in counties classified as rural based on the 1980 Census, but which subsequently are classified as urban, are still considered rural for purposes of determining whether urban or rural composite payment rates apply. The rural rates are generally lower than those for urban ESRD facilities. In addition, restrictions also apply to the wage index values used to compute the ESRD composite payment rates. Payments to facilities in areas where labor costs fall below 90 percent of the national average, or exceed 130 percent of that average, are not adjusted beyond the 90 percent or 130 percent level. (See the Prospective Reimbursement for Dialysis Services and Approval of Special Purpose Renal Dialysis Facilities final rule (48 FR 21254) and the Composite Rates and Methodology for Determining the Rates final notice (51 FR 29404)). This effectively means that ESRD facilities located in areas with wage index values less

141 than 0.9000 are paid more than they would otherwise receive if we fully adjusted for area wage differences. Conversely, facilities in locales with wage index values greater than 1.3000 are paid less than they would receive if we fully adjusted the rates based on actual wage levels. Section 1881(b)(12)(D) of the Act, as amended by section 623(d) of the MMA, gave the Secretary the discretionary authority to revise the current wage index. That provision also requires that any revised measure be phased-in over a multiyear period. In the November 15, 2004 final rule establishing new case-mix adjusted composite payment rates (69 FR 66332), we stated that we were deferring replacing the current wage index pending further assessment. We have completed our review, and believe that modernizing the current ESRD wage index is a matter of some urgency. After further analysis we are proposing to use OMB’s revised geographic definitions announced in OMB Bulletin No. 03-04, issued June 6, 2003. These new definitions are known as Core-Based Statistical Areas (CBSAs). In conjunction with the CBSAs, we are also proposing to recalculate the ESRD wage indexes based on acute care hospital wage and employment data for FY 2002, as reported to us in connection with the development of the wage index used in the inpatient hospital prospective payment system (IPPS). In addition, we are also proposing

statistical areas (MSAs) or their equivalents, and areas<br />

140<br />

outside <strong>of</strong> MSAs in each State, respectively. (51 FR 29411)<br />

Section 4201(a)(2) <strong>of</strong> OBRA 1990 (Pub. L. 101-508) froze<br />

the composite payment rates, and the basis for their<br />

calculation, at the level in effect as <strong>of</strong> September 30, 1990<br />

(except for subsequent statutory updates that did not affect<br />

the data used to calculate wage indexes). The OBRA 1990<br />

restriction on revising the ESRD composite payment rates has<br />

had another effect. ESRD facilities located in counties<br />

classified as rural based on the 1980 Census, but which<br />

subsequently are classified as urban, are still considered<br />

rural for purposes <strong>of</strong> determining whether urban or rural<br />

composite payment rates apply. The rural rates are<br />

generally lower than those for urban ESRD facilities.<br />

In addition, restrictions also apply to the wage index<br />

values used to compute the ESRD composite payment rates.<br />

Payments to facilities in areas where labor costs fall below<br />

90 percent <strong>of</strong> the national average, or exceed 130 percent <strong>of</strong><br />

that average, are not adjusted beyond the 90 percent or 130<br />

percent level. (See the Prospective Reimbursement for<br />

Dialysis Services and Approval <strong>of</strong> Special Purpose Renal<br />

Dialysis Facilities final rule (48 FR 21254) and the<br />

Composite Rates and Methodology for Determining the Rates<br />

final notice (51 FR 29404)). This effectively means that<br />

ESRD facilities located in areas with wage index values less

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