2006 proposed fee schedule - American Society of Clinical Oncology

I. Background
[If you choose to comment on issues in this section, please
include the caption “BACKGROUND” at the beginning of your
comments.]
A. Introduction
Since January 1, 1992, Medicare has paid for
physicians' services under section 1848 of the Social
Security Act (the Act), "Payment for Physicians' Services."
The Act requires that payments under the physician fee
schedule (PFS) be based on national uniform relative value
units (RVUs) based on the resources used in furnishing a
service. Section 1848(c) of the Act requires that national
RVUs be established for physician work, practice expense
(PE), and malpractice expense. Prior to the establishment
of the resource-based relative value system, Medicare
payment for physicians’ services was based on reasonable
charges.
B. Development of the Relative Value System
1. Work RVUs
The concepts and methodology underlying the PFS were
enacted as part of the Omnibus Budget Reconciliation Act
(OBRA) of 1989, Pub. L. 101-239, and OBRA 1990,
(Pub. L. 101 – 508). The final rule, published November 25,
1991 (56 FR 59502), set forth the fee schedule for payment
for physicians’ services beginning January 1, 1992.
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