2006 proposed fee schedule - American Society of Clinical Oncology

168
0.9000. The current wage areas used for adjusting composite
rate payments have only 83 areas with wage index values
below 0.9000.
Given that the distribution of wage index values has
changed so significantly, we are proposing to reduce the
floor to 0.8500 for CY 2006 and to 0.8000 for CY 2007 as we
transition to the new geographic areas and wage indexes.
This would result in application of the wage index floor to
17.7 percent of facilities that would otherwise have been
subject to the current 0.9000 floor in CY 2006 and to 10.0
percent of facilities in CY 2007. It would also protect 86
geographic areas at a floor of 0.8500 in CY 2006 and 36
geographic areas at a floor of 0.8000 in CY 2007.
Although we are proposing to maintain a wage index
floor through CY 2007, our goal is to eliminate the wage
index floor in the future. Therefore, for CY 2008 we would
re-evaluate the need for continuing the floor. We are
soliciting comment on this issue, especially in light of the
fact the any wage index changes must be budget neutral for
aggregate payments to facilities.
(4) Transition Period
Section 623(d) of MMA added section 1881(b)(12)(D) of
the Act which requires that any revisions to the geographic
adjustments applied to the composite payment rate must be
phased-in over a multiyear period. In determining the best