2006 proposed fee schedule - American Society of Clinical Oncology

historical allowed charges. This legislation stated that
the revised PE methodology must consider the staff,
equipment, and supplies used in the provision of various
medical and surgical services in various settings beginning
in 1998. The Secretary has interpreted this to mean that
Medicare payments for each service would be based on the
relative PE resources typically involved with performing the
service.
The initial implementation of resource-based PE RVUs
was delayed until January 1, 1999, by section 4505(a) of the
BBA 1997. In addition, section 4505(b) of the BBA 1997
required the new payment methodology be phased-in over 4
years, effective for services furnished in CY 1999, and
fully effective in CY 2002. The first step toward
implementation called for by the statute was to adjust the
PE values for certain services for CY 1998. Section 4505(d)
of BBA 1997 required that, in developing the resource-based
PE RVUs, the Secretary must:
● Use, to the maximum extent possible, generally
accepted cost accounting principles that recognize all
staff, equipment, supplies, and expenses, not solely those
that can be linked to specific procedures.
● Develop a refinement method to be used during the
transition.
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