2006 proposed fee schedule - American Society of Clinical Oncology

Step 6--Weighted Average of RVUs for Procedures Performed by
More than One Specialty
For codes that are performed by more than one
specialty, a weighted average PE is calculated based on
Medicare frequency data of all specialties performing the
procedure as shown in Table 6.
TABLE 6--Weight Averaging for All Specialties
Standard Methodology
Practice Expense
Value
Percent of Total
Allowed Services
(A) (B)
(a) Specialty Total Practice Expense $390.12 83
(b) Weighted Avg. - All Other Specialties $929.87 17
(c) Weighted Avg. - All Specialties $481.70 100
Step 7--Budget Neutrality and Final RVU Calculation
The total scaled direct and indirect inputs are then
adjusted by a budget neutrality factor to calculate RVUs.
Section 1848(c)(2)(B)(ii)(II) of the Act provides that
adjustments in RVUs may not cause total PFS payments to
differ by more than $20 million from what they would have
been if the adjustments were not made. Budget neutrality
for the upcoming year is determined relative to the sum of
PE RVUs for the current year. Although the PE RVUs for any
particular code may vary from year-to-year, the sum of PE
RVUs across all codes is set equal to the current year. The
budget neutrality factor (BNF) is equal to the sum of the
current year's PE RVUs, divided by the sum of the direct and
indirect inputs across all codes for the upcoming year. The
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