2006 proposed fee schedule - American Society of Clinical Oncology

B. Geographic Practice Cost Indices (GPCIs)
[If you choose to comment on issues in this section, please
include the caption “GPCIs” at the beginning of your
comments.]
Section 1848(e)(1)(A) of the Act requires us to develop
separate GPCIs to measure resource cost differences among
localities compared to the national average for each of the
three fee schedule components. While requiring that the
practice expense and malpractice GPCIs reflect the full
relative cost differences, section 1848(e)(1)(A)(iii) of the
Act requires that the physician work GPCIs reflect only one-
quarter of the relative cost differences compared to the
national average.
Section 1848(1)(E) of the Act, as amended by section
412 of the MMA, established a floor of 1.0 for the work GPCI
for any locality where the GPCI would otherwise fall below
1.0. This 1.0 work GPCI floor was used for purposes of
payment for services furnished on or after January 1, 2004
and before January 1, 2007. This 1.0 floor will remain in
effect in 2006.
Section 602 of the MMA added section 1848(e)(1)(G) of
the Act, which sets a floor of 1.67 for the work, practice
expense, and malpractice GPCIs for services furnished in
Alaska between January 1, 2004 and December 31, 2005 for any
locality where the GPCI would otherwise fall below 1.67.
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