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Notice: This CMS-approved document has been submitted - Philips ... Notice: This CMS-approved document has been submitted - Philips ...

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CMS-1403-FC whole, this final rule with comment period would meet these requirements. We have prepared the following analysis, which together with the information provided in the rest of this preamble, meets all assessment requirements. The analysis explains the rationale for and purposes of this final rule with comment period; details the costs and benefits of the rule; analyzes alternatives; and presents the measures we will use to minimize the burden on small entities. As indicated elsewhere in this rule, we are implementing a variety of changes to our regulations, payments, or payment policies to ensure that our payment systems reflect changes in medical practice and the relative value of services. We provide information for each of the policy changes in the relevant sections of this final rule with comment period. We are unaware of any relevant Federal rules that duplicate, overlap, or conflict with this final rule with comment period. The relevant sections of this rule contain a description of significant alternatives if applicable. A. RVU Impacts 1. Resource-Based Work and PE RVUs Section 1848(c)(2)(B)(ii) of the Act requires that increases or decreases in RVUs may not cause the amount of expenditures for the year to differ by more than 1038

CMS-1403-FC $20 million from what expenditures would have been in the absence of these changes. If this threshold is exceeded, we make adjustments to preserve BN. Section 133 (b) of the MIPPA requires an alternative application of the BN adjustment that resulted from the 5-Year Review of work RVUs. The 0.8806 percent BN adjustment that is currently being applied to the work RVUs will be removed from the work RVUs and applied to the physician CF (See the CY 2008 PFS final rule with comment period (72 FR 66389) for further discussion of the BN adjustment that resulted from the 5-Year Review of Work RVUs). See sections III.E. and VII. of this final rule with comment period for more information on the provisions of section 133(b) of the MIPPA. The effect of this change on selected procedures is shown in Table 50. Table 47 shows the specialty-level impact of the work and PE RVU changes. Our estimates of changes in Medicare revenues for PFS services compare payment rates for CY 2008 with payment rates for CY 2009 using CY 2007 Medicare utilization for all years. To the extent that there are year-to-year changes in the volume and mix of services provided by physicians, the actual impact on total Medicare revenues will be different than those shown in Table 47. The 1039

<strong>CMS</strong>-1403-FC<br />

$20 million from what expenditures would have <strong>been</strong> in the<br />

absence of these changes. If this threshold is exceeded,<br />

we make adjustments to preserve BN.<br />

Section 133 (b) of the MIPPA requires an alternative<br />

application of the BN adjustment that resulted from the<br />

5-Year Review of work RVUs. The 0.8806 percent BN<br />

adjustment that is currently being applied to the work RVUs<br />

will be removed from the work RVUs and applied to the<br />

physician CF (See the CY 2008 PFS final rule with comment<br />

period (72 FR 66389) for further discussion of the BN<br />

adjustment that resulted from the 5-Year Review of Work<br />

RVUs). See sections III.E. and VII. of this final rule<br />

with comment period for more information on the provisions<br />

of section 133(b) of the MIPPA. The effect of this change<br />

on selected procedures is shown in Table 50.<br />

Table 47 shows the specialty-level impact of the work<br />

and PE RVU changes.<br />

Our estimates of changes in Medicare revenues for PFS<br />

services compare payment rates for CY 2008 with payment<br />

rates for CY 2009 using CY 2007 Medicare utilization for<br />

all years. To the extent that there are year-to-year<br />

changes in the volume and mix of services provided by<br />

physicians, the actual impact on total Medicare revenues<br />

will be different than those shown in Table 47. The<br />

1039

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