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CMS-1403-FC that is three percent higher than otherwise is applicable under this section. (ii) The service-level base rate is then adjusted by the GAF. Compare this amount to the actual charge. The lesser of the actual charge or the GAF adjusted base rate amount is added to the lesser of the actual mileage charges or the payment rate per mile, multiplied by the number of miles that the beneficiary was transported. When applicable, the appropriate RAF is applied to the ground mileage rate to determine the appropriate payment rates. The RVU scale for the ambulance fee schedule is as follows: * * * * * (h) Treatment of certain areas for payment for air ambulance services. Any area that was designated as a rural area for purposes of making payments under the ambulance fee schedule for air ambulance services furnished on December 31, 2006, must be treated as a rural area for purposes of making payments under the ambulance fee schedule for air ambulance services furnished during the period July 1, 2008 through December 31, 2009. Subpart K--Payment for Drugs and Biologicals Under Part B 31. Section 414.904 is amended by revising paragraphs (b)(2), (c)(2), (d)(3), and (e)(1)(i) to read as follows: §414.904 Average sales price as the basis for payment. 1128

CMS-1403-FC * * * * * (b) * * * (2) Calculation of the average sales price. (i) For dates of service before April 1, 2008, the average sales price is determined by-- (A) Computing the sum of the products (for each National Drug Code assigned to the drug products) of the manufacturer's average sales price and the total number of units sold; and (B) Dividing that sum by the sum of the total number of units sold for all NDCs assigned to the drug products. (ii) For dates of service on or after April 1, 2008, the average sales price is determined by-- (A) Computing the sum of the products (for each National Drug Code assigned to such drug products) of the manufacturer's average sales price, determined by the Secretary without dividing such price by the total number of billing units for the National Drug Code for the billing and payment code and the total number of units sold; and (B) Dividing the sum determined under clause (A) by the sum of the products (for each National Drug Code assigned to such drug products) of the total number of units sold and the total number of billing units for the National Drug Code for the billing and payment code. 1129

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

that is three percent higher than otherwise is applicable<br />

under this section.<br />

(ii) The service-level base rate is then adjusted by<br />

the GAF. Compare this amount to the actual charge. The<br />

lesser of the actual charge or the GAF adjusted base rate<br />

amount is added to the lesser of the actual mileage charges<br />

or the payment rate per mile, multiplied by the number of<br />

miles that the beneficiary was transported. When<br />

applicable, the appropriate RAF is applied to the ground<br />

mileage rate to determine the appropriate payment rates.<br />

The RVU scale for the ambulance fee schedule is as follows:<br />

* * * * *<br />

(h) Treatment of certain areas for payment for air<br />

ambulance services. Any area that was designated as a<br />

rural area for purposes of making payments under the<br />

ambulance fee schedule for air ambulance services furnished<br />

on December 31, 2006, must be treated as a rural area for<br />

purposes of making payments under the ambulance fee<br />

schedule for air ambulance services furnished during the<br />

period July 1, 2008 through December 31, 2009.<br />

Subpart K--Payment for Drugs and Biologicals Under Part B<br />

31. Section 414.904 is amended by revising paragraphs<br />

(b)(2), (c)(2), (d)(3), and (e)(1)(i) to read as follows:<br />

§414.904 Average sales price as the basis for payment.<br />

1128

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