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

would be simpler to not have any anti-markup provisions<br />

beyond what existed prior to the CY 2008 PFS final rule<br />

with comment period, but we remain convinced that<br />

additional rulemaking is necessary to address the potential<br />

for overutilization through unnecessary testing. Likewise,<br />

we agree that it would be simpler to adopt the approach, as<br />

suggested by one commenter, that we not allow any<br />

reassignment of diagnostic testing services and, instead,<br />

require direct billing, but, without studying that approach<br />

further, we have concerns that doing so may unnecessarily<br />

prevent nonabusive arrangements. Thus, the resulting rule<br />

presents some complexity in order to both allow flexibility<br />

for the industry while implementing statutory intent and<br />

addressing our concerns of the potential for<br />

overutilization and patient abuse. To some extent, we have<br />

simplified the anti-markup provisions in §414.50 by<br />

deleting superfluous references to purc<strong>has</strong>ed TCs and PCs as<br />

bases for imposing an anti-markup payment limitation, for<br />

the reasons discussed above and more fully below at<br />

II.N.2.h.<br />

Comment: A commenter recommended that we finalize a<br />

combination of both Alternative 1 and Alternative 2, so<br />

that in order for the anti-markup provision to not apply,<br />

an employee or contractor physician should work solely for<br />

431

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