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CMS-1403-FC P. Discussion of Chiropractic Services Demonstration In the CY 2006, CY 2007, and CY 2008 PFS final rules with comment period (70 FR 70266, 71 FR 69707, 72 FR 66325, respectively), we included a discussion of the 2-year chiropractic services demonstration that ended on March 31, 2007. This demonstration was required by section 651 of the MMA to evaluate the feasibility and advisability of covering chiropractic services under Medicare. These services extended beyond the current coverage for manipulation to care for neuromusculoskeletal conditions typical among eligible beneficiaries, and covered diagnostic and other services that a chiropractor was legally authorized to perform by the State or jurisdiction in which the treatment was provided. The demonstration was conducted in four sites, two rural and two urban. The demonstration was required to be budget neutral as the statute requires the Secretary to ensure that the aggregate payment made under the Medicare program does not exceed the amount which would be paid in the absence of the demonstration. Ensuring BN requires that the Secretary develop a strategy for recouping funds should the demonstration result in costs higher than those that would occur in the absence of the demonstration. As we stated in the CY 2006 706

CMS-1403-FC and CY 2007 PFS final rules with comment period, we would make adjustments to the chiropractor fees under the Medicare PFS to recover aggregate payments under the demonstration in excess of the amount estimated to yield BN. We will assess BN by determining the change in costs based on a pre- and post-comparison of aggregate payments and the rate of change for specific diagnoses that were treated by chiropractors and physicians in the demonstration sites and control sites. Because the aggregate payments under the expanded chiropractor services may have an impact on other Medicare expenditures, we will not limit our analysis to reviewing only chiropractor claims. Any needed reduction to chiropractor fees under the PFS would be made in the CY 2010 and CY 2011 physician fee schedules as it will take approximately 2 years after the demonstration ends to complete the claims analysis. If we determine that the adjustment for BN is greater than 2 percent of spending for the chiropractor fee schedule codes (comprised of the 3 currently covered CPT codes 98940, 98941, and 98942), we would implement the adjustment over a 2-year period. However, if the adjustment is less than 2 percent of spending under the chiropractor fee schedule codes, we would implement the adjustment over a 707

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

P. Discussion of Chiropractic Services Demonstration<br />

In the CY 2006, CY 2007, and CY 2008 PFS final rules<br />

with comment period (70 FR 70266, 71 FR 69707, 72 FR 66325,<br />

respectively), we included a discussion of the 2-year<br />

chiropractic services demonstration that ended on<br />

March 31, 2007. <strong>This</strong> demonstration was required by section<br />

651 of the MMA to evaluate the feasibility and advisability<br />

of covering chiropractic services under Medicare. These<br />

services extended beyond the current coverage for<br />

manipulation to care for neuromusculoskeletal conditions<br />

typical among eligible beneficiaries, and covered<br />

diagnostic and other services that a chiropractor was<br />

legally authorized to perform by the State or jurisdiction<br />

in which the treatment was provided. The demonstration was<br />

conducted in four sites, two rural and two urban. The<br />

demonstration was required to be budget neutral as the<br />

statute requires the Secretary to ensure that the aggregate<br />

payment made under the Medicare program does not exceed the<br />

amount which would be paid in the absence of the<br />

demonstration.<br />

Ensuring BN requires that the Secretary develop a<br />

strategy for recouping funds should the demonstration<br />

result in costs higher than those that would occur in the<br />

absence of the demonstration. As we stated in the CY 2006<br />

706

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