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

professionals who would be affected. However, we recognize<br />

that over time changes in demographics or local economic<br />

conditions may lead us to conduct a more comprehensive<br />

examination of existing payment localities, and<br />

consideration of potential alternatives.<br />

Payment Locality Approaches Discussed in the CY 2008 PFS<br />

Proposed Rule<br />

For the past several years, we have <strong>been</strong> involved in<br />

discussions with California physicians and their<br />

representatives about recent shifts in relative<br />

demographics and economic conditions among a number of<br />

counties within the current California payment locality<br />

structure. In the CY 2008 PFS proposed rule, we described<br />

three options for changing the payment localities in<br />

California. For a detailed discussion of the options for<br />

changing the payment localities in California, see the CY<br />

2008 PFS proposed rule and final rule with comment period<br />

(72 FR 38139 and 72 FR 66245, respectively).<br />

After evaluating the comments on these options, which<br />

included MedPAC’s two suggestions for developing changes in<br />

payment localities for the entire country (not just<br />

California), other States expressing interest in having<br />

their payment localities reconfigured, and the California<br />

Medical Association’s decision not to endorse any option,<br />

82

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