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CMS-1403-FC
the year to the entire year, provided for a 1.1 percent
increase to the CY 2009 CF, and specified that the CFs for
CY 2010 and subsequent years must be computed as if the
increases for CYs 2007, 2008, and 2009 had never applied.
If section 101 of the MMSEA had not been enacted, the
CY 2008 CF update would have been -10.1 percent (0.89896),
as published in the CY 2008 PFS final rule with comment
period (72 FR 66383). For CY 2009, the Medicare Economic
Index (MEI) is equal to 1.6 percent (1.016). The update
adjustment factor (UAF) is -7.0 percent (0.930). Our
calculations of these figures are explained below in this
section. If section 131 of the MIPPA had not been enacted,
the CY 2009 CF update would have been the -15.1 percent
(0.84941), which is the product of the published CY 2008
update (0.89896), the MEI (1.016), and the UAF (0.930).
Consistent with section 131 of the MIPPA, however, the
update for CY 2009 is 1.1 percent.
B. The Percentage Change in the Medicare Economic Index
(MEI)
The Medicare Economic Index (MEI) is authorized by
section 1842(b)(3) of the Act, which states that prevailing
charge levels beginning after June 30, 1973, may not exceed
the level from the previous year except to the extent that
the Secretary finds, on the basis of appropriate economic
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