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

CF, and specified that the CFs for CY 2010 and subsequent<br />

years must be computed as if the increases for CYs 2007,<br />

2008, and 2009 had never applied.<br />

1. Calculation under Current Law<br />

Under section 1848(d)(4)(B) of the Act, the UAF for a<br />

year beginning with CY 2001 is equal to the sum of the<br />

following--<br />

● Prior Year Adjustment Component. An amount<br />

determined by--<br />

+ Computing the difference (which may be positive or<br />

negative) between the amount of the allowed expenditures<br />

for physicians' services for the prior year (the year prior<br />

to the year for which the update is being determined) and<br />

the amount of the actual expenditures for those services<br />

for that year;<br />

+ Dividing that difference by the amount of the<br />

actual expenditures for those services for that year; and<br />

+ Multiplying that quotient by 0.75.<br />

● Cumulative Adjustment Component. An amount<br />

determined by--<br />

+ Computing the difference (which may be positive or<br />

negative) between the amount of the allowed expenditures<br />

for physicians' services from April 1, 1996, through the<br />

950

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