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

Actual08 = Estimated Actual Expenditures for CY 2008 =<br />

$94.4 billion<br />

Target 4/96-12/08 = Allowed Expenditures from 4/1/1996 -<br />

12/31/2008 = $863.7 billion<br />

Actual 4/96-12/08 = Estimated Actual Expenditures from 4/1/1996<br />

- 12/31/2008 = $926.8 billion<br />

SGR09 = 7.4 percent (1.074)<br />

Section 1848(d)(4)(D) of the Act indicates that the<br />

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

year may not be less than -0.07 or greater than 0.03.<br />

Since -0.266 is less than -0.07, the UAF for CY 2009 will<br />

be -0.07.<br />

$ 86.<br />

8<br />

−<br />

$ 94.<br />

4<br />

$ 94.<br />

4<br />

0.<br />

75<br />

Section 1848(d)(4)(A)(ii) of the Act indicates that<br />

1.0 should be added to the UAF determined under section<br />

1848(d)(4)(B) of the Act. Thus, adding 1.0 to -0.07 makes<br />

the UAF equal to 0.93.<br />

$ 863.<br />

7<br />

$ 94.<br />

4<br />

$ 926.<br />

8<br />

1.<br />

074<br />

VIII. Allowed Expenditures for Physicians' Services and<br />

the Sustainable Growth Rate (SGR)<br />

×<br />

A. Medicare Sustainable Growth Rate<br />

+<br />

0.<br />

33<br />

= −26.<br />

6%<br />

The SGR is an annual growth rate that applies to<br />

physicians’ services paid by Medicare. The use of the SGR<br />

is intended to control growth in aggregate Medicare<br />

−<br />

×<br />

×<br />

955

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