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CMS-1403-FC IX. Anesthesia and Physician Fee Schedule Conversion Factors for CY 2009 The CY 2009 PFS CF is $36.0666. The CY 2009 national average anesthesia CF is $20.9150. A. Physician Fee Schedule Conversion Factor The PFS CF for a year is calculated in accordance with section 1848(d)(1)(A) of the Act by multiplying the previous year’s CF by the PFS update. The formula for calculating the PFS update is set forth in section 1848(d)(4)(A) of the Act. In general, the PFS update is determined by multiplying the CF for the previous year by the percentage increase in the MEI times the update adjustment factor (UAF), which is calculated as specified under section 1848(d)(4)(B) of the Act. However, section 101 of the MIEA-TRHCA provided a 1-year increase in the CY 2007 CF and specified that the CF for CY 2008 must be computed as if the 1-year increase had never applied. Section 101 of the MMSEA provided a 6-month increase in the CY 2008 CF, from January 1, 2008, through June 30, 2008, and specified that the CF for the remaining portion of 2008 and the CFs for CY 2009 and subsequent years must be computed as if the 6-month increase had never applied. Section 131 of the MIPPA extended the MMSEA increase in the CY 2008 CF that was applicable to the first half of the 974

CMS-1403-FC year to the entire year, provided 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 percentage increase in the MEI is equal to 1.6 percent (1.016). The UAF is -7.0 percent (0.930). If section 131 of the MIPPA had not been enacted, the CY 2009 CF update would have been -15.1 percent, which is the product of the published CY 2008 update (0.89896), the percentage increase in the MEI (1.016), and the UAF (0.930). Section 131 of the MIPPA provided a 1.1 percent increase in the CY 2009 CF. Consistent with section 131 of the MIPPA, the update for CY 2009 is 1.1 percent. Budget Neutrality Adjustment: Section 133(b) of the MIPPA Section 1848(c)(2)(B)(i) of the Act requires that we review the RVUs no less often than every 5 years. Section 1848(c)(2)(B)(ii)(II) of the Act requires that increases or decreases in RVUs for a year may not cause the amount of expenditures for the year to differ by more than $20 million from what expenditures would have been in the 975

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

year to the entire year, provided a 1.1 percent increase to<br />

the CY 2009 CF, and specified that the CFs for CY 2010 and<br />

subsequent years must be computed as if the increases for<br />

CYs 2007, 2008, and 2009 had never applied.<br />

If section 101 of the MMSEA had not <strong>been</strong> enacted, the<br />

CY 2008 CF update would have <strong>been</strong> -10.1 percent (0.89896),<br />

as published in the CY 2008 PFS final rule with comment<br />

period (72 FR 66383). For CY 2009, the percentage increase<br />

in the MEI is equal to 1.6 percent (1.016). The UAF is<br />

-7.0 percent (0.930). If section 131 of the MIPPA had not<br />

<strong>been</strong> enacted, the CY 2009 CF update would have <strong>been</strong> -15.1<br />

percent, which is the product of the published CY 2008<br />

update (0.89896), the percentage increase in the MEI<br />

(1.016), and the UAF (0.930).<br />

Section 131 of the MIPPA provided a 1.1 percent<br />

increase in the CY 2009 CF. Consistent with section 131 of<br />

the MIPPA, the update for CY 2009 is 1.1 percent.<br />

Budget Neutrality Adjustment: Section 133(b) of the MIPPA<br />

Section 1848(c)(2)(B)(i) of the Act requires that we<br />

review the RVUs no less often than every 5 years. Section<br />

1848(c)(2)(B)(ii)(II) of the Act requires that increases or<br />

decreases in RVUs for a year may not cause the amount of<br />

expenditures for the year to differ by more than<br />

$20 million from what expenditures would have <strong>been</strong> in the<br />

975

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