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

The separate work BN adjustor did not impact payment<br />

for the TC of imaging services, since this portion of the<br />

service does not have work RVUs. When the BN adjustment is<br />

made to the CF as required under section 133(b) of MIPAA,<br />

however, the adjustment does lower payments for the TC of<br />

imaging services. Because the reduction to the CF lowers<br />

the payments for the TC of imaging services, there are less<br />

aggregate savings resulting from the OPPS payment cap under<br />

section 5102 of the DRA with the BN adjustment to the CF<br />

than there are with the separate work BN adjustment. <strong>This</strong><br />

is because services will be paid at the OPPS rate both<br />

before and after the application of the BN adjustment,<br />

resulting in no BN savings from these services. We<br />

estimate that the reduction in aggregate savings will be<br />

approximately $0.2 billion in 2009. In other words,<br />

Medicare expenditures in the aggregate will increase by<br />

$0.2 billion relative to what would have occurred in the<br />

absence of section 133(b) of the MIPPA.<br />

As stated earlier, section 1848(c)(2)(B)(ii)(II) of<br />

the Act requires that increases or decreases in RVUs may<br />

not cause the amount of expenditures for the year to differ<br />

by more than $20 million from what expenditures would have<br />

<strong>been</strong> in the absence of these changes. If this threshold is<br />

exceeded, we must make adjustments to preserve BN. We<br />

978

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