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42 U.S.C. § 1395l — Payment of benefits
Federal law — U.S. Code and appendices · legal_authorities
Page 3023
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
1395bb, 1395cc, 1395ww, 1396a, and 1396n of this title, en-
acting provisions set out as notes under this section,
and amending provisions set out as a note under sec-
tion 1395ww of this title] shall contravene provisions of
State law relating to the practice of medicine or nurs-
ing or State law requirements or institutional require-
ments regarding the administration of anesthesia and
its medical direction or supervision.’’
REPORT ON IMMUNOSUPPRESSIVE DRUG BENEFIT
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 227(d)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–356, which required
the Secretary of Health and Human Services to submit
to Congress not later than Mar. 1, 2003, a report on the
operation of section 1000(a)(6) [title II, § 227] of Pub. L.
106–113, amending this section and section 1395x of this
title, including an analysis of impact and recommenda-
tions regarding an appropriate cost-effective method
for providing coverage of immunosuppressive drugs
under the medicare program on a permanent basis, was
repealed by Pub. L. 106–554, § 1(a)(6) [title I, § 113(b)(2)],
Dec. 21, 2000, 114 Stat. 2763, 2763A–473.
QUALITY AND UTILIZATION OF IN-HOME CARE FOR
CHRONICALLY DEPENDENT INDIVIDUALS
Pub. L. 100–360, title II, § 205(e)(2), July 1, 1988, 102
Stat. 731, directed Secretary of Health and Human
Services to take appropriate efforts to assure quality
and provide for appropriate utilization of in-home care
for chronically dependent individuals under the amend-
ments made by section 205 of Pub. L. 100–360 [amending
this section and sections 1395l, 1395n, 1395x, and 1395y of
this title], prior to repeal by Pub. L. 101–234, title II,
§ 201(a), Dec. 13, 1989, 103 Stat. 1981.
STUDY OF ALTERNAT
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Page 3023
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
1395bb, 1395cc, 1395ww, 1396a, and 1396n of this title, en-
acting provisions set out as notes under this section,
and amending provisions set out as a note under sec-
tion 1395ww of this title] shall contravene provisions of
State law relating to the practice of medicine or nurs-
ing or State law requirements or institutional require-
ments regarding the administration of anesthesia and
its medical direction or supervision.’’
REPORT ON IMMUNOSUPPRESSIVE DRUG BENEFIT
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 227(d)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–356, which required
the Secretary of Health and Human Services to submit
to Congress not later than Mar. 1, 2003, a report on the
operation of section 1000(a)(6) [title II, § 227] of Pub. L.
106–113, amending this section and section 1395x of this
title, including an analysis of impact and recommenda-
tions regarding an appropriate cost-effective method
for providing coverage of immunosuppressive drugs
under the medicare program on a permanent basis, was
repealed by Pub. L. 106–554, § 1(a)(6) [title I, § 113(b)(2)],
Dec. 21, 2000, 114 Stat. 2763, 2763A–473.
QUALITY AND UTILIZATION OF IN-HOME CARE FOR
CHRONICALLY DEPENDENT INDIVIDUALS
Pub. L. 100–360, title II, § 205(e)(2), July 1, 1988, 102
Stat. 731, directed Secretary of Health and Human
Services to take appropriate efforts to assure quality
and provide for appropriate utilization of in-home care
for chronically dependent individuals under the amend-
ments made by section 205 of Pub. L. 100–360 [amending
this section and sections 1395l, 1395n, 1395x, and 1395y of
this title], prior to repeal by Pub. L. 101–234, title II,
§ 201(a), Dec. 13, 1989, 103 Stat. 1981.
STUDY OF ALTERNATIVE OUT-OF-HOME SERVICES
Pub. L. 100–360, title II, § 205(g), July 1, 1988, 102 Stat.
731, which required Secretary of Health and Human
Services to study, and report to Congress, not later
than 18 months after July 1, 1988, on advisability of pro-
viding, to chronically dependent individuals eligible for
in-home care under amendments made by section 205 of
Pub. L. 100–360 [amending this section and sections
1395l, 1395n, 1395x, and 1395y of this title], out-of-home
services as alternative services to in-home care, was re-
pealed by Pub. L. 101–234, title II, § 201(a), Dec. 13, 1989,
103 Stat. 1981.
CONTINUATION OF COST PASS-THROUGH FOR CERTIFIED
REGISTERED NURSE ANESTHETISTS
Pub. L. 99–509, title IX, § 9320(k), as added by Pub. L.
100–485, title VI, § 608(c)(2), Oct. 13, 1988, 102 Stat. 2412,
and amended by Pub. L. 101–239, title VI, § 6132(a), Dec.
19, 1989, 103 Stat. 2222, provided that:
‘‘(1) Subject to paragraph (2), the amendments made
by this section [amending this section and sections
1395l, 1395u, 1395x, 1395y, 1395aa, 1395bb, 1395cc, 1395ww,
1396a, and 1396n of this title and provisions set out as
a note under section 1395ww of this title] shall not
apply during a year (beginning with 1989) to a hospital
located in a rural area (as defined for purposes of sec-
tion 1886(d) of the Social Security Act [42 U.S.C.
1395ww(d)]) if the hospital establishes, at any time be-
fore the year[,] to the satisfaction of the Secretary of
Health and Human Services that—
‘‘(A) as of January 1, 1988, the hospital employed or
contracted with a certified registered nurse anes-
thetist (but not more than one full-time equivalent
certified registered nurse anesthetist),
‘‘(B) in 1987 the hospital had a volume of surgical
procedures (including inpatient and outpatient proce-
dures) requiring anesthesia services that did not ex-
ceed 500 (or such higher number as the Secretary de-
termines to be appropriate), and
‘‘(C) each certified registered nurse anesthetist em-
ployed by, or under contract with, the hospital has
agreed not to bill under part B of title XVIII of such
Act [42 U.S.C. 1395j et seq.] for professional services
furnished by the anesthetist at the hospital.
‘‘(2) Paragraph (1) shall not apply in a year (after
1989) to a hospital unless the hospital establishes, be-
fore the beginning of the year, that the hospital has
had a volume of surgical procedures (including inpa-
tient and outpatient procedures) requiring anesthesia
services in the previous year that did not exceed 500 (or
such higher number as the Secretary determines to be
appropriate).’’
[Pub. L. 101–239, title VI, § 6132(b), Dec. 19, 1989, 103
Stat. 2222, provided that: ‘‘The amendments made by
this section [amending section 9320(k) of Pub. L. 99–509,
set out above] shall apply to services furnished on or
after January 1, 1990.’’]
PAYMENT FOR SERVICES OF PHYSICIANS RENDERED IN A
TEACHING HOSPITAL FOR ACCOUNTING PERIODS BEGIN-
NING AFTER JUNE 30, 1975, AND PRIOR TO OCTOBER 1,
1978; STUDIES, REPORTS, ETC.; EFFECTIVE DATES
Pub. L. 93–233, § 15(a)(2), Dec. 31, 1973, 87 Stat. 966, pro-
vided that for the cost accounting periods beginning
after June 30, 1975, and prior to Oct. 1, 1978, subsec.
(a)(2)(B)(i) of this section will be administered as if sub-
clause II of subsec. (a)(2)(B)(i) read as follows: ‘‘(II) a
physician to a patient in a hospital which has a teach-
ing program approved as specified in paragraph (6) of
section 1861(b) [42 U.S.C. 1395x(b)(6)] (including services
in conjunction with the teaching programs of such hos-
pital whether or not such patient is an inpatient of
such hospital), where the conditions specified in para-
graph (7) of such section [42 U.S.C. 1395x(b)(7)] are met
and’’.
§ 1395l. Payment of benefits
(a) Amounts
Except as provided in section 1395mm of this
title, and subject to the succeeding provisions of
this section, there shall be paid from the Fed-
eral Supplementary Medical Insurance Trust
Fund, in the case of each individual who is cov-
ered under the insurance program established by
this part and incurs expenses for services with
respect to which benefits are payable under this
part, amounts equal to—
(1) in the case of services described in sec-
tion 1395k(a)(1) of this title—80 percent of the
reasonable charges for the services; except
that (A) an organization which provides med-
ical and other health services (or arranges for
their availability) on a prepayment basis (and
either is sponsored by a union or employer, or
does not provide, or arrange for the provision
of, any inpatient hospital services) may elect
to be paid 80 percent of the reasonable cost of
services for which payment may be made
under this part on behalf of individuals en-
rolled in such organization in lieu of 80 per-
cent of the reasonable charges for such serv-
ices if the organization undertakes to charge
such individuals no more than 20 percent of
such reasonable cost plus any amounts pay-
able by them as a result of subsection (b), (B)
with respect to items and services described in
section
1395x(s)(10)(A)
of
this
title,
the
amounts paid shall be 100 percent of the rea-
sonable charges for such items and services,
(C) with respect to expenses incurred for those
physicians’ services for which payment may be
made under this part that are described in sec-
tion 1395y(a)(4) of this title, the amounts paid
shall be subject to such limitations as may be
prescribed by regulations, (D) with respect to
clinical diagnostic laboratory tests for which
payment is made under this part (i)(I) on the
basis of a fee schedule under subsection (h)(1)
Page 3024
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
1 So in original.
2 So in original. The word ‘‘and’’ probably should not appear.
(for tests furnished before January 1, 2017) or
section 1395m(d)(1) of this title, the amount
paid shall be equal to 80 percent (or 100 per-
cent, in the case of such tests for which pay-
ment is made on an assignment-related basis)
of the lesser of the amount determined under
such fee schedule, the limitation amount for
that
test
determined
under
subsection
(h)(4)(B), or the amount of the charges billed
for the tests, or (II) under section 1395m–1 of
this title (for tests furnished on or after Janu-
ary 1, 2017), the amount paid shall be equal to
80 percent (or 100 percent, in the case of such
tests for which payment is made on an assign-
ment-related basis) of the lesser of the amount
determined under such section or the amount
of the charges billed for the tests, or (ii) for
tests furnished before January 1, 2017, on the
basis of a negotiated rate established under
subsection (h)(6), the amount paid shall be
equal to 100 percent of such negotiated rate,,1
(E) with respect to services furnished to indi-
viduals who have been determined to have end
stage renal disease, the amounts paid shall be
determined subject to the provisions of section
1395rr of this title, (F) with respect to clinical
social
worker
services
under
section
1395x(s)(2)(N) of this title, the amounts paid
shall be 80 percent of the lesser of (i) the ac-
tual charge for the services or (ii) 75 percent of
the amount determined for payment of a psy-
chologist under clause (L), (G) with respect to
facility services furnished in connection with
a surgical procedure specified pursuant to sub-
section (i)(1)(A) and furnished to an individual
in an ambulatory surgical center described in
such subsection, for services furnished begin-
ning with the implementation date of a re-
vised payment system for such services in
such facilities specified in subsection (i)(2)(D),
the amounts paid, subject to subsection (i)(9),
shall be 80 percent of the lesser of the actual
charge for the services or the amount deter-
mined by the Secretary under such revised
payment system, (H) with respect to services
of a certified registered nurse anesthetist
under section 1395x(s)(11) of this title, the
amounts paid shall be 80 percent of the least of
the actual charge, the prevailing charge that
would be recognized (or, for services furnished
on or after January 1, 1992, the fee schedule
amount provided under section 1395w–4 of this
title) if the services had been performed by an
anesthesiologist, or the fee schedule for such
services established by the Secretary in ac-
cordance with subsection (l), (I) with respect
to
covered
items
(described
in
section
1395m(a)(13) of this title), the amounts paid
shall be the amounts described in section
1395m(a)(1) of this title, and 2 (J) with respect
to expenses incurred for radiologist services
(as defined in section 1395m(b)(6) of this title),
subject to section 1395w–4 of this title, the
amounts paid shall be 80 percent of the lesser
of the actual charge for the services or the
amount provided under the fee schedule estab-
lished under section 1395m(b) of this title, (K)
with respect to certified nurse-midwife serv-
ices under section 1395x(s)(2)(L) of this title,
the amounts paid shall be 80 percent of the
lesser of the actual charge for the services or
the amount determined by a fee schedule es-
tablished by the Secretary for the purposes of
this subparagraph (but in no event shall such
fee schedule exceed 65 percent of the pre-
vailing charge that would be allowed for the
same service performed by a physician, or, for
services furnished on or after January 1, 1992,
65 percent (or 100 percent for services fur-
nished on or after January 1, 2011) of the fee
schedule
amount
provided
under
section
1395w–4 of this title for the same service per-
formed by a physician), (L) with respect to
qualified psychologist services under section
1395x(s)(2)(M) of this title, the amounts paid
shall be 80 percent of the lesser of the actual
charge for the services or the amount deter-
mined by a fee schedule established by the
Secretary for the purposes of this subpara-
graph, (M) with respect to prosthetic devices
and orthotics and prosthetics (as defined in
section 1395m(h)(4) of this title), the amounts
paid shall be the amounts described in section
1395m(h)(1) of this title, (N) with respect to ex-
penses incurred for physicians’ services (as de-
fined in section 1395w–4(j)(3) of this title) other
than personalized prevention plan services (as
defined in section 1395x(hhh)(1) of this title),
the amounts paid shall be 80 percent of the
payment
basis
determined
under
section
1395w–4(a)(1) of this title, (O) with respect to
services described in section 1395x(s)(2)(K) of
this title (relating to services furnished by
physician assistants, nurse practitioners, or
clinic nurse specialists), the amounts paid
shall be equal to 80 percent of (i) the lesser of
the actual charge or 85 percent of the fee
schedule
amount
provided
under
section
1395w–4 of this title, or (ii) in the case of serv-
ices as an assistant at surgery, the lesser of
the actual charge or 85 percent of the amount
that would otherwise be recognized if per-
formed by a physician who is serving as an as-
sistant at surgery, (P) with respect to surgical
dressings, the amounts paid shall be the
amounts determined under section 1395m(i) of
this title, (Q) with respect to items or services
for which fee schedules are established pursu-
ant to section 1395u(s) of this title, the
amounts paid shall be 80 percent of the lesser
of the actual charge or the fee schedule estab-
lished in such section, (R) with respect to am-
bulance services, (i) the amounts paid shall be
80 percent of the lesser of the actual charge for
the services or the amount determined by a
fee schedule established by the Secretary
under section 1395m(l) of this title and (ii)
with respect to ambulance services described
in section 1395m(l)(8) of this title, the amounts
paid shall be the amounts determined under
section 1395m(g) of this title for outpatient
critical access hospital services, (S)(i) except
as provided in clause (ii), subject to subpara-
graph
(EE),
with
respect
to
drugs
and
biologicals (including intravenous immune
globulin (as defined in section 1395x(zz) of this
title)) not paid on a cost or prospective pay-
ment basis as otherwise provided in this part
(other than items and services described in
Page 3025
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
3 So in original. Probably should be followed by a comma.
subparagraph (B)), the amounts paid shall be
80 percent of the lesser of the actual charge or
the payment amount established in section
1395u(o) of this title (or, if applicable, under
section 1395w–3, 1395w–3a, or 1395w–3b of this
title), and (ii) with respect to insulin furnished
on or after July 1, 2023, through an item of du-
rable medical equipment covered under sec-
tion 1395x(n) of this title, the amounts paid
shall be, subject to the fourth sentence of this
subsection, 80 percent of the payment amount
established under section 1395w–3a of this title
(or section 1395w–3b of this title, if applicable)
for such insulin, (T) with respect to medical
nutrition therapy services (as defined in sec-
tion 1395x(vv) of this title), the amount paid
shall be 80 percent (or 100 percent if such serv-
ices are recommended with a grade of A or B
by the United States Preventive Services Task
Force for any indication or population and are
appropriate for the individual) of the lesser of
the actual charge for the services or 85 percent
of the amount determined under the fee sched-
ule established under section 1395w–4(b) of this
title for the same services if furnished by a
physician, (U) with respect to facility fees de-
scribed in section 1395m(m)(2)(B) of this title,
the amounts paid shall be 80 percent of the
lesser of the actual charge or the amounts
specified in such section, (V) notwithstanding
subparagraphs (I) (relating to durable medical
equipment), (M) (relating to prosthetic devices
and orthotics and prosthetics), and (Q) (relat-
ing to 1395u(s) items), with respect to competi-
tively priced items and services (described in
section 1395w–3(a)(2) of this title) that are fur-
nished in a competitive area, the amounts
paid shall be the amounts described in section
1395w–3(b)(5) of this title, (W) with respect to
additional preventive services (as defined in
section 1395x(ddd)(1) of this title), the amount
paid shall be (i) in the case of such services
which are clinical diagnostic laboratory tests,
the amount determined under subparagraph
(D) (if such subparagraph were applied, by sub-
stituting ‘‘100 percent’’ for ‘‘80 percent’’), and
(ii) in the case of all other such services, 100
percent of the lesser of the actual charge for
the service or the amount determined under a
fee schedule established by the Secretary for
purposes of this subparagraph, (X) with re-
spect to personalized prevention plan services
(as defined in section 1395x(hhh)(1) of this
title), the amount paid shall be 100 percent of
the lesser of the actual charge for the services
or the amount determined under the payment
basis determined under section 1395w–4 of this
title, (Y) subject to subsection (dd), with re-
spect to preventive services described in sub-
paragraphs (A) and (B) of section 1395x(ddd)(3)
of this title that are appropriate for the indi-
vidual and, in the case of such services de-
scribed in subparagraph (A), are recommended
with a grade of A or B by the United States
Preventive Services Task Force for any indi-
cation or population, the amount paid shall be
100 percent of (i) except as provided in clause
(ii), the lesser of the actual charge for the
services or the amount determined under the
fee schedule that applies to such services
under this part, and (ii) in the case of such
services that are covered OPD services (as de-
fined in subsection (t)(1)(B)), the amount de-
termined under subsection (t), (Z) with respect
to Federally qualified health center services
for which payment is made under section
1395m(o) of this title, the amounts paid shall
be 80 percent of the lesser of the actual charge
or the amount determined under such section,
(AA) with respect to an applicable disposable
device (as defined in paragraph (2) of section
1395m(s) of this title) furnished to an indi-
vidual pursuant to paragraph (1) of such sec-
tion, the amount paid shall be equal to 80 per-
cent of the lesser of the actual charge or the
amount determined under paragraph (3) of
such section, (BB) with respect to home infu-
sion therapy, the amount paid shall be an
amount equal to 80 percent of the lesser of the
actual charge for the services or the amount
determined under section 1395m(u) of this
title, (CC) with respect to opioid use disorder
treatment services furnished during an episode
of care, the amount paid shall be equal to the
amount payable under section 1395m(w) of this
title less any copayment required as specified
by the Secretary, (DD) with respect to a speci-
fied
COVID–19
testing-related
service
de-
scribed in paragraph (1) of subsection (cc) for
which payment may be made under a specified
outpatient payment provision described in
paragraph (2) of such subsection, the amounts
paid shall be 100 percent of the payment
amount otherwise recognized under such re-
spective specified outpatient payment provi-
sion for such service, (EE) with respect to a
part B rebatable drug (as defined in paragraph
(2) of section 1395w–3a(i) of this title) furnished
on or after April 1, 2023, for which the payment
amount for a calendar quarter under para-
graph (3)(A)(ii)(I) of such section (or, in the
case of a part B rebatable drug that is a se-
lected drug (as defined in section 1320f–1(c) of
this title for which, the payment amount de-
scribed in section 1395w–3a(b)(1)(B) of this
title) for such drug for such quarter exceeds
the inflation-adjusted payment under para-
graph (3)(A)(ii)(II) of such section for such
quarter, the amounts paid shall be equal to
the percent of the payment amount under
paragraph (3)(A)(ii)(I) of such section or sec-
tion 1395w–3a(b)(1)(B) of this title, as applica-
ble, that equals the difference between (i) 100
percent, and (ii) the percent applied under sec-
tion 1395w–3a(i)(5)(B) of this title 3 (FF) with
respect to marriage and family therapist serv-
ices and mental health counselor services
under section 1395x(s)(2)(II) of this title, the
amounts paid shall be 80 percent of the lesser
of the actual charge for the services or 75 per-
cent of the amount determined for payment of
a psychologist under subparagraph (L), (GG)
with respect to lymphedema compression
treatment
items
(as
defined
in
section
1395x(mmm) of this title), the amount paid
shall be equal to 80 percent of the lesser of the
actual charge or the amount determined under
the payment basis determined under section
1395m(z) of this title, and (HH) with respect to
items and services related to the administra-
Page 3026
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
4 See 2010 Amendment note for subsec. (a)(2)(F) to (H) below.
tion of intravenous immune globulin furnished
on or after January 1, 2024, as described in sec-
tion 1395x(zz) of this title, the amounts paid
shall be the lesser of the 80 percent of the ac-
tual charge or the payment amount estab-
lished under section 1395u(o)(8) of this title;
(2) in the case of services described in sec-
tion 1395k(a)(2) of this title (except those serv-
ices described in subparagraphs (C), (D), (E),
(F), (G), (H), and (I) of such section and unless
otherwise specified in section 1395rr of this
title)—
(A) with respect to home health services
(other than a covered osteoporosis drug) (as
defined in section 1395x(kk) of this title), the
amount determined under the prospective
payment system under section 1395fff of this
title;
(B) with respect to other items and serv-
ices (except those described in subparagraph
(C), (D), or (E) of this paragraph and except
as may be provided in section 1395ww of this
title or section 1395yy(e)(9) of this title)—
(i) furnished before January 1, 1999, the
lesser of—
(I) the reasonable cost of such services,
as determined under section 1395x(v) of
this title, or
(II) the customary charges with re-
spect to such services,
less the amount a provider may charge as
described
in
clause
(ii)
of
section
1395cc(a)(2)(A) of this title, but in no case
may the payment for such other services
exceed 80 percent of such reasonable cost,
or
(ii) if such services are furnished before
January 1, 1999, by a public provider of
services, or by another provider which
demonstrates to the satisfaction of the
Secretary that a significant portion of its
patients are low-income (and requests that
payment be made under this clause), free
of charge or at nominal charges to the
public, 80 percent of the amount deter-
mined
in
accordance
with
section
1395f(b)(2) of this title, or
(iii) if such services are furnished on or
after January 1, 1999, the amount deter-
mined under subsection (t), or
(iv) if (and for so long as) the conditions
described in section 1395f(b)(3) of this title
are met, the amounts determined under
the reimbursement system described in
such section;
(C) with respect to services described in
the second sentence of section 1395x(p) of
this title, 80 percent of the reasonable
charges for such services;
(D) with respect to clinical diagnostic lab-
oratory tests for which payment is made
under this part (i)(I) on the basis of a fee
schedule determined under subsection (h)(1)
(for tests furnished before January 1, 2017) or
section 1395m(d)(1) of this title, the amount
paid shall be equal to 80 percent (or 100 per-
cent, in the case of such tests for which pay-
ment is made on an assignment-related basis
or to a provider having an agreement under
section 1395cc of this title) of the lesser of
the amount determined under such fee
schedule, the limitation amount for that
test determined under subsection (h)(4)(B),
or the amount of the charges billed for the
tests, or (II) under section 1395m–1 of this
title (for tests furnished on or after January
1, 2017), the amount paid shall be equal to 80
percent (or 100 percent, in the case of such
tests for which payment is made on an as-
signment-related basis or to a provider hav-
ing an agreement under section 1395cc of this
title) of the lesser of the amount determined
under such section or the amount of the
charges billed for the tests, or (ii) for tests
furnished before January 1, 2017, on the basis
of a negotiated rate established under sub-
section (h)(6), the amount paid shall be equal
to 100 percent of such negotiated rate for
such tests;
(E) with respect to—
(i) outpatient hospital radiology services
(including diagnostic and therapeutic radi-
ology, nuclear medicine and CAT scan pro-
cedures, magnetic resonance imaging, and
ultrasound and other imaging services, but
excluding screening mammography and,
for services furnished on or after January
1, 2005, diagnostic mammography), and
(ii) effective for procedures performed on
or after October 1, 1989, diagnostic proce-
dures (as defined by the Secretary) de-
scribed in section 1395x(s)(3) of this title
(other than diagnostic x-ray tests and di-
agnostic laboratory tests),
the amount determined under subsection (n)
or, for services or procedures performed on
or after January 1, 1999, subsection (t);
(F) with respect to a covered osteoporosis
drug (as defined in section 1395x(kk) of this
title) furnished by a home health agency, 80
percent of the reasonable cost of such serv-
ice, as determined under section 1395x(v) of
this title;
(G) with respect to items and services de-
scribed in section 1395x(s)(10)(A) of this title,
the lesser of—
(i) the reasonable cost of such services,
as determined under section 1395x(v) of
this title, or
(ii) the customary charges with respect
to such services; and
(H) with respect to personalized prevention
plan
services
(as
defined
in
section
1395x(hhh)(1) of this title) furnished by an
outpatient department of a hospital, the
amount determined under paragraph (1)(X),
or,4 if such services are furnished by a public
provider of services, or by another provider
which demonstrates to the satisfaction of
the Secretary that a significant portion of
its patients are low-income (and requests
that payment be made under this provision),
free of charge or at nominal charges to the
public, the amount determined in accord-
ance with section 1395f(b)(2) of this title;
(3) in the case of services described in sec-
tion 1395k(a)(2)(D) of this title—
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(A) except as provided in subparagraph (B),
the costs which are reasonable and related
to the cost of furnishing such services or
which are based on such other tests of rea-
sonableness as the Secretary may prescribe
in regulations, including those authorized
under section 1395x(v)(1)(A) of this title, less
the amount a provider may charge as de-
scribed
in
clause
(ii)
of
section
1395cc(a)(2)(A) of this title, but in no case
may the payment for such services (other
than for items and services described in sec-
tion 1395x(s)(10)(A) of this title) exceed 80
percent of such costs; or
(B) with respect to the services described
in clause (ii) of section 1395k(a)(2)(D) of this
title that are furnished to an individual en-
rolled with a MA plan under part C pursuant
to a written agreement described in section
1395w–23(a)(4) of this title, the amount (if
any) by which—
(i) the amount of payment that would
have otherwise been provided (I) under
subparagraph (A) (calculated as if ‘‘100 per-
cent’’ were substituted for ‘‘80 percent’’ in
such subparagraph) for such services if the
individual had not been so enrolled, or (II)
in the case of such services furnished on or
after the implementation date of the pro-
spective payment system under section
1395m(o) of this title, under such section
(calculated as if ‘‘100 percent’’ were sub-
stituted for ‘‘80 percent’’ in such section)
for such services if the individual had not
been so enrolled; exceeds
(ii) the amount of the payments received
under such written agreement for such
services (not including any financial in-
centives provided for in such agreement
such as risk pool payments, bonuses, or
withholds),
less the amount the federally qualified health
center may charge as described in section
1395w–27(e)(3)(B) of this title;
(4) in the case of facility services described
in section 1395k(a)(2)(F) of this title, and out-
patient hospital facility services furnished in
connection with surgical procedures specified
by the Secretary pursuant to subsection
(i)(1)(A), the applicable amount as determined
under paragraph (2) or (3) of subsection (i) or
subsection (t);
(5) in the case of covered items (described in
section 1395m(a)(13) of this title) the amounts
described in section 1395m(a)(1) of this title;
(6) in the case of outpatient critical access
hospital services, the amounts described in
section 1395m(g) of this title;
(7) in the case of prosthetic devices and
orthotics and prosthetics (as described in sec-
tion 1395m(h)(4) of this title), the amounts de-
scribed in section 1395m(h) of this title;
(8) in the case of—
(A) outpatient physical therapy services,
outpatient speech-language pathology serv-
ices, and outpatient occupational therapy
services furnished—
(i) by a rehabilitation agency, public
health agency, clinic, comprehensive out-
patient rehabilitation facility, or skilled
nursing facility,
(ii) by a home health agency to an indi-
vidual who is not homebound, or
(iii) by another entity under an arrange-
ment with an entity described in clause (i)
or (ii); and
(B) outpatient physical therapy services,
outpatient speech-language pathology serv-
ices, and outpatient occupational therapy
services furnished—
(i) by a hospital to an outpatient or to a
hospital inpatient who is entitled to bene-
fits under part A but has exhausted bene-
fits for inpatient hospital services during a
spell of illness or is not so entitled to ben-
efits under part A, or
(ii) by another entity under an arrange-
ment with a hospital described in clause
(i),
the amounts described in section 1395m(k) of
this title;
(9) in the case of services described in sec-
tion 1395k(a)(2)(E) of this title that are not de-
scribed in paragraph (8), the amounts de-
scribed in section 1395m(k) of this title; and
(10) with respect to rural emergency hospital
services furnished on or after January 1, 2023,
the
amounts
determined
under
section
1395m(x) of this title.
Paragraph (3)(A) shall not apply to Federally
qualified health center services furnished on or
after the implementation date of the prospective
payment system under section 1395m(o) of this
title. For services furnished on or after January
1, 2022, paragraph (1)(Y) shall apply with respect
to a colorectal cancer screening test regardless
of the code that is billed for the establishment
of a diagnosis as a result of the test, or for the
removal of tissue or other matter or other pro-
cedure that is furnished in connection with, as a
result of, and in the same clinical encounter as
the screening test. The Secretary shall make
such adjustments as may be necessary to the
amounts paid as specified under paragraph
(1)(S)(ii) for insulin furnished on or after July 1,
2023, through an item of durable medical equip-
ment covered under section 1395x(n) of this title,
such that the amount of coinsurance payable by
an individual enrolled under this part for a
month’s supply of such insulin does not exceed
$35.
(b) Deductible provision
Before applying subsection (a) with respect to
expenses incurred by an individual during any
calendar year, the total amount of the expenses
incurred by such individual during such year
(which would, except for this subsection, con-
stitute incurred expenses from which benefits
payable under subsection (a) are determinable)
shall be reduced by a deductible of $75 for cal-
endar years before 1991, $100 for 1991 through
2004, $110 for 2005, and for a subsequent year the
amount of such deductible for the previous year
increased by the annual percentage increase in
the
monthly
actuarial
rate
under
section
1395r(a)(1) of this title ending with such subse-
quent year (rounded to the nearest $1); except
that (1) such total amount shall not include ex-
penses incurred for preventive services described
in subparagraph (A) of section 1395x(ddd)(3) of
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
5 So in original. Probably should be followed by ‘‘to’’.
this title that are recommended with a grade of
A or B by the United States Preventive Services
Task Force for any indication or population and
are appropriate for the individual.,1 (2) such de-
ductible shall not apply with respect to home
health
services
(other
than
a
covered
osteoporosis
drug
(as
defined
in
section
1395x(kk) of this title)), (3) such deductible shall
not apply with respect to clinical diagnostic lab-
oratory tests for which payment is made under
this part (A) under subsection (a)(1)(D)(i) or
(a)(2)(D)(i) on an assignment-related basis, or to
a provider having an agreement under section
1395cc of this title, or (B) for tests furnished be-
fore January 1, 2017, on the basis of a negotiated
rate determined under subsection (h)(6), (4) such
deductible shall not apply to Federally qualified
health center services, (5) such deductible shall
not apply with respect to screening mammog-
raphy (as described in section 1395x(jj) of this
title), (6) such deductible shall not apply with
respect to screening pap smear and screening
pelvic exam (as described in section 1395x(nn) of
this title), (7) such deductible shall not apply
with respect to ultrasound screening for abdom-
inal aortic aneurysm (as defined in section
1395x(bbb) of this title), (8) such deductible shall
not apply with respect to colorectal cancer
screening
tests
(as
described
in
section
1395x(pp)(1) of this title), (9) such deductible
shall not apply with respect to an initial preven-
tive physical examination (as defined in section
1395x(ww) of this title), (10) such deductible shall
not apply with respect to personalized preven-
tion
plan
services
(as
defined
in
section
1395x(hhh)(1) of this title), (11) such deductible
shall not apply with respect to any specified
COVID–19 testing-related service described in
paragraph (1) of subsection (cc) for which pay-
ment may be made under a specified outpatient
payment provision described in paragraph (2) of
such subsection, (12) such deductible shall not
apply with respect 5 a COVID–19 vaccine and its
administration
described
in
section
1395x(s)(10)(A) of this title, and (13) such deduct-
ible shall not apply with respect to insulin fur-
nished on or after July 1, 2023, through an item
of durable medical equipment covered under sec-
tion 1395x(n) of this title..1 The total amount of
the expenses incurred by an individual as deter-
mined under the preceding sentence shall, after
the reduction specified in such sentence, be fur-
ther reduced by an amount equal to the expenses
incurred for the first three pints of whole blood
(or equivalent quantities of packed red blood
cells, as defined under regulations) furnished to
the individual during the calendar year, except
that such deductible for such blood shall in ac-
cordance with regulations be appropriately re-
duced to the extent that there has been a re-
placement of such blood (or equivalent quan-
tities of packed red blood cells, as so defined);
and for such purposes blood (or equivalent quan-
tities of packed red blood cells, as so defined)
furnished such individual shall be deemed re-
placed when the institution or other person fur-
nishing such blood (or such equivalent quan-
tities of packed red blood cells, as so defined) is
given one pint of blood for each pint of blood (or
equivalent quantities of packed red blood cells,
as so defined) furnished such individual with re-
spect to which a deduction is made under this
sentence. The deductible under the previous sen-
tence for blood or blood cells furnished an indi-
vidual in a year shall be reduced to the extent
that a deductible has been imposed under sec-
tion 1395e(a)(2) of this title to blood or blood
cells furnished the individual in the year. Para-
graph (1) of the first sentence of this subsection
shall apply with respect to a colorectal cancer
screening test regardless of the code that is
billed for the establishment of a diagnosis as a
result of the test, or for the removal of tissue or
other matter or other procedure that is fur-
nished in connection with, as a result of, and in
the same clinical encounter as the screening
test.
(c) Mental disorders
(1) Notwithstanding any other provision of
this part, with respect to expenses incurred in a
calendar year in connection with the treatment
of mental, psychoneurotic, and personality dis-
orders of an individual who is not an inpatient
of a hospital at the time such expenses are in-
curred, there shall be considered as incurred ex-
penses for purposes of subsections (a) and (b)—
(A) for expenses incurred in years prior to
2010, only 621⁄2 percent of such expenses;
(B) for expenses incurred in 2010 or 2011, only
683⁄4 percent of such expenses;
(C) for expenses incurred in 2012, only 75 per-
cent of such expenses;
(D) for expenses incurred in 2013, only 811⁄4
percent of such expenses; and
(E) for expenses incurred in 2014 or any sub-
sequent calendar year, 100 percent of such ex-
penses.
(2) For purposes of subparagraphs (A) through
(D) of paragraph (1), the term ‘‘treatment’’ does
not include brief office visits (as defined by the
Secretary) for the sole purpose of monitoring or
changing drug prescriptions used in the treat-
ment of such disorders or partial hospitalization
services or intensive outpatient services that
are not directly provided by a physician.
(d) Nonduplication of payments
No payment may be made under this part with
respect to any services furnished an individual
to the extent that such individual is entitled (or
would be entitled except for section 1395e of this
title) to have payment made with respect to
such services under part A.
(e) Information for determination of amounts
due
No payment shall be made to any provider of
services or other person under this part unless
there has been furnished such information as
may be necessary in order to determine the
amounts due such provider or other person
under this part for the period with respect to
which the amounts are being paid or for any
prior period.
(f) Maximum rate of payment per visit for inde-
pendent rural health clinics
(1) In establishing limits under subsection (a)
on payment for rural health clinic services pro-
vided by rural health clinics (other than such
Page 3029
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
clinics in hospitals with less than 50 beds), the
Secretary shall establish such limit, for services
provided prior to April 1, 2021—
(A) in 1988, after March 31, at $46 per visit,
and
(B) in a subsequent year (before April 1,
2021), at the limit established under this para-
graph for the previous year increased by the
percentage increase in the MEI (as defined in
section 1395u(i)(3) of this title) applicable to
primary care services (as defined in section
1395u(i)(4) of this title) furnished as of the first
day of that year.
(2) In establishing limits under subsection (a)
on payment for rural health clinic services fur-
nished on or after April 1, 2021, by a rural health
clinic (other than a rural health clinic described
in paragraph (3)(B)), the Secretary shall estab-
lish such limit, for services provided—
(A) in 2021, after March 31, at $100 per visit;
(B) in 2022, at $113 per visit;
(C) in 2023, at $126 per visit;
(D) in 2024, at $139 per visit;
(E) in 2025, at $152 per visit;
(F) in 2026, at $165 per visit;
(G) in 2027, at $178 per visit;
(H) in 2028, at $190 per visit; and
(I) in a subsequent year, at the limit estab-
lished under this paragraph for the previous
year increased by the percentage increase in
the MEI applicable to primary care services
furnished as of the first day of such subse-
quent year.
(3)(A) In establishing limits under subsection
(a) on payment for rural health clinic services
furnished on or after April 1, 2021, by a rural
health clinic described in subparagraph (B), the
Secretary shall establish such limit, with re-
spect to each such rural health clinic, for serv-
ices provided—
(i) in 2021, after March 31, at an amount
equal to the greater of—
(I) with respect to a rural health clinic
that had a per visit payment amount estab-
lished for services furnished in 2020—
(aa) the per visit payment amount appli-
cable to such rural health clinic for rural
health clinic services furnished in 2020, in-
creased by the percentage increase in the
MEI applicable to primary care services
furnished as of the first day of 2021; or
(bb) the limit described in paragraph
(2)(A); and
(II) with respect to a rural health clinic
that did not have a per visit payment
amount established for services furnished in
2020—
(aa) the per visit payment amount appli-
cable to such rural health clinic for rural
health clinic services furnished in 2021; or
(bb) the limit described in paragraph
(2)(A); and
(ii) in a subsequent year, at an amount equal
to the greater of—
(I) the amount established under subclause
(I) or (II) of clause (i), as applicable, or this
subclause for the previous year with respect
to such rural health clinic, increased by the
percentage increase in the MEI applicable to
primary care services furnished as of the
first day of such subsequent year; or
(II) the limit established under paragraph
(2) for such subsequent year.
(B) A rural health clinic described in this sub-
paragraph is a rural health clinic that—
(i) as of December 31, 2020, was in a hospital
with less than 50 beds and after such date such
hospital continues to have less than 50 beds
(not taking into account any increase in the
number of beds pursuant to a waiver under
subsection (b)(1)(A) of section 1320b–5 of this
title during the emergency period described in
subsection (g)(1)(B) of such section); and
(ii)(I) as of December 31, 2020, was enrolled
under section 1395cc(j) of this title (including
temporary enrollment during such emergency
period for such emergency period); or
(II) submitted an application for enrollment
under section 1395cc(j) of this title (or a re-
quest for such a temporary enrollment for
such emergency period) that was received not
later than December 31, 2020.
(g) Physical therapy services
(1)(A) Subject to paragraphs (4) and (5), in the
case of physical therapy services of the type de-
scribed in section 1395x(p) of this title and
speech-language pathology services of the type
described in such section through the applica-
tion of section 1395x(ll)(2) of this title, but (ex-
cept as provided in paragraph (6)) not described
in subsection (a)(8)(B), and physical therapy
services and speech-language pathology services
of such type which are furnished by a physician
or as incident to physicians’ services, with re-
spect to expenses incurred in any calendar year,
no more than the amount specified in paragraph
(2) for the year shall be considered as incurred
expenses for purposes of subsections (a) and (b).
The preceding sentence shall not apply to ex-
penses incurred with respect to services fur-
nished after December 31, 2017.
(B) With respect to services furnished during
2018 or a subsequent year, in the case of physical
therapy services of the type described in section
1395x(p) of this title, speech-language pathology
services of the type described in such section
through the application of section 1395x(ll)(2) of
this title, and physical therapy services and
speech-language pathology services of such type
which are furnished by a physician or as inci-
dent to physicians’ services, with respect to ex-
penses incurred in any calendar year, any
amount that is more than the amount specified
in paragraph (2) for the year shall not be consid-
ered as incurred expenses for purposes of sub-
sections (a) and (b) unless the applicable re-
quirements of paragraph (7) are met.
(2) The amount specified in this paragraph—
(A) for 1999, 2000, and 2001, is $1,500, and
(B) for a subsequent year is the amount spec-
ified in this paragraph for the preceding year
increased by the percentage increase in the
MEI (as defined in section 1395u(i)(3) of this
title) for such subsequent year;
except that if an increase under subparagraph
(B) for a year is not a multiple of $10, it shall be
rounded to the nearest multiple of $10.
(3)(A) Subject to paragraphs (4) and (5), in the
case of occupational therapy services (of the
Page 3030
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
6 So in original. There is no subpar. (D).
7 So in original. Probably should be preceded by ‘‘a’’.
type that are described in section 1395x(p) of this
title (but (except as provided in paragraph (6))
not described in subsection (a)(8)(B)) through
the operation of section 1395x(g) of this title and
of such type which are furnished by a physician
or as incident to physicians’ services), with re-
spect to expenses incurred in any calendar year,
no more than the amount specified in paragraph
(2) for the year shall be considered as incurred
expenses for purposes of subsections (a) and (b).
The preceding sentence shall not apply to ex-
penses incurred with respect to services fur-
nished after December 31, 2017.
(B) With respect to services furnished during
2018 or a subsequent year, in the case of occupa-
tional therapy services (of the type that are de-
scribed in section 1395x(p) of this title through
the operation of section 1395x(g) of this title and
of such type which are furnished by a physician
or as incident to physicians’ services), with re-
spect to expenses incurred in any calendar year,
any amount that is more than the amount speci-
fied in paragraph (2) for the year shall not be
considered as incurred expenses for purposes of
subsections (a) and (b) unless the applicable re-
quirements of paragraph (7) are met.
(4) This subsection shall not apply to expenses
incurred with respect to services furnished dur-
ing 2000, 2001, 2002, 2004, and 2005.
(5)(A) With respect to expenses incurred dur-
ing the period beginning on January 1, 2006, and
ending on December 31, 2017, for services, the
Secretary shall implement a process under
which an individual enrolled under this part
may, upon request of the individual or a person
on behalf of the individual, obtain an exception
from the uniform dollar limitation specified in
paragraph (2), for services described in para-
graphs (1) and (3) if the provision of such serv-
ices is determined to be medically necessary and
if the requirement of subparagraph (B) is met.
Under such process, if the Secretary does not
make a decision on such a request for an excep-
tion within 10 business days of the date of the
Secretary’s receipt of the request made in ac-
cordance with such requirement, the Secretary
shall be deemed to have found the services to be
medically necessary.
(B) In the case of outpatient therapy services
for which an exception is requested under the
first sentence of subparagraph (A), the claim for
such services shall contain an appropriate modi-
fier (such as the KX modifier used as of Feb-
ruary 22, 2012) indicating that such services are
medically necessary as justified by appropriate
documentation in the medical record involved.
(C)(i) In applying this paragraph with respect
to a request for an exception with respect to ex-
penses that would be incurred for outpatient
therapy services (including services described in
subsection (a)(8)(B)) that would exceed the
threshold described in clause (ii) for a year, the
request for such an exception, for services fur-
nished on or after October 1, 2012, shall be sub-
ject to a manual medical review process that,
subject to subparagraph (E), is similar to the
manual medical review process used for certain
exceptions under this paragraph in 2006.
(ii) The threshold under this clause for a year
is $3,700. Such threshold shall be applied sepa-
rately—
(I) for physical therapy services and speech-
language pathology services; and
(II) for occupational therapy services.
(E)(i) 6 In place of the manual medical review
process under subparagraph (C)(i), the Secretary
shall implement a process for medical review
under this subparagraph under which the Sec-
retary shall identify and conduct medical review
for services described in subparagraph (C)(i) fur-
nished by a provider of services or supplier (in
this subparagraph referred to as a ‘‘therapy pro-
vider’’) using such factors as the Secretary de-
termines to be appropriate.
(ii) Such factors may include the following:
(I) The therapy provider has had a high
claims denial percentage for therapy services
under this part or is less compliant with appli-
cable requirements under this subchapter.
(II) The therapy provider has a pattern of
billing for therapy services under this part
that is aberrant compared to peers or other-
wise has questionable billing practices for
such services, such as billing medically un-
likely units of services in a day.
(III) The therapy provider is newly enrolled
under this subchapter or has not previously
furnished therapy services under this part.
(IV) The services are furnished to treat a
type of medical condition.
(V) The therapy provider is part of group 7
that includes another therapy provider identi-
fied using the factors determined under this
subparagraph.
(iii) For purposes of carrying out this subpara-
graph, the Secretary shall provide for the trans-
fer, from the Federal Supplementary Medical In-
surance Trust Fund under section 1395t of this
title, of $5,000,000 to the Centers for Medicare &
Medicaid Services Program Management Ac-
count for fiscal years 2015 and 2016, to remain
available until expended. Such funds may not be
used by a contractor under section 1395ddd(h) of
this title for medical reviews under this sub-
paragraph.
(iv) The targeted review process under this
subparagraph shall not apply to services for
which expenses are incurred beyond the period
for which the exceptions process under subpara-
graph (A) is implemented, except as such process
is applied under paragraph (7)(B).
(6)(A) In applying paragraphs (1) and (3) to
services furnished during the period beginning
not later than October 1, 2012, and ending on De-
cember 31, 2017, the exclusion of services de-
scribed in subsection (a)(8)(B) from the uniform
dollar limitation specified in paragraph (2) shall
not apply to such services furnished during 2012
through 2017.
(B)(i) With respect to outpatient therapy serv-
ices furnished beginning on or after January 1,
2013, and before January 1, 2014, for which pay-
ment is made under section 1395m(g) of this
title, the Secretary shall count toward the uni-
form dollar limitations described in paragraphs
(1) and (3) and the threshold described in para-
graph (5)(C) the amount that would be payable
under this part if such services were paid under
Page 3031
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
section 1395m(k)(1)(B) of this title instead of
being paid under section 1395m(g) of this title.
(ii) Nothing in clause (i) shall be construed as
changing the method of payment for outpatient
therapy services under section 1395m(g) of this
title.
(7) For purposes of paragraphs (1)(B) and
(3)(B), with respect to services described in such
paragraphs, the requirements described in this
paragraph are as follows:
(A) Inclusion of appropriate modifier
The claim for such services contains an ap-
propriate modifier (such as the KX modifier
described in paragraph (5)(B)) indicating that
such services are medically necessary as justi-
fied by appropriate documentation in the med-
ical record involved.
(B) Targeted medical review for certain serv-
ices above threshold
(i) In general
In the case where expenses that would be
incurred for such services would exceed the
threshold described in clause (ii) for the
year, such services shall be subject to the
process for medical review implemented
under paragraph (5)(E).
(ii) Threshold
The threshold under this clause for—
(I) a year before 2028, is $3,000;
(II) 2028, is the amount specified in sub-
clause (I) increased by the percentage in-
crease in the MEI (as defined in section
1395u(i)(3) of this title) for 2028; and
(III) a subsequent year, is the amount
specified in this clause for the preceding
year increased by the percentage increase
in the MEI (as defined in section 1395u(i)(3)
of this title) for such subsequent year;
except that if an increase under subclause
(II) or (III) for a year is not a multiple of $10,
it shall be rounded to the nearest multiple of
$10.
(iii) Application
The threshold under clause (ii) shall be ap-
plied separately—
(I) for physical therapy services and
speech-language pathology services; and
(II) for occupational therapy services.
(iv) Funding
For purposes of carrying out this subpara-
graph, the Secretary shall provide for the
transfer, from the Federal Supplementary
Medical Insurance Trust Fund under section
1395t of this title to the Centers for Medicare
& Medicaid Services Program Management
Account, of $5,000,000 for each fiscal year be-
ginning with fiscal year 2018, to remain
available until expended. Such funds may
not be used by a contractor under section
1395ddd(h) of this title for medical reviews
under this subparagraph.
(8) With respect to services furnished on or
after January 1, 2013, where payment may not be
made as a result of application of paragraphs (1)
and (3), section 1395pp of this title shall apply in
the same manner as such section applies to a de-
nial that is made by reason of section 1395y(a)(1)
of this title.
(h) Fee schedules for clinical diagnostic labora-
tory tests; percentage of prevailing charge
level; nominal fee for samples; adjustments;
recipients of payments; negotiated payment
rate
(1)(A) Subject to section 1395m(d)(1) of this
title, the Secretary shall establish fee schedules
for clinical diagnostic laboratory tests (includ-
ing prostate cancer screening tests under sec-
tion 1395x(oo) of this title consisting of prostate-
specific antigen blood tests) for which payment
is made under this part, other than such tests
performed by a provider of services for an inpa-
tient of such provider.
(B) In the case of clinical diagnostic labora-
tory tests performed by a physician or by a lab-
oratory (other than tests performed by a quali-
fied hospital laboratory (as defined in subpara-
graph (D)) for outpatients of such hospital), the
fee schedules established under subparagraph
(A) shall be established on a regional, statewide,
or carrier service area basis (as the Secretary
may determine to be appropriate) for tests fur-
nished on or after July 1, 1984.
(C) In the case of clinical diagnostic labora-
tory tests performed by a qualified hospital lab-
oratory (as defined in subparagraph (D)) for out-
patients of such hospital, the fee schedules es-
tablished under subparagraph (A) shall be estab-
lished on a regional, statewide, or carrier serv-
ice area basis (as the Secretary may determine
to be appropriate) for tests furnished on or after
July 1, 1984.
(D) In this subsection, the term ‘‘qualified hos-
pital laboratory’’ means a hospital laboratory,
in a sole community hospital (as defined in sec-
tion 1395ww(d)(5)(D)(iii) of this title), which pro-
vides some clinical diagnostic laboratory tests
24 hours a day in order to serve a hospital emer-
gency room which is available to provide serv-
ices 24 hours a day and 7 days a week.
(2)(A)(i) Except as provided in clause (v), sub-
paragraph (B), and paragraph (4), the Secretary
shall set the fee schedules at 60 percent (or, in
the case of a test performed by a qualified hos-
pital laboratory (as defined in paragraph (1)(D))
for outpatients of such hospital, 62 percent) of
the prevailing charge level determined pursuant
to the third and fourth sentences of section
1395u(b)(3) of this title for similar clinical diag-
nostic laboratory tests for the applicable region,
State, or area for the 12-month period beginning
July 1, 1984, adjusted annually (to become effec-
tive on January 1 of each year) by, subject to
clause (iv), a percentage increase or decrease
equal to the percentage increase or decrease in
the Consumer Price Index for All Urban Con-
sumers (United States city average) minus, for
each of the years 2009 and 2010, 0.5 percentage
points, and, for tests furnished before April 1,
2014, subject to such other adjustments as the
Secretary determines are justified by techno-
logical changes.
(ii) Notwithstanding clause (i)—
(I) any change in the fee schedules which
would have become effective under this sub-
section for tests furnished on or after January
1, 1988, shall not be effective for tests fur-
Page 3032
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
nished during the 3-month period beginning on
January 1, 1988,
(II) the Secretary shall not adjust the fee
schedules under clause (i) to take into account
any increase in the consumer price index for
1988,
(III) the annual adjustment in the fee sched-
ules determined under clause (i) for each of
the years 1991, 1992, and 1993 shall be 2 percent,
and
(IV) the annual adjustment in the fee sched-
ules determined under clause (i) for each of
the years 1994 and 1995, 1998 through 2002, and
2004 through 2008 shall be 0 percent.
(iii) In establishing fee schedules under clause
(i) with respect to automated tests and tests
(other than cytopathology tests) which before
July 1, 1984, the Secretary made subject to a
limit based on lowest charge levels under the
sixth sentence of section 1395u(b)(3) of this title
performed after March 31, 1988, the Secretary
shall reduce by 8.3 percent the fee schedules oth-
erwise established for 1988, and such reduced fee
schedules shall serve as the base for 1989 and
subsequent years.
(iv) After determining the adjustment to the
fee schedules under clause (i), the Secretary
shall reduce such adjustment—
(I) for 2011 and each subsequent year, by the
productivity adjustment described in section
1395ww(b)(3)(B)(xi)(II) of this title; and
(II) for each of 2011 through 2015, by 1.75 per-
centage points.
Subclause (I) shall not apply in a year where the
adjustment to the fee schedules determined
under clause (i) is 0.0 or a percentage decrease
for a year. The application of the productivity
adjustment under subclause (I) shall not result
in an adjustment to the fee schedules under
clause (i) being less than 0.0 for a year. The ap-
plication of subclause (II) may result in an ad-
justment to the fee schedules under clause (i)
being less than 0.0 for a year, and may result in
payment rates for a year being less than such
payment rates for the preceding year.
(v) The Secretary shall reduce by 2 percent the
fee schedules otherwise determined under clause
(i) for 2013, and such reduced fee schedules shall
serve as the base for 2014 and subsequent years.
(B) The Secretary may make further adjust-
ments or exceptions to the fee schedules to as-
sure adequate reimbursement of (i) emergency
laboratory tests needed for the provision of bona
fide emergency services, and (ii) certain low vol-
ume high-cost tests where highly sophisticated
equipment or extremely skilled personnel are
necessary to assure quality.
(3) In addition to the amounts provided under
the fee schedules (for tests furnished before Jan-
uary 1, 2017) or under section 1395m–1 of this
title (for tests furnished on or after January 1,
2017), subject to subsection (b)(5) of such section,
the Secretary shall provide for and establish (A)
a nominal fee to cover the appropriate costs in
collecting the sample on which a clinical diag-
nostic laboratory test was performed and for
which payment is made under this part, except
that not more than one such fee may be pro-
vided under this paragraph with respect to sam-
ples collected in the same encounter, and (B) a
fee to cover the transportation and personnel
expenses for trained personnel to travel to the
location of an individual to collect the sample,
except that such a fee may be provided only
with respect to an individual who is homebound
or an inpatient in an inpatient facility (other
than a hospital). In establishing a fee to cover
the transportation and personnel expenses for
trained personnel to travel to the location of an
individual to collect a sample, the Secretary
shall provide a method for computing the fee
based on the number of miles traveled and the
personnel costs associated with the collection of
each individual sample, but the Secretary shall
only be required to apply such method in the
case of tests furnished during the period begin-
ning on April 1, 1989, and ending on December 31,
1990, by a laboratory that establishes to the sat-
isfaction of the Secretary (based on data for the
12-month period ending June 30, 1988) that (i) the
laboratory is dependent upon payments under
this subchapter for at least 80 percent of its col-
lected revenues for clinical diagnostic labora-
tory tests, (ii) at least 85 percent of its gross
revenues for such tests are attributable to tests
performed with respect to individuals who are
homebound or who are residents in a nursing fa-
cility, and (iii) the laboratory provided such
tests for residents in nursing facilities rep-
resenting at least 20 percent of the number of
such facilities in the State in which the labora-
tory is located.
(4)(A) In establishing any fee schedule under
this subsection, the Secretary may provide for
an adjustment to take into account, with re-
spect to the portion of the expenses of clinical
diagnostic
laboratory
tests
attributable
to
wages, the relative difference between a region’s
or local area’s wage rates and the wage rate pre-
sumed in the data on which the schedule is
based.
(B) For purposes of subsections (a)(1)(D)(i) and
(a)(2)(D)(i), the limitation amount for a clinical
diagnostic laboratory test performed—
(i) on or after July 1, 1986, and before April
1, 1988, is equal to 115 percent of the median of
all the fee schedules established for that test
for that laboratory setting under paragraph
(1),
(ii) after March 31, 1988, and before January
1, 1990, is equal to the median of all the fee
schedules established for that test for that
laboratory setting under paragraph (1),
(iii) after December 31, 1989, and before Jan-
uary 1, 1991, is equal to 93 percent of the me-
dian of all the fee schedules established for
that test for that laboratory setting under
paragraph (1),
(iv) after December 31, 1990, and before Janu-
ary 1, 1994, is equal to 88 percent of such me-
dian,
(v) after December 31, 1993, and before Janu-
ary 1, 1995, is equal to 84 percent of such me-
dian,
(vi) after December 31, 1994, and before Janu-
ary 1, 1996, is equal to 80 percent of such me-
dian,
(vii) after December 31, 1995, and before Jan-
uary 1, 1998, is equal to 76 percent of such me-
dian, and
(viii) after December 31, 1997, is equal to 74
percent of such median (or 100 percent of such
Page 3033
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
8 So in original. The comma after ‘‘subclause (II))’’ probably
should follow ‘‘is performed’’.
9 So in original. Probably should be ‘‘such paragraph applies’’.
median in the case of a clinical diagnostic lab-
oratory test performed on or after January 1,
2001, that the Secretary determines is a new
test for which no limitation amount has pre-
viously been established under this subpara-
graph).
(5)(A) In the case of a bill or request for pay-
ment for a clinical diagnostic laboratory test for
which payment may otherwise be made under
this part on an assignment-related basis or
under a provider agreement under section 1395cc
of this title, payment may be made only to the
person or entity which performed or supervised
the performance of such test; except that—
(i) if a physician performed or supervised the
performance of such test, payment may be
made to another physician with whom he
shares his practice,
(ii) in the case of a test performed at the re-
quest of a laboratory by another laboratory,
payment may be made to the referring labora-
tory but only if—
(I) the referring laboratory is located in,
or is part of, a rural hospital,
(II) the referring laboratory is wholly
owned by the entity performing such test,
the referring laboratory wholly owns the en-
tity performing such test, or both the refer-
ring laboratory and the entity performing
such test are wholly-owned by a third enti-
ty, or
(III) not more than 30 percent of the clin-
ical diagnostic laboratory tests for which
such referring laboratory (but not including
a laboratory described in subclause (II)),8 re-
ceives requests for testing during the year in
which the test is performed 8 are performed
by another laboratory, and
(iii) in the case of a clinical diagnostic lab-
oratory test provided under an arrangement
(as defined in section 1395x(w)(1) of this title)
made by a hospital, critical access hospital, or
skilled nursing facility, payment shall be
made to the hospital or skilled nursing facil-
ity.
(B) In the case of such a bill or request for
payment for a clinical diagnostic laboratory
test for which payment may otherwise be made
under this part, and which is not described in
subparagraph (A), payment may be made to the
beneficiary only on the basis of the itemized bill
of the person or entity which performed or su-
pervised the performance of the test.
(C) Payment for a clinical diagnostic labora-
tory test, including a test performed in a physi-
cian’s office but excluding a test performed by a
rural health clinic may only be made on an as-
signment-related basis or to a provider of serv-
ices with an agreement in effect under section
1395cc of this title.
(D) A person may not bill for a clinical diag-
nostic laboratory test, including a test per-
formed in a physician’s office but excluding a
test performed by a rural health clinic, other
than on an assignment-related basis. If a person
knowingly and willfully and on a repeated basis
bills for a clinical diagnostic laboratory test in
violation of the previous sentence, the Secretary
may apply sanctions against the person in the
same manner as the Secretary may apply sanc-
tions against a physician in accordance with
paragraph (2) of section 1395u(j) of this title in
the same manner such paragraphs apply 9 with
respect to a physician. Paragraph (4) of such sec-
tion shall apply in this subparagraph in the
same manner as such paragraph applies to such
section.
(6) For tests furnished before January 1, 2017,
in the case of any diagnostic laboratory test
payment for which is not made on the basis of a
fee schedule under paragraph (1), the Secretary
may establish a payment rate which is accept-
able to the person or entity performing the test
and which would be considered the full charge
for such tests. Such negotiated rate shall be lim-
ited to an amount not in excess of the total pay-
ment that would have been made for the serv-
ices in the absence of such rate.
(7) Notwithstanding paragraphs (1) and (4) and
section 1395m–1 of this title, the Secretary shall
establish a national minimum payment amount
under this part for a diagnostic or screening pap
smear laboratory test (including all cervical
cancer screening technologies that have been
approved by the Food and Drug Administration
as a primary screening method for detection of
cervical cancer) equal to $14.60 for tests fur-
nished in 2000. For such tests furnished in subse-
quent years, such national minimum payment
amount shall be adjusted annually as provided
in paragraph (2).
(8)(A) The Secretary shall establish by regula-
tion procedures for determining the basis for,
and amount of, payment under this subsection
for any clinical diagnostic laboratory test with
respect to which a new or substantially revised
HCPCS code is assigned on or after January 1,
2005 (in this paragraph referred to as ‘‘new
tests’’).
(B) Determinations under subparagraph (A)
shall be made only after the Secretary—
(i) makes available to the public (through an
Internet website and other appropriate mecha-
nisms) a list that includes any such test for
which establishment of a payment amount
under this subsection is being considered for a
year;
(ii) on the same day such list is made avail-
able, causes to have published in the Federal
Register notice of a meeting to receive com-
ments and recommendations (and data on
which recommendations are based) from the
public on the appropriate basis under this sub-
section for establishing payment amounts for
the tests on such list;
(iii) not less than 30 days after publication of
such notice convenes a meeting, that includes
representatives of officials of the Centers for
Medicare & Medicaid Services involved in de-
termining payment amounts, to receive such
comments and recommendations (and data on
which the recommendations are based);
(iv) taking into account the comments and
recommendations (and accompanying data) re-
ceived at such meeting, develops and makes
available to the public (through an Internet
Page 3034
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
website and other appropriate mechanisms) a
list of proposed determinations with respect to
the appropriate basis for establishing a pay-
ment amount under this subsection for each
such code, together with an explanation of the
reasons for each such determination, the data
on which the determinations are based, and a
request for public written comments on the
proposed determination; and
(v) taking into account the comments re-
ceived during the public comment period, de-
velops and makes available to the public
(through an Internet website and other appro-
priate mechanisms) a list of final determina-
tions of the payment amounts for such tests
under this subsection, together with the ra-
tionale for each such determination, the data
on which the determinations are based, and re-
sponses to comments and suggestions received
from the public.
(C) Under the procedures established pursuant
to subparagraph (A), the Secretary shall—
(i) set forth the criteria for making deter-
minations under subparagraph (A); and
(ii) make available to the public the data
(other than proprietary data) considered in
making such determinations.
(D) The Secretary may convene such further
public meetings to receive public comments on
payment amounts for new tests under this sub-
section as the Secretary deems appropriate.
(E) For purposes of this paragraph:
(i) The term ‘‘HCPCS’’ refers to the Health
Care Procedure Coding System.
(ii) A code shall be considered to be ‘‘sub-
stantially revised’’ if there is a substantive
change to the definition of the test or proce-
dure to which the code applies (such as a new
analyte or a new methodology for measuring
an existing analyte-specific test).
(9) Notwithstanding any other provision in
this part, in the case of any diagnostic labora-
tory test for HbA1c that is labeled by the Food
and Drug Administration for home use and is
furnished on or after April 1, 2008, the payment
rate for such test shall be the payment rate es-
tablished under this part for a glycated hemo-
globin test (identified as of October 1, 2007, by
HCPCS code 83036 (and any succeeding codes)).
(i) Outpatient surgery
(1) The Secretary shall, in consultation with
appropriate medical organizations—
(A) specify those surgical procedures which
are appropriately (when considered in terms of
the proper utilization of hospital inpatient fa-
cilities) performed on an inpatient basis in a
hospital but which also can be performed safe-
ly on an ambulatory basis in an ambulatory
surgical center (meeting the standards speci-
fied under section 1395k(a)(2)(F)(i) of this
title), critical access hospital, or hospital out-
patient department, and
(B) specify those surgical procedures which
are appropriately (when considered in terms of
the proper utilization of hospital inpatient fa-
cilities) performed on an inpatient basis in a
hospital but which also can be performed safe-
ly on an ambulatory basis in a physician’s of-
fice.
The lists of procedures established under sub-
paragraphs (A) and (B) shall be reviewed and up-
dated not less often than every 2 years, in con-
sultation with appropriate trade and profes-
sional organizations.
(2)(A) For services furnished prior to the im-
plementation of the system described in sub-
paragraph (D), subject to subparagraph (E), the
amount of payment to be made for facility serv-
ices furnished in connection with a surgical pro-
cedure specified pursuant to paragraph (1)(A)
and furnished to an individual in an ambulatory
surgical center described in such paragraph
shall be equal to 80 percent of a standard over-
head amount established by the Secretary (with
respect to each such procedure) on the basis of
the Secretary’s estimate of a fair fee which—
(i) takes into account the costs incurred by
such centers, or classes of centers, generally
in providing services furnished in connection
with the performance of such procedure, as de-
termined in accordance with a survey (based
upon a representative sample of procedures
and facilities) of the actual audited costs in-
curred by such centers in providing such serv-
ices,
(ii) takes such costs into account in such a
manner as will assure that the performance of
the procedure in such a center will result in
substantially less amounts paid under this
subchapter than would have been paid if the
procedure had been performed on an inpatient
basis in a hospital, and
(iii) in the case of insertion of an intraocular
lens during or subsequent to cataract surgery
includes payment which is reasonable and re-
lated to the cost of acquiring the class of lens
involved.
Each amount so established shall be reviewed
and updated not later than July 1, 1987, and an-
nually thereafter to take account of varying
conditions in different areas.
(B) The amount of payment to be made under
this part for facility services furnished, in con-
nection with a surgical procedure specified pur-
suant to paragraph (1)(B), in a physician’s office
shall be equal to 80 percent of a standard over-
head amount established by the Secretary (with
respect to each such procedure) on the basis of
the Secretary’s estimate of a fair fee which—
(i) takes into account additional costs, not
usually included in the professional fee, in-
curred by physicians in securing, maintaining,
and staffing the facilities and ancillary serv-
ices appropriate for the performance of such
procedure in the physician’s office, and
(ii) takes such items into account in such a
manner which will assure that the perform-
ance of such procedure in the physician’s of-
fice will result in substantially less amounts
paid under this subchapter than would have
been paid if the services had been furnished on
an inpatient basis in a hospital.
Each amount so established shall be reviewed
and updated not later than July 1, 1987, and an-
nually thereafter to take account of varying
conditions in different areas.
(C)(i) Notwithstanding the second sentence of
each of subparagraphs (A) and (B), except as oth-
erwise specified in clauses (ii), (iii), and (iv), if
Page 3035
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
the Secretary has not updated amounts estab-
lished under such subparagraphs or under sub-
paragraph (D), with respect to facility services
furnished during a fiscal year (beginning with
fiscal year 1986 or a calendar year (beginning
with 2006)), such amounts shall be increased by
the percentage increase in the Consumer Price
Index for all urban consumers (U.S. city aver-
age) as estimated by the Secretary for the 12-
month period ending with the midpoint of the
year involved.
(ii) In each of the fiscal years 1998 through
2002, the increase under this subparagraph shall
be reduced (but not below zero) by 2.0 percentage
points.
(iii) In fiscal year 2004, beginning with April 1,
2004, the increase under this subparagraph shall
be the Consumer Price Index for all urban con-
sumers (U.S. city average) as estimated by the
Secretary for the 12-month period ending with
March 31, 2003, minus 3.0 percentage points.
(iv) In fiscal year 2005, the last quarter of cal-
endar year 2005, and each of calendar years 2006
through 2009, the increase under this subpara-
graph shall be 0 percent.
(D)(i) Taking into account the recommenda-
tions in the report under section 626(d) of Medi-
care Prescription Drug, Improvement, and Mod-
ernization Act of 2003, the Secretary shall imple-
ment a revised payment system for payment of
surgical services furnished in ambulatory sur-
gical centers.
(ii) In the year the system described in clause
(i) is implemented, such system shall be de-
signed to result in the same aggregate amount
of expenditures for such services as would be
made if this subparagraph did not apply, as esti-
mated by the Secretary and taking into account
reduced expenditures that would apply if sub-
paragraph (E) were to continue to apply, as esti-
mated by the Secretary.
(iii) The Secretary shall implement the sys-
tem described in clause (i) for periods in a man-
ner so that it is first effective beginning on or
after January 1, 2006, and not later than January
1, 2008.
(iv) The Secretary may implement such sys-
tem in a manner so as to provide for a reduction
in any annual update for failure to report on
quality measures in accordance with paragraph
(7).
(v) In implementing the system described in
clause (i) for 2011 and each subsequent year, any
annual update under such system for the year,
after application of clause (iv), shall be reduced
by the productivity adjustment described in sec-
tion 1395ww(b)(3)(B)(xi)(II) of this title. The ap-
plication of the preceding sentence may result
in such update being less than 0.0 for a year, and
may result in payment rates under the system
described in clause (i) for a year being less than
such payment rates for the preceding year.
(vi) There shall be no administrative or judi-
cial review under section 1395ff, 1395oo of this
title, or otherwise, of the classification system,
the relative weights, payment amounts, and the
geographic adjustment factor, if any, under this
subparagraph.
(E) With respect to surgical procedures fur-
nished on or after January 1, 2007, and before the
effective date of the implementation of a revised
payment system under subparagraph (D), if—
(i) the standard overhead amount under sub-
paragraph (A) for a facility service for such
procedure, without the application of any geo-
graphic adjustment, exceeds
(ii) the Medicare OPD fee schedule amount
established under the prospective payment
system for hospital outpatient department
services under paragraph (3)(D) of subsection
(t) for such service for such year, determined
without regard to geographic adjustment
under paragraph (2)(D) of such subsection,
the Secretary shall substitute under subpara-
graph (A) the amount described in clause (ii) for
the standard overhead amount for such service
referred to in clause (i).
(3)(A) The aggregate amount of the payments
to be made under this part for outpatient hos-
pital facility services or critical access hospital
services furnished before January 1, 1999, in con-
nection with surgical procedures specified under
paragraph (1)(A) shall be equal to the lesser of—
(i) the amount determined with respect to
such services under subsection (a)(2)(B); or
(ii) the blend amount (described in subpara-
graph (B)).
(B)(i) The blend amount for a cost reporting
period is the sum of—
(I) the cost proportion (as defined in clause
(ii)(I)) of the amount described in subpara-
graph (A)(i), and
(II) the ASC proportion (as defined in clause
(ii)(II)) of the standard overhead amount pay-
able with respect to the same surgical proce-
dure as if it were provided in an ambulatory
surgical center in the same area, as deter-
mined under paragraph (2)(A), less the amount
a provider may charge as described in clause
(ii) of section 1395cc(a)(2)(A) of this title.
(ii) Subject to paragraph (4), in this paragraph:
(I) The term ‘‘cost proportion’’ means 75 per-
cent for cost reporting periods beginning in
fiscal year 1988, 50 percent for portions of cost
reporting periods beginning on or after Octo-
ber 1, 1988, and ending on or before December
31, 1990, and 42 percent for portions of cost re-
porting periods beginning on or after January
1, 1991.
(II) The term ‘‘ASC proportion’’ means 25
percent for cost reporting periods beginning in
fiscal year 1988, 50 percent for portions of cost
reporting periods beginning on or after Octo-
ber 1, 1988, and ending on or before December
31, 1990, and 58 percent for portions of cost re-
porting periods beginning on or after January
1, 1991.
(4)(A) In the case of a hospital that—
(i) makes application to the Secretary and
demonstrates that it specializes in eye serv-
ices or eye and ear services (as determined by
the Secretary),
(ii) receives more than 30 percent of its total
revenues from outpatient services, and
(iii) on October 1, 1987—
(I) was an eye specialty hospital or an eye
and ear specialty hospital, or
(II) was operated as an eye or eye and ear
unit (as defined in subparagraph (B)) of a
general acute care hospital which, on the
date of the application described in clause
Page 3036
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
10 So in original. The word ‘‘this’’ probably should not appear.
11 So in original. The closing parenthesis preceding the comma
probably should not appear.
(i), operates less than 20 percent of the beds
that the hospital operated on October 1, 1987,
and has sold or otherwise disposed of a sub-
stantial portion of the hospital’s other acute
care operations,
the cost proportion and ASC proportion in effect
under subclauses (I) and (II) of paragraph
(3)(B)(ii) for cost reporting periods beginning in
fiscal year 1988 shall remain in effect for cost re-
porting periods beginning on or after October 1,
1988, and before January 1, 1995.
(B)
For
purposes
of
this 10
subparagraph
(A)(iii)(II), the term ‘‘eye or eye and ear unit’’
means a physically separate or distinct unit
containing separate surgical suites devoted sole-
ly to eye or eye and ear services.
(5)(A) The Secretary is authorized to provide
by regulations that in the case of a surgical pro-
cedure, specified by the Secretary pursuant to
paragraph (1)(A), performed in an ambulatory
surgical center described in such paragraph,
there shall be paid (in lieu of any amounts oth-
erwise payable under this part) with respect to
the facility services furnished by such center
and with respect to all related services (includ-
ing physicians’ services, laboratory, X-ray, and
diagnostic services) a single all-inclusive fee es-
tablished pursuant to subparagraph (B), if all
parties furnishing all such services agree to ac-
cept such fee (to be divided among the parties
involved in such manner as they shall have pre-
viously agreed upon) as full payment for the
services furnished.
(B) In implementing this paragraph, the Sec-
retary shall establish with respect to each sur-
gical procedure specified pursuant to paragraph
(1)(A) the amount of the all-inclusive fee for
such procedure, taking into account such fac-
tors as may be appropriate. The amount so es-
tablished with respect to any surgical procedure
shall be reviewed periodically and may be ad-
justed by the Secretary, when appropriate, to
take account of varying conditions in different
areas.
(6) Any person, including a facility having an
agreement under section 1395k(a)(2)(F)(i) of this
title, who knowingly and willfully presents, or
causes to be presented, a bill or request for pay-
ment, for an intraocular lens inserted during or
subsequent to cataract surgery for which pay-
ment may be made under paragraph (2)(A)(iii), is
subject to a civil money penalty of not to exceed
$2,000. The provisions of section 1320a–7a of this
title (other than subsections (a) and (b)) shall
apply to a civil money penalty under the pre-
vious sentence in the same manner as such pro-
visions apply to a penalty or proceeding under
section 1320a–7a(a) of this title.
(7)(A) For purposes of paragraph (2)(D)(iv), the
Secretary may provide, in the case of an ambu-
latory surgical center that does not submit, to
the Secretary in accordance with this para-
graph, data required to be submitted on meas-
ures selected under this paragraph with respect
to a year, any annual increase provided under
the system established under paragraph (2)(D)
for such year shall be reduced by 2.0 percentage
points. A reduction under this subparagraph
shall apply only with respect to the year in-
volved and the Secretary shall not take into ac-
count such reduction in computing any annual
increase factor for a subsequent year.
(B) Except as the Secretary may otherwise
provide, the provisions of subparagraphs (B), (C),
(D), and (E) of paragraph (17) of subsection (t)
shall apply with respect to services of ambula-
tory surgical centers under this paragraph in a
similar manner to the manner in which they
apply under such paragraph and, for purposes of
this subparagraph, any reference to a hospital,
outpatient setting, or outpatient hospital serv-
ices is deemed a reference to an ambulatory sur-
gical center, the setting of such a center, or
services of such a center, respectively.
(8) The Secretary shall conduct a similar type
of review as required under paragraph (22) of sec-
tion 1395l(t) of this title),11 including the second
sentence of subparagraph (C) of such paragraph,
to payment for services under this subsection,
and make such revisions under this paragraph,
in an appropriate manner (as determined by the
Secretary).
(9) In the case of a part B rebatable drug (as
defined in paragraph (2) of section 1395w–3a(i) of
this title) for which payment under this sub-
section is not packaged into a payment for a
service furnished on or after April 1, 2023, under
the revised payment system under this sub-
section, in lieu of calculation of coinsurance and
the amount of payment otherwise applicable
under this subsection, the provisions of section
1395w–3a(i)(5) of this title and paragraph (1)(EE)
of subsection (a), shall, as determined appro-
priate by the Secretary, apply under this sub-
section in the same manner as such provisions
of section 1395w–3a(i)(5) of this title and sub-
section (a) apply under such section and sub-
section.
(10) TEMPORARY
ADDITIONAL
PAYMENTS
FOR
NON-OPIOID TREATMENTS FOR PAIN RELIEF.—
(A) IN GENERAL.—In the case of surgical serv-
ices furnished on or after January 1, 2025, and
before January 1, 2028, the payment system de-
scribed in paragraph (2)(D)(i) shall provide, in
a budget-neutral manner, for an additional
payment for a non-opioid treatment for pain
relief (as defined in clause (iv) of subsection
(t)(16)(G)) furnished as part of such services in
the amount specified in clause (ii) of such sub-
section, subject to the limitation under clause
(iii) of such subsection.
(B) TRANSITION.—A drug or biological that
meets the requirements of section 416.174 of
title 42, Code of Federal Regulations (or any
successor regulation) and is a non-opioid
treatment for pain relief (as defined in clause
(iv) of subsection (t)(16)(G)) shall receive addi-
tional payment in the amount specified in
clause (ii) of such subsection, subject to the
limitation under clause (iii) of such sub-
section.
(j) Accrual of interest on balance of excess or
deficit not paid
Whenever a final determination is made that
the amount of payment made under this part ei-
Page 3037
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
12 So in original. Probably should be ‘‘are—’’.
ther to a provider of services or to another per-
son pursuant to an assignment under section
1395u(b)(3)(B)(ii) of this title was in excess of or
less than the amount of payment that is due,
and payment of such excess or deficit is not
made (or effected by offset) within 30 days of the
date of the determination, interest shall accrue
on the balance of such excess or deficit not paid
or offset (to the extent that the balance is owed
by or owing to the provider) at a rate deter-
mined in accordance with the regulations of the
Secretary of the Treasury applicable to charges
for late payments (or, in the case of such a de-
termination made with respect to a payment
made on or after March 27, 2020, and during the
emergency
period
described
in
section
1320b–5(g)(1)(B) of this title under the program
described in section 421.214 of title 42, Code of
Federal Regulations (or any successor regula-
tion), at a rate of 4 percent).
(k) Hepatitis B vaccine
With respect to services described in section
1395x(s)(10)(B) of this title, the Secretary may
provide, instead of the amount of payment oth-
erwise provided under this part, for payment of
such an amount or amounts as reasonably re-
flects the general cost of efficiently providing
such services.
(l) Fee schedule for services of certified reg-
istered nurse anesthetists
(1)(A) The Secretary shall establish a fee
schedule for services of certified registered
nurse anesthetists under section 1395x(s)(11) of
this title.
(B) In establishing the fee schedule under this
paragraph the Secretary may utilize a system of
time units, a system of base and time units, or
any appropriate methodology.
(C) The provisions of this subsection shall not
apply to certain services furnished in certain
hospitals in rural areas under the provisions of
section 9320(k) of the Omnibus Budget Reconcili-
ation Act of 1986, as amended by section 6132 of
the Omnibus Budget Reconciliation Act of 1989.
(2) Except as provided in paragraph (3), the fee
schedule established under paragraph (1) shall be
initially based on audited data from cost report-
ing periods ending in fiscal year 1985 and such
other data as the Secretary determines nec-
essary.
(3)(A) In establishing the initial fee schedule
for those services, the Secretary shall adjust the
fee schedule to the extent necessary to ensure
that the estimated total amount which will be
paid under this subchapter for those services
plus applicable coinsurance in 1989 will equal the
estimated total amount which would be paid
under this subchapter for those services in 1989
if the services were included as inpatient hos-
pital services and payment for such services was
made under part A in the same manner as pay-
ment was made in fiscal year 1987, adjusted to
take into account changes in prices and tech-
nology relating to the administration of anes-
thesia.
(B) The Secretary shall also reduce the pre-
vailing charge of physicians for medical direc-
tion of a certified registered nurse anesthetist,
or the fee schedule for services of certified reg-
istered nurse anesthetists, or both, to the extent
necessary to ensure that the estimated total
amount which will be paid under this subchapter
plus applicable coinsurance for such medical di-
rection and such services in 1989 and 1990 will
not exceed the estimated total amount which
would have been paid plus applicable coinsur-
ance but for the enactment of the amendments
made by section 9320 of the Omnibus Budget
Reconciliation Act of 1986. A reduced prevailing
charge under this subparagraph shall become
the prevailing charge but for subsequent years
for purposes of applying the economic index
under the fourth sentence of section 1395u(b)(3)
of this title.
(4)(A) Except as provided in subparagraphs (C)
and (D), in determining the amount paid under
the fee schedule under this subsection for serv-
ices furnished on or after January 1, 1991, by a
certified registered nurse anesthetist who is not
medically directed—
(i) the conversion factor shall be—
(I) for services furnished in 1991, $15.50,
(II) for services furnished in 1992, $15.75,
(III) for services furnished in 1993, $16.00,
(IV) for services furnished in 1994, $16.25,
(V) for services furnished in 1995, $16.50,
(VI) for services furnished in 1996, $16.75,
and
(VII) for services furnished in calendar
years after 1996, the previous year’s conver-
sion factor increased by the update deter-
mined under section 1395w–4(d) of this title
for physician anesthesia services for that
year;
(ii) the payment areas to be used shall be the
fee schedule areas used under section 1395w–4
of this title (or, in the case of services fur-
nished during 1991, the localities used under
section 1395u(b) of this title) for purposes of
computing payments for physicians’ services
that are anesthesia services;
(iii) the geographic adjustment factors to be
applied to the conversion factor under clause
(i) for services in a fee schedule area or local-
ity is— 12
(I) in the case of services furnished in 1991,
the geographic work index value and the ge-
ographic practice cost index value specified
in section 1395u(q)(1)(B) of this title for phy-
sicians’ services that are anesthesia services
furnished in the area or locality, and
(II) in the case of services furnished after
1991, the geographic work index value, the
geographic practice cost index value, and
the geographic malpractice index value used
for determining payments for physicians’
services that are anesthesia services under
section 1395w–4 of this title,
with 70 percent of the conversion factor treat-
ed as attributable to work and 30 percent as
attributable to overhead for services furnished
in 1991 (and the portions attributable to work,
practice expenses, and malpractice expenses in
1992 and thereafter being the same as is ap-
plied under section 1395w–4 of this title).
(B)(i) Except as provided in clause (ii) and sub-
paragraph (D), in determining the amount paid
under the fee schedule under this subsection for
Page 3038
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
13 So in original. Probably should be ‘‘subparagraph’’.
14 So in original. No par. (2) has been enacted.
services furnished on or after January 1, 1991,
and before January 1, 1994, by a certified reg-
istered nurse anesthetist who is medically di-
rected, the Secretary shall apply the same
methodology specified in subparagraph (A).
(ii) The conversion factor used under clause (i)
shall be—
(I) for services furnished in 1991, $10.50,
(II) for services furnished in 1992, $10.75, and
(III) for services furnished in 1993, $11.00.
(iii) In the case of services of a certified reg-
istered nurse anesthetist who is medically di-
rected or medically supervised by a physician
which are furnished on or after January 1, 1994,
the fee schedule amount shall be one-half of the
amount described in section 1395w–4(a)(5)(B) of
this title with respect to the physician.
(C) Notwithstanding subclauses (I) through (V)
of subparagraph (A)(i)—
(i) in the case of a 1990 conversion factor
that is greater than $16.50, the conversion fac-
tor for a calendar year after 1990 and before
1996 shall be the 1990 conversion factor reduced
by the product of the last digit of the calendar
year and one-fifth of the amount by which the
1990 conversion factor exceeds $16.50; and
(ii) in the case of a 1990 conversion factor
that is greater than $15.49 but less than $16.51,
the conversion factor for a calendar year after
1990 and before 1996 shall be the greater of—
(I) the 1990 conversion factor, or
(II) the conversion factor specified in sub-
paragraph (A)(i) for the year involved.
(D) Notwithstanding subparagraph (C), in no
case may the conversion factor used to deter-
mine payment for services in a fee schedule area
or locality under this subsection, as adjusted by
the adjustment factors specified in subpara-
graphs 13 (A)(iii), exceed the conversion factor
used to determine the amount paid for physi-
cians’ services that are anesthesia services in
the area or locality.
(5)(A) Payment for the services of a certified
registered nurse anesthetist (for which payment
may otherwise be made under this part) may be
made on the basis of a claim or request for pay-
ment presented by the certified registered nurse
anesthetist furnishing such services, or by a hos-
pital, critical access hospital, physician, group
practice, or ambulatory surgical center with
which the certified registered nurse anesthetist
furnishing such services has an employment or
contractual relationship that provides for pay-
ment to be made under this part for such serv-
ices to such hospital, critical access hospital,
physician, group practice, or ambulatory sur-
gical center.
(B) No hospital or critical access hospital that
presents a claim or request for payment for
services of a certified nurse anesthetist under
this part may treat any uncollected coinsurance
amount imposed under this part with respect to
such services as a bad debt of such hospital or
critical access hospital for purposes of this sub-
chapter.
(6) If an adjustment under paragraph (3)(B) re-
sults in a reduction in the reasonable charge for
a physicians’ service and a nonparticipating
physician furnishes the service to an individual
entitled to benefits under this part after the ef-
fective date of the reduction, the physician’s ac-
tual charge is subject to a limit under section
1395u(j)(1)(D) of this title.
(m) Incentive payments for physicians’ services
furnished in underserved areas
(1) In the case of physicians’ services furnished
in a year to an individual, who is covered under
the insurance program established by this part
and who incurs expenses for such services, in an
area
that
is
designated
(under
section
254e(a)(1)(A) of this title) as a health profes-
sional shortage area as identified by the Sec-
retary prior to the beginning of such year, in ad-
dition to the amount otherwise paid under this
part, there also shall be paid to the physician
(or to an employer or facility in the cases de-
scribed in clause (A) of section 1395u(b)(6) of this
title) (on a monthly or quarterly basis) from the
Federal Supplementary Medical Insurance Trust
Fund an amount equal to 10 percent of the pay-
ment amount for the service under this part.
(2) For each health professional shortage area
identified in paragraph (1) that consists of an
entire county, the Secretary shall provide for
the additional payment under paragraph (1)
without any requirement on the physician to
identify the health professional shortage area
involved. The Secretary may implement the pre-
vious sentence using the method specified in
subsection (u)(4)(C).
(3) The Secretary shall post on the Internet
website of the Centers for Medicare & Medicaid
Services a list of the health professional short-
age areas identified in paragraph (1) that consist
of a partial county to facilitate the additional
payment under paragraph (1) in such areas.
(4) There shall be no administrative or judicial
review under section 1395ff of this title, section
1395oo of this title, or otherwise, respecting—
(A) the identification of a county or area;
(B) the assignment of a specialty of any phy-
sician under this paragraph;
(C) the assignment of a physician to a coun-
ty under this subsection; or
(D) the assignment of a postal ZIP Code to a
county or other area under this subsection.
(n) Payments to hospital outpatient departments
for radiology; amount; definitions
(1)(A) 14 The aggregate amount of the pay-
ments to be made for all or part of a cost report-
ing period for services described in subsection
(a)(2)(E)(i) furnished under this part on or after
October 1, 1988, and before January 1, 1999, and
for services described in subsection (a)(2)(E)(ii)
furnished under this part on or after October 1,
1989, and before January 1, 1999, shall be equal to
the lesser of—
(i) the amount determined with respect to
such services under subsection (a)(2)(B), or
(ii) the blend amount for radiology services
and diagnostic procedures determined in ac-
cordance with subparagraph (B).
(B)(i) The blend amount for radiology services
and diagnostic procedures for a cost reporting
period is the sum of—
Page 3039
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(I) the cost proportion (as defined in clause
(ii)) of the amount described in subparagraph
(A)(i); and
(II) the charge proportion (as defined in
clause (ii)(II)) of 62 percent (for services de-
scribed in subsection (a)(2)(E)(i)), or (for proce-
dures described in subsection (a)(2)(E)(ii)), 42
percent or such other percent established by
the Secretary (or carriers acting pursuant to
guidelines issued by the Secretary) based on
prevailing charges established with actual
charge data, of the prevailing charge or (for
services described in subsection (a)(2)(E)(i) fur-
nished on or after April 1, 1989 and for services
described in subsection (a)(2)(E)(ii) furnished
on or after January 1, 1992) the fee schedule
amount established for participating physi-
cians for the same services as if they were fur-
nished in a physician’s office in the same lo-
cality as determined under section 1395u(b) of
this title (or, in the case of services furnished
on or after January 1, 1992, under section
1395w–4 of this title), less the amount a pro-
vider may charge as described in clause (ii) of
section 1395cc(a)(2)(A) of this title.
(ii) In this subparagraph:
(I) The term ‘‘cost proportion’’ means 50 per-
cent, except that such term means 65 percent
in the case of outpatient radiology services for
portions of cost reporting periods which occur
in fiscal year 1989 and in the case of diagnostic
procedures described in subsection (a)(2)(E)(ii)
for portions of cost reporting periods which
occur in fiscal year 1990, and such term means
42 percent in the case of outpatient radiology
services for portions of cost reporting periods
beginning on or after January 1, 1991.
(II) The term ‘‘charge proportion’’ means 100
percent minus the cost proportion.
(o) Limitation on benefit for payment for thera-
peutic shoes for individuals with severe dia-
betic foot disease
(1) In the case of shoes described in section
1395x(s)(12) of this title—
(A) no payment may be made under this
part, with respect to any individual for any
year, for the furnishing of—
(i) more than one pair of custom molded
shoes (including inserts provided with such
shoes) and 2 additional pairs of inserts for
such shoes, or
(ii) more than one pair of extra-depth
shoes (not including inserts provided with
such shoes) and 3 pairs of inserts for such
shoes, and
(B) with respect to expenses incurred in any
calendar year, no more than the amount of
payment applicable under paragraph (2) shall
be considered as incurred expenses for pur-
poses of subsections (a) and (b).
Payment for shoes (or inserts) under this part
shall be considered to include payment for any
expenses for the fitting of such shoes (or in-
serts).
(2)(A) Except as provided by the Secretary
under subparagraphs (B) and (C), the amount of
payment under this paragraph for custom mold-
ed shoes, extra-depth shoes, and inserts shall be
the amount determined for such items by the
Secretary under section 1395m(h) of this title.
(B) The Secretary may establish payment
amounts for shoes and inserts that are lower
than the amount established under section
1395m(h) of this title if the Secretary finds that
shoes and inserts of an appropriate quality are
readily available at or below the amount estab-
lished under such section.
(C) In accordance with procedures established
by the Secretary, an individual entitled to bene-
fits with respect to shoes described in section
1395x(s)(12) of this title may substitute modifica-
tion of such shoes instead of obtaining one (or
more, as specified by the Secretary) pair of in-
serts (other than the original pair of inserts
with respect to such shoes). In such case, the
Secretary shall substitute, for the payment
amount established under section 1395m(h) of
this title, a payment amount that the Secretary
estimates will assure that there is no net in-
crease in expenditures under this subsection as a
result of this subparagraph.
(3) In this subchapter, the term ‘‘shoes’’ in-
cludes, except for purposes of subparagraphs
(A)(ii) and (B) of paragraph (2), inserts for extra-
depth shoes.
(p)
Repealed.
Pub.
L.
103–432,
title
I,
§ 123(b)(2)(A)(ii), Oct. 31, 1994, 108 Stat. 4411
(q) Requests for payment to include information
on referring physician
(1) Each request for payment, or bill sub-
mitted, for an item or service furnished by an
entity for which payment may be made under
this part and for which the entity knows or has
reason to believe there has been a referral by a
referring physician (within the meaning of sec-
tion 1395nn of this title) shall include the name
and unique physician identification number for
the referring physician.
(2)(A) In the case of a request for payment for
an item or service furnished by an entity under
this part on an assignment-related basis and for
which information is required to be provided
under paragraph (1) but not included, payment
may be denied under this part.
(B) In the case of a request for payment for an
item or service furnished by an entity under this
part not submitted on an assignment-related
basis and for which information is required to be
provided under paragraph (1) but not included—
(i) if the entity knowingly and willfully fails
to provide such information promptly upon re-
quest of the Secretary or a carrier, the entity
may be subject to a civil money penalty in an
amount not to exceed $2,000, and
(ii) if the entity knowingly, willfully, and in
repeated cases fails, after being notified by the
Secretary of the obligations and requirements
of this subsection to provide the information
required under paragraph (1), the entity may
be subject to exclusion from participation in
the programs under this chapter for a period
not to exceed 5 years, in accordance with the
procedures of subsections (c), (f), and (g) of
section 1320a–7 of this title.
The provisions of section 1320a–7a of this title
(other than subsections (a) and (b)) shall apply
to civil money penalties under clause (i) in the
same manner as they apply to a penalty or pro-
ceeding under section 1320a–7a(a) of this title.
Page 3040
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(r) Cap on prevailing charge; billing on assign-
ment-related basis
(1) With respect to services described in sec-
tion 1395x(s)(2)(K)(ii) of this title (relating to
nurse practitioner or clinical nurse specialist
services), payment may be made on the basis of
a claim or request for payment presented by the
nurse practitioner or clinical nurse specialist
furnishing such services, or by a hospital, crit-
ical access hospital, skilled nursing facility or
nursing facility (as defined in section 1396r(a) of
this title), physician, group practice, or ambula-
tory surgical center with which the nurse prac-
titioner or clinical nurse specialist has an em-
ployment or contractual relationship that pro-
vides for payment to be made under this part for
such services to such hospital, physician, group
practice, or ambulatory surgical center.
(2) No hospital or critical access hospital that
presents a claim or request for payment under
this part for services described in section
1395x(s)(2)(K)(ii) of this title may treat any un-
collected coinsurance amount imposed under
this part with respect to such services as a bad
debt of such hospital for purposes of this sub-
chapter.
(s) Other prepaid organizations
The Secretary may not provide for payment
under subsection (a)(1)(A) with respect to an or-
ganization unless the organization provides as-
surances satisfactory to the Secretary that the
organization meets the requirement of section
1395cc(f) of this title (relating to maintaining
written policies and procedures respecting ad-
vance directives).
(t) Prospective payment system for hospital out-
patient department services
(1) Amount of payment
(A) In general
With respect to covered OPD services (as
defined in subparagraph (B)) furnished dur-
ing a year beginning with 1999, the amount
of payment under this part shall be deter-
mined under a prospective payment system
established by the Secretary in accordance
with this subsection.
(B) Definition of covered OPD services
For purposes of this subsection, the term
‘‘covered OPD services’’—
(i) means hospital outpatient services
designated by the Secretary;
(ii) subject to clause (iv), includes inpa-
tient hospital services designated by the
Secretary that are covered under this part
and furnished to a hospital inpatient who
(I) is entitled to benefits under part A but
has exhausted benefits for inpatient hos-
pital services during a spell of illness, or
(II) is not so entitled;
(iii)
includes
implantable
items
de-
scribed in paragraph (3), (6), or (8) of sec-
tion 1395x(s) of this title;
(iv) does not include any therapy serv-
ices described in subsection (a)(8) or ambu-
lance services, for which payment is made
under a fee schedule described in section
1395m(k) of this title or section 1395m(l) of
this title and does not include screening
mammography
(as
defined
in
section
1395x(jj) of this title), diagnostic mammog-
raphy, or personalized prevention plan
services (as defined in section 1395x(hhh)(1)
of this title); and
(v) does not include applicable items and
services (as defined in subparagraph (A) of
paragraph (21)) that are furnished on or
after January 1, 2017, by an off-campus
outpatient department of a provider (as
defined in subparagraph (B) of such para-
graph).
(2) System requirements
Under the payment system—
(A) the Secretary shall develop a classi-
fication system for covered OPD services;
(B) the Secretary may establish groups of
covered OPD services, within the classifica-
tion system described in subparagraph (A),
so that services classified within each group
are comparable clinically and with respect
to the use of resources and so that an
implantable item is classified to the group
that includes the service to which the item
relates;
(C) the Secretary shall, using data on
claims from 1996 and using data from the
most recent available cost reports, establish
relative payment weights for covered OPD
services (and any groups of such services de-
scribed in subparagraph (B)) based on me-
dian (or, at the election of the Secretary,
mean) hospital costs and shall determine
projections of the frequency of utilization of
each such service (or group of services) in
1999;
(D) subject to paragraph (19), the Sec-
retary shall determine a wage adjustment
factor to adjust the portion of payment and
coinsurance attributable to labor-related
costs for relative differences in labor and
labor-related costs across geographic regions
in a budget neutral manner;
(E) the Secretary shall establish, in a
budget neutral manner, outlier adjustments
under paragraph (5) and transitional pass-
through payments under paragraph (6) and
temporary additional payments for non-
opioid treatments for pain relief under para-
graph (16)(G), and other adjustments as de-
termined to be necessary to ensure equitable
payments, such as adjustments for certain
classes of hospitals;
(F) the Secretary shall develop a method
for controlling unnecessary increases in the
volume of covered OPD services;
(G) the Secretary shall create additional
groups of covered OPD services that classify
separately those procedures that utilize con-
trast agents from those that do not; and
(H)
with
respect
to
devices
of
brachytherapy consisting of a seed or seeds
(or radioactive source), the Secretary shall
create additional groups of covered OPD
services that classify such devices sepa-
rately from the other services (or group of
services) paid for under this subsection in a
manner reflecting the number, isotope, and
radioactive intensity of such devices fur-
nished, including separate groups for palla-
Page 3041
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
dium-103 and iodine-125 devices and for
stranded and non-stranded devices furnished
on or after July 1, 2007.
For purposes of subparagraph (B), items and
services within a group shall not be treated as
‘‘comparable with respect to the use of re-
sources’’ if the highest median cost (or mean
cost, if elected by the Secretary under sub-
paragraph (C)) for an item or service within
the group is more than 2 times greater than
the lowest median cost (or mean cost, if so
elected) for an item or service within the
group; except that the Secretary may make
exceptions in unusual cases, such as low vol-
ume items and services, but may not make
such an exception in the case of a drug or bio-
logical that has been designated as an orphan
drug under section 360bb of title 21.
(3) Calculation of base amounts
(A) Aggregate amounts that would be pay-
able if deductibles were disregarded
The Secretary shall estimate the sum of—
(i) the total amounts that would be pay-
able from the Trust Fund under this part
for covered OPD services in 1999, deter-
mined without regard to this subsection,
as though the deductible under subsection
(b) did not apply, and
(ii) the total amounts of copayments es-
timated to be paid under this subsection
by beneficiaries to hospitals for covered
OPD services in 1999, as though the deduct-
ible under subsection (b) did not apply.
(B) Unadjusted copayment amount
(i) In general
For purposes of this subsection, subject
to clause (ii), the ‘‘unadjusted copayment
amount’’ applicable to a covered OPD serv-
ice (or group of such services) is 20 percent
of the national median of the charges for
the service (or services within the group)
furnished during 1996, updated to 1999
using the Secretary’s estimate of charge
growth during the period.
(ii) Adjusted to be 20 percent when fully
phased in
If the pre-deductible payment percentage
for a covered OPD service (or group of such
services) furnished in a year would be
equal to or exceed 80 percent, then the
unadjusted copayment amount shall be 20
percent of amount determined under sub-
paragraph (D).
(iii) Rules for new services
The Secretary shall establish rules for
establishment of an unadjusted copayment
amount for a covered OPD service not fur-
nished during 1996, based upon its classi-
fication within a group of such services.
(C) Calculation of conversion factors
(i) For 1999
(I) In general
The Secretary shall establish a 1999
conversion factor for determining the
medicare OPD fee schedule amounts for
each covered OPD service (or group of
such services) furnished in 1999. Such
conversion factor shall be established on
the basis of the weights and frequencies
described in paragraph (2)(C) and in such
a manner that the sum for all services
and groups of the products (described in
subclause (II) for each such service or
group) equals the total projected amount
described in subparagraph (A).
(II) Product described
The Secretary shall determine for each
service or group the product of the medi-
care OPD fee schedule amounts (taking
into account appropriate adjustments
described in paragraphs (2)(D) and (2)(E))
and the estimated frequencies for such
service or group.
(ii) Subsequent years
Subject to paragraph (8)(B), the Sec-
retary shall establish a conversion factor
for covered OPD services furnished in sub-
sequent years in an amount equal to the
conversion factor established under this
subparagraph and applicable to such serv-
ices furnished in the previous year in-
creased by the OPD fee schedule increase
factor specified under clause (iv) for the
year involved.
(iii) Adjustment for service mix changes
Insofar as the Secretary determines that
the adjustments for service mix under
paragraph (2) for a previous year (or esti-
mates that such adjustments for a future
year) did (or are likely to) result in a
change in aggregate payments under this
subsection during the year that are a re-
sult of changes in the coding or classifica-
tion of covered OPD services that do not
reflect real changes in service mix, the
Secretary may adjust the conversion fac-
tor computed under this subparagraph for
subsequent years so as to eliminate the ef-
fect
of
such
coding
or
classification
changes.
(iv) OPD fee schedule increase factor
For purposes of this subparagraph, sub-
ject to paragraph (17) and subparagraph (F)
of this paragraph, the ‘‘OPD fee schedule
increase factor’’ for services furnished in a
year is equal to the market basket per-
centage increase applicable under section
1395ww(b)(3)(B)(iii) of this title to hospital
discharges occurring during the fiscal year
ending in such year, reduced by 1 percent-
age point for such factor for services fur-
nished in each of 2000 and 2002. In applying
the previous sentence for years beginning
with 2000, the Secretary may substitute for
the market basket percentage increase an
annual percentage increase that is com-
puted and applied with respect to covered
OPD services furnished in a year in the
same manner as the market basket per-
centage increase is determined and applied
to inpatient hospital services for dis-
charges occurring in a fiscal year.
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(D) Calculation of medicare OPD fee sched-
ule amounts
The Secretary shall compute a medicare
OPD fee schedule amount for each covered
OPD service (or group of such services) fur-
nished in a year, in an amount equal to the
product of—
(i) the conversion factor computed under
subparagraph (C) for the year, and
(ii) the relative payment weight (deter-
mined under paragraph (2)(C)) for the serv-
ice or group.
(E) Pre-deductible payment percentage
The pre-deductible payment percentage for
a covered OPD service (or group of such
services) furnished in a year is equal to the
ratio of—
(i)
the
medicare
OPD
fee
schedule
amount established under subparagraph
(D) for the year, minus the unadjusted co-
payment amount determined under sub-
paragraph (B) for the service or group, to
(ii) the medicare OPD fee schedule
amount determined under subparagraph
(D) for the year for such service or group.
(F) Productivity and other adjustment
After determining the OPD fee schedule
increase factor under subparagraph (C)(iv),
the Secretary shall reduce such increase fac-
tor—
(i) for 2012 and subsequent years, by the
productivity adjustment described in sec-
tion 1395ww(b)(3)(B)(xi)(II) of this title;
and
(ii) for each of 2010 through 2019, by the
adjustment described in subparagraph (G).
The application of this subparagraph may
result in the increase factor under subpara-
graph (C)(iv) being less than 0.0 for a year,
and may result in payment rates under the
payment system under this subsection for a
year being less than such payment rates for
the preceding year.
(G) Other adjustment
For purposes of subparagraph (F)(ii), the
adjustment described in this subparagraph
is—
(i) for each of 2010 and 2011, 0.25 percent-
age point;
(ii) for each of 2012 and 2013, 0.1 percent-
age point;
(iii) for 2014, 0.3 percentage point;
(iv) for each of 2015 and 2016, 0.2 percent-
age point; and
(v) for each of 2017, 2018, and 2019, 0.75
percentage point.
(4) Medicare payment amount
The amount of payment made from the
Trust Fund under this part for a covered OPD
service (and such services classified within a
group) furnished in a year is determined, sub-
ject to paragraph (7), as follows:
(A) Fee schedule adjustments
The medicare OPD fee schedule amount
(computed under paragraph (3)(D)) for the
service or group and year is adjusted for rel-
ative differences in the cost of labor and
other factors determined by the Secretary,
as computed under paragraphs (2)(D) and
(2)(E).
(B) Subtract applicable deductible
Reduce the adjusted amount determined
under subparagraph (A) by the amount of
the deductible under subsection (b), to the
extent applicable.
(C) Apply payment proportion to remainder
The amount of payment is the amount so
determined under subparagraph (B) multi-
plied by the pre-deductible payment percent-
age (as determined under paragraph (3)(E))
for the service or group and year involved,
plus the amount of any reduction in the co-
payment amount attributable to paragraph
(8)(C).
(5) Outlier adjustment
(A) In general
Subject to subparagraph (D), the Secretary
shall provide for an additional payment for
each covered OPD service (or group of serv-
ices) for which a hospital’s charges, adjusted
to cost, exceed—
(i) a fixed multiple of the sum of—
(I) the applicable medicare OPD fee
schedule amount determined under para-
graph (3)(D), as adjusted under paragraph
(4)(A) (other than for adjustments under
this paragraph or paragraph (6)); and
(II) any transitional pass-through pay-
ment under paragraph (6); and
(ii) at the option of the Secretary, such
fixed dollar amount as the Secretary may
establish.
(B) Amount of adjustment
The amount of the additional payment
under subparagraph (A) shall be determined
by the Secretary and shall approximate the
marginal cost of care beyond the applicable
cutoff point under such subparagraph.
(C) Limit on aggregate outlier adjustments
(i) In general
The total of the additional payments
made under this paragraph for covered
OPD services furnished in a year (as esti-
mated by the Secretary before the begin-
ning of the year) may not exceed the appli-
cable percentage (specified in clause (ii)) of
the total program payments estimated to
be made under this subsection for all cov-
ered OPD services furnished in that year.
If this paragraph is first applied to less
than a full year, the previous sentence
shall apply only to the portion of such
year.
(ii) Applicable percentage
For purposes of clause (i), the term ‘‘ap-
plicable percentage’’ means a percentage
specified by the Secretary up to (but not
to exceed)—
(I) for a year (or portion of a year) be-
fore 2004, 2.5 percent; and
(II) for 2004 and thereafter, 3.0 percent.
(D) Transitional authority
In applying subparagraph (A) for covered
OPD services furnished before January 1,
2002, the Secretary may—
Page 3043
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(i) apply such subparagraph to a bill for
such services related to an outpatient en-
counter (rather than for a specific service
or group of services) using OPD fee sched-
ule amounts and transitional pass-through
payments covered under the bill; and
(ii) use an appropriate cost-to-charge
ratio for the hospital involved (as deter-
mined by the Secretary), rather than for
specific departments within the hospital.
(E) Exclusion of separate drug and biological
APCS from outlier payments
No additional payment shall be made
under subparagraph (A) in the case of ambu-
latory payment classification groups estab-
lished separately for drugs or biologicals.
(6) Transitional pass-through for additional
costs of innovative medical devices, drugs,
and biologicals
(A) In general
The Secretary shall provide for an addi-
tional payment under this paragraph for any
of the following that are provided as part of
a covered OPD service (or group of services):
(i) Current orphan drugs
A drug or biological that is used for a
rare disease or condition with respect to
which the drug or biological has been des-
ignated as an orphan drug under section
360bb of title 21 if payment for the drug or
biological as an outpatient hospital serv-
ice under this part was being made on the
first date that the system under this sub-
section is implemented.
(ii) Current cancer therapy drugs and
biologicals and brachytherapy
A drug or biological that is used in can-
cer therapy, including (but not limited to)
a chemotherapeutic agent, an antiemetic,
a hematopoietic growth factor, a colony
stimulating factor, a biological response
modifier, a bisphosphonate, and a device of
brachytherapy or temperature monitored
cryoablation, if payment for such drug, bi-
ological, or device as an outpatient hos-
pital service under this part was being
made on such first date.
(iii) Current radiopharmaceutical drugs
and biological products
A radiopharmaceutical drug or biologi-
cal product used in diagnostic, monitoring,
and therapeutic nuclear medicine proce-
dures if payment for the drug or biological
as an outpatient hospital service under
this part was being made on such first
date.
(iv) New medical devices, drugs, and
biologicals
A medical device, drug, or biological not
described in clause (i), (ii), or (iii) if—
(I) payment for the device, drug, or bi-
ological as an outpatient hospital serv-
ice under this part was not being made
as of December 31, 1996; and
(II) the cost of the drug or biological or
the average cost of the category of de-
vices is not insignificant in relation to
the OPD fee schedule amount (as cal-
culated under paragraph (3)(D)) payable
for the service (or group of services) in-
volved.
(B) Use of categories in determining eligi-
bility of a device for pass-through pay-
ments
The following provisions apply for pur-
poses of determining whether a medical de-
vice qualifies for additional payments under
clause (ii) or (iv) of subparagraph (A):
(i) Establishment of initial categories
(I) In general
The Secretary shall initially establish
under this clause categories of medical
devices based on type of device by April
1, 2001. Such categories shall be estab-
lished in a manner such that each med-
ical device that meets the requirements
of clause (ii) or (iv) of subparagraph (A)
as of January 1, 2001, is included in such
a category and no such device is included
in more than one category. For purposes
of the preceding sentence, whether a
medical device meets such requirements
as of such date shall be determined on
the basis of the program memoranda
issued before such date.
(II)
Authorization
of
implementation
other than through regulations
The categories may be established
under this clause by program memo-
randum or otherwise, after consultation
with groups representing hospitals, man-
ufacturers of medical devices, and other
affected parties.
(ii) Establishing criteria for additional cat-
egories
(I) In general
The Secretary shall establish criteria
that will be used for creation of addi-
tional categories (other than those es-
tablished under clause (i)) through rule-
making (which may include use of an in-
terim final rule with comment period).
(II) Standard
Such categories shall be established
under this clause in a manner such that
no medical device is described by more
than one category. Such criteria shall
include a test of whether the average
cost of devices that would be included in
a category and are in use at the time the
category is established is not insignifi-
cant,
as
described
in
subparagraph
(A)(iv)(II).
(III) Deadline
Criteria shall first be established under
this clause by July 1, 2001. The Secretary
may
establish
in
compelling
cir-
cumstances categories under this clause
before the date such criteria are estab-
lished.
(IV) Adding categories
The Secretary shall promptly establish
a new category of medical devices under
Page 3044
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
this clause for any medical device that
meets the requirements of subparagraph
(A)(iv) and for which none of the cat-
egories in effect (or that were previously
in effect) is appropriate.
(iii) Period for which category is in effect
Subject to subparagraph (K), a category
of medical devices established under clause
(i) or (ii) shall be in effect for a period of
at least 2 years, but not more than 3 years,
that begins—
(I) in the case of a category established
under clause (i), on the first date on
which payment was made under this
paragraph for any device described by
such category (including payments made
during the period before April 1, 2001);
and
(II) in the case of any other category,
on the first date on which payment is
made under this paragraph for any med-
ical device that is described by such cat-
egory.
(iv) Requirements treated as met
A medical device shall be treated as
meeting the requirements of subparagraph
(A)(iv), regardless of whether the device
meets the requirement of subclause (I) of
such subparagraph, if—
(I) the device is described by a cat-
egory established and in effect under
clause (i); or
(II) the device is described by a cat-
egory established and in effect under
clause (ii) and an application under sec-
tion 360e of title 21 has been approved
with respect to the device, or the device
has been cleared for market under sec-
tion 360(k) of title 21, or the device is ex-
empt from the requirements of section
360(k) of title 21 pursuant to subsection
(l) or (m) of section 360 of title 21 or sec-
tion 360j(g) of title 21.
Nothing in this clause shall be construed
as requiring an application or prior ap-
proval (other than that described in sub-
clause (II)) in order for a covered device
described by a category to qualify for pay-
ment under this paragraph.
(C) Limited period of payment
(i) Drugs and biologicals
Subject to subparagraph (G), the pay-
ment under this paragraph with respect to
a drug or biological shall only apply dur-
ing a period of at least 2 years, but not
more than 3 years, that begins—
(I) on the first date this subsection is
implemented in the case of a drug or bio-
logical described in clause (i), (ii), or (iii)
of subparagraph (A) and in the case of a
drug or biological described in subpara-
graph (A)(iv) and for which payment
under this part is made as an outpatient
hospital service before such first date; or
(II) in the case of a drug or biological
described in subparagraph (A)(iv) not de-
scribed in subclause (I), on the first date
on which payment is made under this
part for the drug or biological as an out-
patient hospital service.
(ii) Medical devices
Payment shall be made under this para-
graph with respect to a medical device
only if such device—
(I) is described by a category of med-
ical devices established and in effect
under subparagraph (B); and
(II) is provided as part of a service (or
group of services) paid for under this
subsection and provided during the pe-
riod for which such category is in effect
under such subparagraph.
(D) Amount of additional payment
Subject
to
subparagraph
(E)(iii),
the
amount of the payment under this paragraph
with respect to a device, drug, or biological
provided as part of a covered OPD service
is—
(i) subject to subparagraph (H), in the
case of a drug or biological, the amount by
which the amount determined under sec-
tion 1395u(o) of this title (or if the drug or
biological is covered under a competitive
acquisition
contract
under
section
1395w–3b of this title, an amount deter-
mined by the Secretary equal to the aver-
age price for the drug or biological for all
competitive acquisition areas and year es-
tablished under such section as calculated
and adjusted by the Secretary for purposes
of this paragraph) for the drug or biologi-
cal exceeds the portion of the otherwise
applicable medicare OPD fee schedule that
the Secretary determines is associated
with the drug or biological; or
(ii) in the case of a medical device, the
amount by which the hospital’s charges for
the device, adjusted to cost, exceeds the
portion of the otherwise applicable medi-
care OPD fee schedule that the Secretary
determines is associated with the device.
(E) Limit on aggregate annual adjustment
(i) In general
The total of the additional payments
made under this paragraph for covered
OPD services furnished in a year (as esti-
mated by the Secretary before the begin-
ning of the year) may not exceed the appli-
cable percentage (specified in clause (ii)) of
the total program payments estimated to
be made under this subsection for all cov-
ered OPD services furnished in that year.
If this paragraph is first applied to less
than a full year, the previous sentence
shall apply only to the portion of such
year. This clause shall not apply for 2018 or
2020.
(ii) Applicable percentage
For purposes of clause (i), the term ‘‘ap-
plicable percentage’’ means—
(I) for a year (or portion of a year) be-
fore 2004, 2.5 percent; and
(II) for 2004 and thereafter, a percent-
age specified by the Secretary up to (but
not to exceed) 2.0 percent.
Page 3045
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
15 So in original. Probably should be ‘‘a covered OPD’’.
(iii) Uniform prospective reduction if ag-
gregate limit projected to be exceeded
If the Secretary estimates before the be-
ginning of a year that the amount of the
additional payments under this paragraph
for the year (or portion thereof) as deter-
mined under clause (i) without regard to
this clause will exceed the limit estab-
lished under such clause, the Secretary
shall reduce pro rata the amount of each of
the additional payments under this para-
graph for that year (or portion thereof) in
order to ensure that the aggregate addi-
tional payments under this paragraph (as
so estimated) do not exceed such limit.
(F) Limitation of application of functional
equivalence standard
(i) In general
The Secretary may not publish regula-
tions that apply a functional equivalence
standard to a drug or biological under this
paragraph.
(ii) Application
Clause (i) shall apply to the application
of a functional equivalence standard to a
drug or biological on or after December 8,
2003, unless—
(I) such application was being made to
such drug or biological prior to Decem-
ber 8, 2003; and
(II) the Secretary applies such stand-
ard to such drug or biological only for
the purpose of determining eligibility of
such drug or biological for additional
payments under this paragraph and not
for the purpose of any other payments
under this subchapter.
(iii) Rule of construction
Nothing in this subparagraph shall be
construed to effect the Secretary’s author-
ity to deem a particular drug to be iden-
tical to another drug if the 2 products are
pharmaceutically
equivalent
and
bio-
equivalent, as determined by the Commis-
sioner of Food and Drugs.
(G) Pass-through extension for certain drugs
and biologicals
In the case of a drug or biological whose
period of pass-through status under this
paragraph ended on December 31, 2017, and
for which payment under this subsection was
packaged into a payment for a covered OPD
service (or group of services) furnished be-
ginning January 1, 2018, such pass-through
status shall be extended for a 2-year period
beginning on October 1, 2018.
(H) Temporary payment rule for certain
drugs and biologicals
In the case of a drug or biological whose
period of pass-through status under this
paragraph ended on December 31, 2017, and
for which payment under this subsection was
packaged into a payment for a covered OPD
service (or group of services) furnished be-
ginning
January
1,
2018,
the
payment
amount for such drug or biological under
this subsection that is furnished during the
period beginning on October 1, 2018, and end-
ing on March 31, 2019, shall be the greater
of—
(i) the payment amount that would oth-
erwise apply under subparagraph (D)(i) for
such drug or biological during such period;
or
(ii) the payment amount that applied
under such subparagraph (D)(i) for such
drug or biological on December 31, 2017.
(I) Special payment adjustment rules for last
quarter of 2018
In the case of a drug or biological whose
period of pass-through status under this
paragraph ended on December 31, 2017, and
for which payment under this subsection was
packaged into a payment amount for a cov-
ered OPD service (or group of services) be-
ginning January 1, 2018, the following rules
shall
apply
with
respect
to
payment
amounts under this subsection for covered a
OPD 15 service (or group of services) fur-
nished during the period beginning on Octo-
ber 1, 2018, and ending on December 31, 2018:
(i) The Secretary shall remove the pack-
aged costs of such drug or biological (as
determined by the Secretary) from the
payment amount under this subsection for
the covered OPD service (or group of serv-
ices) with which it is packaged.
(ii) The Secretary shall not make any
adjustments to payment amounts under
this subsection for a covered OPD service
(or group of services) for which no costs
were removed under clause (i).
(J) Additional pass-through extension and
special payment adjustment rule for cer-
tain diagnostic radiopharmaceuticals
In the case of a drug or biological fur-
nished in the context of a clinical study on
diagnostic imaging tests approved under a
coverage with evidence development deter-
mination whose period of pass-through sta-
tus under this paragraph concluded on De-
cember 31, 2018, and for which payment
under this subsection was packaged into a
payment for a covered OPD service (or group
of services) furnished beginning January 1,
2019, the Secretary shall—
(i) extend such pass-through status for
such drug or biological for the 9-month pe-
riod beginning on January 1, 2020;
(ii) remove, during such period, the
packaged costs of such drug or biological
(as determined by the Secretary) from the
payment amount under this subsection for
the covered OPD service (or group of serv-
ices) with which it is packaged; and
(iii) not make any adjustments to pay-
ment amounts under this subsection for a
covered OPD service (or group of services)
for which no costs were removed under
clause (ii).
(K) Pass-through extension for certain de-
vices
(i) In general
In the case of a device whose period of
pass-through status under this paragraph
Page 3046
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
will end on December 31, 2022, such pass-
through status shall be extended for a
1–year period beginning on January 1, 2023.
(ii) No adjustment for packaged costs
For purposes of the 1–year period de-
scribed in clause (i), the Secretary shall
not remove the packaged costs of such de-
vice (as determined by the Secretary) from
the payment amount under this subsection
for a covered OPD service (or group of
services) with which it is packaged.
(iii) No application of aggregate limit or
budget neutrality
Notwithstanding any other provision of
this subsection, this subparagraph shall
not be taken into account—
(I) in applying the limit on annual ag-
gregate adjustments under subparagraph
(E) for 2023; or
(II) in making any budget neutrality
adjustments under this subsection for
2023.
(7) Transitional adjustment to limit decline in
payment
(A) Before 2002
Subject to subparagraph (D), for covered
OPD services furnished before January 1,
2002, for which the PPS amount (as defined
in subparagraph (E)) is—
(i) at least 90 percent, but less than 100
percent, of the pre-BBA amount (as de-
fined in subparagraph (F)), the amount of
payment under this subsection shall be in-
creased by 80 percent of the amount of
such difference;
(ii) at least 80 percent, but less than 90
percent, of the pre-BBA amount, the
amount of payment under this subsection
shall be increased by the amount by which
(I) the product of 0.71 and the pre-BBA
amount, exceeds (II) the product of 0.70
and the PPS amount;
(iii) at least 70 percent, but less than 80
percent, of the pre-BBA amount, the
amount of payment under this subsection
shall be increased by the amount by which
(I) the product of 0.63 and the pre-BBA
amount, exceeds (II) the product of 0.60
and the PPS amount; or
(iv) less than 70 percent of the pre-BBA
amount, the amount of payment under
this subsection shall be increased by 21
percent of the pre-BBA amount.
(B) 2002
Subject to subparagraph (D), for covered
OPD services furnished during 2002, for
which the PPS amount is—
(i) at least 90 percent, but less than 100
percent, of the pre-BBA amount, the
amount of payment under this subsection
shall be increased by 70 percent of the
amount of such difference;
(ii) at least 80 percent, but less than 90
percent, of the pre-BBA amount, the
amount of payment under this subsection
shall be increased by the amount by which
(I) the product of 0.61 and the pre-BBA
amount, exceeds (II) the product of 0.60
and the PPS amount; or
(iii) less than 80 percent of the pre-BBA
amount, the amount of payment under
this subsection shall be increased by 13
percent of the pre-BBA amount.
(C) 2003
Subject to subparagraph (D), for covered
OPD services furnished during 2003, for
which the PPS amount is—
(i) at least 90 percent, but less than 100
percent, of the pre-BBA amount, the
amount of payment under this subsection
shall be increased by 60 percent of the
amount of such difference; or
(ii) less than 90 percent of the pre-BBA
amount, the amount of payment under
this subsection shall be increased by 6 per-
cent of the pre-BBA amount.
(D) Hold harmless provisions
(i) Temporary treatment for certain rural
hospitals
(I) In the case of a hospital located in a
rural area and that has not more than 100
beds or a sole community hospital (as de-
fined in section 1395ww(d)(5)(D)(iii) of this
title) located in a rural area, for covered
OPD services furnished before January 1,
2006, for which the PPS amount is less
than the pre-BBA amount, the amount of
payment under this subsection shall be in-
creased by the amount of such difference.
(II) In the case of a hospital located in a
rural area and that has not more than 100
beds and that is not a sole community hos-
pital
(as
defined
in
section
1395ww(d)(5)(D)(iii) of this title), for cov-
ered OPD services furnished on or after
January 1, 2006, and before January 1, 2013,
for which the PPS amount is less than the
pre-BBA amount, the amount of payment
under this subsection shall be increased by
the applicable percentage of the amount of
such difference. For purposes of the pre-
ceding sentence, the applicable percentage
shall be 95 percent with respect to covered
OPD services furnished in 2006, 90 percent
with respect to such services furnished in
2007, and 85 percent with respect to such
services furnished in 2008, 2009, 2010, 2011,
or 2012.
(III) In the case of a sole community hos-
pital
(as
defined
in
section
1395ww(d)(5)(D)(iii) of this title) that has
not more than 100 beds, for covered OPD
services furnished on or after January 1,
2009, and before January 1, 2013, for which
the PPS amount is less than the pre-BBA
amount, the amount of payment under
this subsection shall be increased by 85
percent of the amount of such difference.
In the case of covered OPD services fur-
nished on or after January 1, 2010, and be-
fore March 1, 2012, the preceding sentence
shall be applied without regard to the 100-
bed limitation.
(ii) Permanent treatment for cancer hos-
pitals and children’s hospitals
In the case of a hospital described in
clause (iii) or (v) of section 1395ww(d)(1)(B)
of this title, for covered OPD services for
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
which the PPS amount is less than the
pre-BBA amount, the amount of payment
under this subsection shall be increased by
the amount of such difference.
(E) PPS amount defined
In this paragraph, the term ‘‘PPS amount’’
means, with respect to covered OPD serv-
ices, the amount payable under this sub-
chapter for such services (determined with-
out regard to this paragraph), including
amounts payable as copayment under para-
graph
(8),
coinsurance
under
section
1395cc(a)(2)(A)(ii) of this title, and the de-
ductible under subsection (b).
(F) Pre-BBA amount defined
(i) In general
In
this
paragraph,
the
‘‘pre-BBA
amount’’ means, with respect to covered
OPD services furnished by a hospital in a
year, an amount equal to the product of
the reasonable cost of the hospital for such
services for the portions of the hospital’s
cost reporting period (or periods) occur-
ring in the year and the base OPD pay-
ment-to-cost ratio for the hospital (as de-
fined in clause (ii)).
(ii) Base payment-to-cost ratio defined
For purposes of this subparagraph, the
‘‘base payment-to-cost ratio’’ for a hos-
pital means the ratio of—
(I) the hospital’s reimbursement under
this part for covered OPD services fur-
nished during the cost reporting period
ending in 1996 (or in the case of a hos-
pital that did not submit a cost report
for such period, during the first subse-
quent cost reporting period ending be-
fore 2001 for which the hospital sub-
mitted a cost report), including any re-
imbursement for such services through
cost-sharing described in subparagraph
(E), to
(II) the reasonable cost of such services
for such period.
The Secretary shall determine such ratios
as if the amendments made by section 4521
of the Balanced Budget Act of 1997 were in
effect in 1996.
(G) Interim payments
The Secretary shall make payments under
this paragraph to hospitals on an interim
basis, subject to retrospective adjustments
based on settled cost reports.
(H) No effect on copayments
Nothing in this paragraph shall be con-
strued to affect the unadjusted copayment
amount described in paragraph (3)(B) or the
copayment amount under paragraph (8).
(I) Application without regard to budget neu-
trality
The additional payments made under this
paragraph—
(i) shall not be considered an adjustment
under paragraph (2)(E); and
(ii) shall not be implemented in a budget
neutral manner.
(8) Copayment amount
(A) In general
Except as provided in subparagraphs (B)
and (C), the copayment amount under this
subsection is the amount by which the
amount described in paragraph (4)(B) ex-
ceeds the amount of payment determined
under paragraph (4)(C).
(B) Election to offer reduced copayment
amount
The Secretary shall establish a procedure
under which a hospital, before the beginning
of a year (beginning with 1999), may elect to
reduce the copayment amount otherwise es-
tablished under subparagraph (A) for some
or all covered OPD services to an amount
that is not less than 20 percent of the medi-
care OPD fee schedule amount (computed
under paragraph (3)(D)) for the service in-
volved. Under such procedures, such reduced
copayment amount may not be further re-
duced or increased during the year involved
and the hospital may disseminate informa-
tion on the reduction of copayment amount
effected under this subparagraph.
(C) Limitation on copayment amount
(i) To inpatient hospital deductible amount
In no case shall the copayment amount
for a procedure performed in a year exceed
the amount of the inpatient hospital de-
ductible established under section 1395e(b)
of this title for that year.
(ii) To specified percentage
The Secretary shall reduce the national
unadjusted copayment amount for a cov-
ered OPD service (or group of such serv-
ices) furnished in a year in a manner so
that the effective copayment rate (deter-
mined on a national unadjusted basis) for
that service in the year does not exceed
the following percentage:
(I) For procedures performed in 2001, on
or after April 1, 2001, 57 percent.
(II) For procedures performed in 2002 or
2003, 55 percent.
(III) For procedures performed in 2004,
50 percent.
(IV) For procedures performed in 2005,
45 percent.
(V) For procedures performed in 2006
and thereafter, 40 percent.
(D) No impact on deductibles
Nothing in this paragraph shall be con-
strued as affecting a hospital’s authority to
waive the charging of a deductible under
subsection (b).
(E) Computation ignoring outlier and pass-
through adjustments
The copayment amount shall be computed
under subparagraph (A) as if the adjust-
ments under paragraphs (5) and (6) (and any
adjustment made under paragraph (2)(E) in
relation to such adjustments) had not oc-
curred.
(F) Part B rebatable drugs
In the case of a part B rebatable drug (as
defined
in
paragraph
(2)
of
section
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
1395w–3a(i) of this title, except if such drug
does not have a copayment amount as a re-
sult of application of subparagraph (E)) for
which payment under this part is not pack-
aged into a payment for a covered OPD serv-
ice (or group of services) furnished on or
after April 1, 2023, and the payment for such
drug under this subsection is the same as the
amount for a calendar quarter under para-
graph (3)(A)(ii)(I) of section 1395w–3a(i) of
this title, under the system under this sub-
section, in lieu of calculation of the copay-
ment amount and the amount of payment
otherwise applicable under this subsection
(other than the application of the limitation
described in subparagraph (C)), the provi-
sions of section 1395w–3a(i)(5) of this title
and paragraph (1)(EE) of subsection (a),
shall, as determined appropriate by the Sec-
retary, apply under this subsection in the
same manner as such provisions of section
1395w–3a(i)(5) of this title and subsection (a)
apply under such section and subsection.
(9) Periodic review and adjustments compo-
nents of prospective payment system
(A) Periodic review
The Secretary shall review not less often
than annually and revise the groups, the rel-
ative payment weights, and the wage and
other adjustments described in paragraph (2)
to take into account changes in medical
practice, changes in technology, the addi-
tion of new services, new cost data, and
other relevant information and factors. The
Secretary shall consult with an expert out-
side advisory panel composed of an appro-
priate selection of representatives of pro-
viders to review (and advise the Secretary
concerning) the clinical integrity of the
groups and weights. Such panel may use
data collected or developed by entities and
organizations (other than the Department of
Health and Human Services) in conducting
such review.
(B) Budget neutrality adjustment
If the Secretary makes adjustments under
subparagraph (A), then the adjustments for a
year may not cause the estimated amount of
expenditures under this part for the year to
increase or decrease from the estimated
amount of expenditures under this part that
would have been made if the adjustments
had not been made. In determining adjust-
ments under the preceding sentence for 2004
and 2005, the Secretary shall not take into
account under this subparagraph or para-
graph (2)(E) any expenditures that would not
have been made but for the application of
paragraph (14).
(C) Update factor
If the Secretary determines under meth-
odologies described in paragraph (2)(F) that
the volume of services paid for under this
subsection increased beyond amounts estab-
lished through those methodologies, the Sec-
retary may appropriately adjust the update
to the conversion factor otherwise applica-
ble in a subsequent year.
(10) Special rule for ambulance services
The Secretary shall pay for hospital out-
patient services that are ambulance services
on the basis described in section 1395x(v)(1)(U)
of this title, or, if applicable, the fee schedule
established under section 1395m(l) of this title.
(11) Special rules for certain hospitals
In the case of hospitals described in clause
(iii) or (v) of section 1395ww(d)(1)(B) of this
title—
(A) the system under this subsection shall
not apply to covered OPD services furnished
before January 1, 2000; and
(B) the Secretary may establish a separate
conversion factor for such services in a man-
ner that specifically takes into account the
unique costs incurred by such hospitals by
virtue of their patient population and serv-
ice intensity.
(12) Limitation on review
There shall be no administrative or judicial
review under section 1395ff of this title, 1395oo
of this title, or otherwise of—
(A) the development of the classification
system under paragraph (2), including the
establishment of groups and relative pay-
ment weights for covered OPD services, of
wage adjustment factors, other adjustments,
and methods described in paragraph (2)(F);
(B) the calculation of base amounts under
paragraph (3);
(C) periodic adjustments made under para-
graph (6);
(D) the establishment of a separate conver-
sion factor under paragraph (8)(B); and
(E) the determination of the fixed mul-
tiple, or a fixed dollar cutoff amount, the
marginal cost of care, or applicable percent-
age under paragraph (5) or the determina-
tion of insignificance of cost, the duration of
the additional payments, the determination
and deletion of initial and new categories
(consistent with subparagraphs (B) and (C) of
paragraph (6)), the portion of the medicare
OPD fee schedule amount associated with
particular devices, drugs, or biologicals, and
the application of any pro rata reduction
under paragraph (6).
(13) Authorization of adjustment for rural hos-
pitals
(A) Study
The Secretary shall conduct a study to de-
termine if, under the system under this sub-
section, costs incurred by hospitals located
in rural areas by ambulatory payment clas-
sification groups (APCs) exceed those costs
incurred by hospitals located in urban areas.
(B) Authorization of adjustment
Insofar as the Secretary determines under
subparagraph (A) that costs incurred by hos-
pitals located in rural areas exceed those
costs incurred by hospitals located in urban
areas, the Secretary shall provide for an ap-
propriate adjustment under paragraph (2)(E)
to reflect those higher costs by January 1,
2006.
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(14) Drug APC payment rates
(A) In general
The amount of payment under this sub-
section for a specified covered outpatient
drug (defined in subparagraph (B)) that is
furnished as part of a covered OPD service
(or group of services)—
(i) in 2004, in the case of—
(I) a sole source drug shall in no case
be less than 88 percent, or exceed 95 per-
cent, of the reference average wholesale
price for the drug;
(II) an innovator multiple source drug
shall in no case exceed 68 percent of the
reference average wholesale price for the
drug; or
(III) a noninnovator multiple source
drug shall in no case exceed 46 percent of
the reference average wholesale price for
the drug;
(ii) in 2005, in the case of—
(I) a sole source drug shall in no case
be less than 83 percent, or exceed 95 per-
cent, of the reference average wholesale
price for the drug;
(II) an innovator multiple source drug
shall in no case exceed 68 percent of the
reference average wholesale price for the
drug; or
(III) a noninnovator multiple source
drug shall in no case exceed 46 percent of
the reference average wholesale price for
the drug; or
(iii) in a subsequent year, shall be equal,
subject to subparagraph (E)—
(I) to the average acquisition cost for
the drug for that year (which, at the op-
tion of the Secretary, may vary by hos-
pital group (as defined by the Secretary
based on volume of covered OPD services
or other relevant characteristics)), as de-
termined by the Secretary taking into
account the hospital acquisition cost
survey data under subparagraph (D); or
(II) if hospital acquisition cost data
are not available, the average price for
the drug in the year established under
section 1395u(o) of this title, section
1395w–3a of this title, or section 1395w–3b
of this title, as the case may be, as cal-
culated and adjusted by the Secretary as
necessary for purposes of this paragraph.
(B) Specified covered outpatient drug de-
fined
(i) In general
In this paragraph, the term ‘‘specified
covered outpatient drug’’ means, subject
to clause (ii), a covered outpatient drug (as
defined in section 1396r–8(k)(2) of this title)
for which a separate ambulatory payment
classification group (APC) has been estab-
lished and that is—
(I) a radiopharmaceutical; or
(II) a drug or biological for which pay-
ment was made under paragraph (6) (re-
lating to pass-through payments) on or
before December 31, 2002.
(ii) Exception
Such term does not include—
(I) a drug or biological for which pay-
ment is first made on or after January 1,
2003, under paragraph (6);
(II) a drug or biological for which a
temporary HCPCS code has not been as-
signed; or
(III) during 2004 and 2005, an orphan
drug (as designated by the Secretary).
(C) Payment for designated orphan drugs
during 2004 and 2005
The amount of payment under this sub-
section for an orphan drug designated by the
Secretary under subparagraph (B)(ii)(III)
that is furnished as part of a covered OPD
service (or group of services) during 2004 and
2005 shall equal such amount as the Sec-
retary may specify.
(D) Acquisition cost survey for hospital out-
patient drugs
(i) Annual GAO surveys in 2004 and 2005
(I) In general
The Comptroller General of the United
States shall conduct a survey in each of
2004 and 2005 to determine the hospital
acquisition cost for each specified cov-
ered outpatient drug. Not later than
April 1, 2005, the Comptroller General
shall furnish data from such surveys to
the Secretary for use in setting the pay-
ment rates under subparagraph (A) for
2006.
(II) Recommendations
Upon the completion of such surveys,
the
Comptroller
General
shall
rec-
ommend to the Secretary the frequency
and methodology of subsequent surveys
to be conducted by the Secretary under
clause (ii).
(ii) Subsequent secretarial surveys
The Secretary, taking into account such
recommendations, shall conduct periodic
subsequent surveys to determine the hos-
pital acquisition cost for each specified
covered outpatient drug for use in setting
the payment rates under subparagraph (A).
(iii) Survey requirements
The surveys conducted under clauses (i)
and (ii) shall have a large sample of hos-
pitals that is sufficient to generate a sta-
tistically significant estimate of the aver-
age hospital acquisition cost for each spec-
ified covered outpatient drug. With respect
to the surveys conducted under clause (i),
the Comptroller General shall report to
Congress on the justification for the size of
the sample used in order to assure the va-
lidity of such estimates.
(iv) Differentiation in cost
In conducting surveys under clause (i),
the Comptroller General shall determine
and report to Congress if there is (and the
extent of any) variation in hospital acqui-
sition costs for drugs among hospitals
based on the volume of covered OPD serv-
ices performed by such hospitals or other
relevant characteristics of such hospitals
(as defined by the Comptroller General).
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(v) Comment on proposed rates
Not later than 30 days after the date the
Secretary promulgated proposed rules set-
ting forth the payment rates under sub-
paragraph (A) for 2006, the Comptroller
General shall evaluate such proposed rates
and submit to Congress a report regarding
the appropriateness of such rates based on
the surveys the Comptroller General has
conducted under clause (i).
(E) Adjustment in payment rates for over-
head costs
(i) MedPAC report on drug APC design
The Medicare Payment Advisory Com-
mission shall submit to the Secretary, not
later than July 1, 2005, a report on adjust-
ment of payment for ambulatory payment
classifications for specified covered out-
patient drugs to take into account over-
head and related expenses, such as phar-
macy services and handling costs. Such re-
port shall include—
(I) a description and analysis of the
data available with regard to such ex-
penses;
(II) a recommendation as to whether
such a payment adjustment should be
made; and
(III) if such adjustment should be
made, a recommendation regarding the
methodology for making such an adjust-
ment.
(ii) Adjustment authorized
The Secretary may adjust the weights
for ambulatory payment classifications for
specified covered outpatient drugs to take
into account the recommendations con-
tained in the report submitted under
clause (i).
(F) Classes of drugs
For purposes of this paragraph:
(i) Sole source drugs
The term ‘‘sole source drug’’ means—
(I) a biological product (as defined
under section 1395x(t)(1) of this title); or
(II) a single source drug (as defined in
section 1396r–8(k)(7)(A)(iv) of this title).
(ii) Innovator multiple source drugs
The term ‘‘innovator multiple source
drug’’ has the meaning given such term in
section 1396r–8(k)(7)(A)(ii) of this title.
(iii) Noninnovator multiple source drugs
The term ‘‘noninnovator multiple source
drug’’ has the meaning given such term in
section 1396r–8(k)(7)(A)(iii) of this title.
(G) Reference average wholesale price
The term ‘‘reference average wholesale
price’’ means, with respect to a specified
covered outpatient drug, the average whole-
sale price for the drug as determined under
section 1395u(o) of this title as of May 1, 2003.
(H) Inapplicability of expenditures in deter-
mining conversion, weighting, and other
adjustment factors
Additional expenditures resulting from
this paragraph shall not be taken into ac-
count
in
establishing
the
conversion,
weighting, and other adjustment factors for
2004 and 2005 under paragraph (9), but shall
be taken into account for subsequent years.
(15) Payment for new drugs and biologicals
until HCPCS code assigned
With respect to payment under this part for
an outpatient drug or biological that is cov-
ered under this part and is furnished as part of
covered OPD services for which a HCPCS code
has not been assigned, the amount provided
for payment for such drug or biological under
this part shall be equal to 95 percent of the av-
erage wholesale price for the drug or biologi-
cal.
(16) Miscellaneous provisions
(A) Application of reclassification of certain
hospitals
If a hospital is being treated as being lo-
cated
in
a
rural
area
under
section
1395ww(d)(8)(E) of this title, that hospital
shall be treated under this subsection as
being located in that rural area.
(B) Threshold for establishment of separate
APCS for drugs
The Secretary shall reduce the threshold
for the establishment of separate ambula-
tory payment classification groups (APCs)
with respect to drugs or biologicals to $50
per administration for drugs and biologicals
furnished in 2005 and 2006.
(C) Payment for devices of brachytherapy
and therapeutic radiopharmaceuticals at
charges adjusted to cost
Notwithstanding the preceding provisions
of
this
subsection,
for
a
device
of
brachytherapy consisting of a seed or seeds
(or radioactive source) furnished on or after
January 1, 2004, and before January 1, 2010,
and for therapeutic radiopharmaceuticals
furnished on or after January 1, 2008, and be-
fore January 1, 2010, the payment basis for
the device or therapeutic radiopharma-
ceutical under this subsection shall be equal
to the hospital’s charges for each device or
therapeutic radiopharmaceutical furnished,
adjusted to cost. Charges for such devices or
therapeutic radiopharmaceuticals shall not
be included in determining any outlier pay-
ment under this subsection.
(D) Special payment rule
(i) In general
In the case of covered OPD services fur-
nished on or after April 1, 2013, in a hos-
pital described in clause (ii), if—
(I) the payment rate that would other-
wise apply under this subsection for
stereotactic
radiosurgery,
complete
course of treatment of cranial lesion(s)
consisting of 1 session that is multi-
source Cobalt 60 based (identified as of
January 1, 2013, by HCPCS code 77371
(and any succeeding code) and reim-
bursed as of such date under APC 0127
(and
any
succeeding
classification
group)); exceeds
(II) the payment rate that would other-
wise apply under this subsection for lin-
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
ear
accelerator
based
stereotactic
radiosurgery, complete course of therapy
in one session (identified as of January 1,
2013, by HCPCS code G0173 (and any suc-
ceeding code) and reimbursed as of such
date under APC 0067 (and any succeeding
classification group)),
the payment rate for the service described
in subclause (I) shall be reduced to an
amount equal to the payment rate for the
service described in subclause (II).
(ii) Hospital described
A hospital described in this clause is a
hospital that is not—
(I) located in a rural area (as defined in
section 1395ww(d)(2)(D) of this title);
(II) classified as a rural referral center
under section 1395ww(d)(5)(C) of this
title; or
(III) a sole community hospital (as de-
fined in section 1395ww(d)(5)(D)(iii) of
this title).
(iii) Not budget neutral
In making any budget neutrality adjust-
ments under this subsection for 2013 (with
respect to covered OPD services furnished
on or after April 1, 2013, and before Janu-
ary 1, 2014) or a subsequent year, the Sec-
retary shall not take into account the re-
duced expenditures that result from the
application of this subparagraph.
(E) Application of appropriate use criteria
for certain imaging services
For provisions relating to the application
of appropriate use criteria for certain imag-
ing services, see section 1395m(q) of this
title.
(F) Payment incentive for the transition from
traditional X-ray imaging to digital radi-
ography
Notwithstanding the previous provisions of
this subsection:
(i) Limitation on payment for film X-ray
imaging services
In the case of an imaging service that is
an X-ray taken using film and that is fur-
nished during 2017 or a subsequent year,
the payment amount for such service (in-
cluding the X-ray component of a pack-
aged service) that would otherwise be de-
termined under this section (without ap-
plication of this paragraph and before ap-
plication of any other adjustment under
this subsection) for such year shall be re-
duced by 20 percent.
(ii) Phased-in limitation on payment for
computed radiography imaging serv-
ices
In the case of an imaging service that is
an X-ray taken using computed radiog-
raphy technology (as defined in section
1395w–4(b)(9)(C) of this title)—
(I) in the case of such a service fur-
nished during 2018, 2019, 2020, 2021, or
2022, the payment amount for such serv-
ice (including the X-ray component of a
packaged service) that would otherwise
be determined under this section (with-
out application of this paragraph and be-
fore application of any other adjustment
under this subsection) for such year shall
be reduced by 7 percent; and
(II) in the case of such a service fur-
nished during 2023 or a subsequent year,
the payment amount for such service
(including the X-ray component of a
packaged service) that would otherwise
be determined under this section (with-
out application of this paragraph and be-
fore application of any other adjustment
under this subsection) for such year shall
be reduced by 10 percent.
(iii) Application without regard to budget
neutrality
The reductions made under this subpara-
graph—
(I) shall not be considered an adjust-
ment under paragraph (2)(E); and
(II) shall not be implemented in a
budget neutral manner.
(iv) Implementation
In order to implement this subpara-
graph, the Secretary shall adopt appro-
priate mechanisms which may include use
of modifiers.
(G) Temporary additional payments for non-
opioid treatments for pain relief
(i) In general
Notwithstanding any other provision of
this subsection, with respect to a non-
opioid treatment for pain relief (as defined
in clause (iv)) furnished on or after Janu-
ary 1, 2025, and before January 1, 2028, the
Secretary shall not package payment for
such non-opioid treatment for pain relief
into a payment for a covered OPD service
(or group of services), and shall make an
additional payment as specified in clause
(ii) for such non-opioid treatment for pain
relief.
(ii) Amount of payment
Subject to the limitation under clause
(iii), the amount of the payment specified
in this clause is, with respect to a non-
opioid treatment for pain relief that is—
(I) a drug or biological product, the
amount of payment for such drug or bio-
logical
determined
under
section
1395w–3a of this title that exceeds the
portion of the otherwise applicable Medi-
care OPD fee schedule that the Sec-
retary determines is associated with the
drug or biological; or
(II) a medical device, the amount of
the hospital’s charges for the device, ad-
justed to cost, that exceeds the portion
of the otherwise applicable Medicare
OPD fee schedule that the Secretary de-
termines is associated with the device.
(iii) Limitation
The additional payment amount speci-
fied in clause (ii) shall not exceed the esti-
mated average of 18 percent of the OPD fee
schedule amount for the OPD service (or
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
group of services) with which the non-
opioid treatment for pain relief is fur-
nished, as determined by the Secretary.
(iv) Definition of non-opioid treatment for
pain relief
In this subparagraph, the term ‘‘non-
opioid treatment for pain relief’’ means a
drug, biological product, or medical device
that—
(I) in the case of a drug or biological
product, has a label indication approved
by the Food and Drug Administration to
reduce postoperative pain, or produce
postsurgical or regional analgesia, with-
out acting upon the body’s opioid recep-
tors;
(II) in case of a medical device, is used
to deliver a therapy to reduce post-
operative pain, or produce postsurgical
or regional analgesia, and has—
(aa) an application under section 360e
of title 21 that has been approved with
respect to the device, been cleared for
market under section 360(k) of such
title, or is exempt from the require-
ments of section 360(k) of such title
pursuant to subsection (l) or (m) or
section 360 of such title or section
360j(g) of such title; and
(bb) demonstrated the ability to re-
place, reduce, or avoid intraoperative
or postoperative opioid use or the
quantity of opioids prescribed in a
clinical trial or through data published
in a peer-reviewed journal;
(III) does not receive transitional pass-
through payment under paragraph (6);
and
(IV) has payment that is packaged into
a payment for a covered OPD service (or
group of services).
(17) Quality reporting
(A) Reduction in update for failure to report
(i) In general
For purposes of paragraph (3)(C)(iv) for
2009 and each subsequent year, in the case
of a subsection (d) hospital (as defined in
section 1395ww(d)(1)(B) of this title) that
does not submit, to the Secretary in ac-
cordance with this paragraph, data re-
quired to be submitted on measures se-
lected under this paragraph with respect
to such a year, the OPD fee schedule in-
crease factor under paragraph (3)(C)(iv) for
such year shall be reduced by 2.0 percent-
age points.
(ii) Non-cumulative application
A reduction under this subparagraph
shall apply only with respect to the year
involved and the Secretary shall not take
into account such reduction in computing
the OPD fee schedule increase factor for a
subsequent year.
(B) Form and manner of submission
Each subsection (d) hospital shall submit
data on measures selected under this para-
graph to the Secretary in a form and man-
ner, and at a time, specified by the Sec-
retary for purposes of this paragraph.
(C) Development of outpatient measures
(i) In general
The Secretary shall develop measures
that the Secretary determines to be appro-
priate for the measurement of the quality
of care (including medication errors) fur-
nished by hospitals in outpatient settings
and that reflect consensus among affected
parties and, to the extent feasible and
practicable, shall include measures set
forth by one or more national consensus
building entities.
(ii) Construction
Nothing in this paragraph shall be con-
strued as preventing the Secretary from
selecting measures that are the same as
(or a subset of) the measures for which
data are required to be submitted under
section 1395ww(b)(3)(B)(viii) of this title.
(D) Replacement of measures
For purposes of this paragraph, the Sec-
retary may replace any measures or indica-
tors in appropriate cases, such as where all
hospitals are effectively in compliance or
the measures or indicators have been subse-
quently shown not to represent the best clin-
ical practice.
(E) Availability of data
The Secretary shall establish procedures
for making data submitted under this para-
graph available to the public. Such proce-
dures shall ensure that a hospital has the op-
portunity to review the data that are to be
made public with respect to the hospital
prior to such data being made public. The
Secretary shall report quality measures of
process, structure, outcome, patients’ per-
spectives on care, efficiency, and costs of
care that relate to services furnished in out-
patient settings in hospitals on the Internet
website of the Centers for Medicare & Med-
icaid Services.
(18) Authorization of adjustment for cancer
hospitals
(A) Study
The Secretary shall conduct a study to de-
termine if, under the system under this sub-
section, costs incurred by hospitals de-
scribed in section 1395ww(d)(1)(B)(v) of this
title with respect to ambulatory payment
classification groups exceed those costs in-
curred by other hospitals furnishing services
under this subsection (as determined appro-
priate by the Secretary). In conducting the
study under this subparagraph, the Sec-
retary shall take into consideration the cost
of drugs and biologicals incurred by such
hospitals.
(B) Authorization of adjustment
Insofar as the Secretary determines under
subparagraph (A) that costs incurred by hos-
pitals described in section 1395ww(d)(1)(B)(v)
of this title exceed those costs incurred by
other hospitals furnishing services under
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
16 So in original. Probably should be preceded by ‘‘under’’.
this subsection, the Secretary shall, subject
to subparagraph (C), provide for an appro-
priate adjustment under paragraph (2)(E) to
reflect those higher costs effective for serv-
ices furnished on or after January 1, 2011.
(C) Target PCR adjustment
In applying section 419.43(i) of title 42 of
the Code of Federal Regulations to imple-
ment the appropriate adjustment under this
paragraph for services furnished on or after
January 1, 2018, the Secretary shall use a
target PCR that is 1.0 percentage points less
than the target PCR that would otherwise
apply. In addition to the percentage point
reduction under the previous sentence, the
Secretary may consider making an addi-
tional percentage point reduction to such
target PCR that takes into account payment
rates for applicable items and services de-
scribed in paragraph (21)(C) other than for
services furnished by hospitals described in
section 1395ww(d)(1)(B)(v) of this title. In
making any budget neutrality adjustments
under this subsection for 2018 or a subse-
quent year, the Secretary shall not take into
account the reduced expenditures that result
from the application of this subparagraph.
(19) Floor on area wage adjustment factor for
hospital outpatient department services in
frontier States
(A) In general
Subject to subparagraph (B), with respect
to covered OPD services furnished on or
after January 1, 2011, the area wage adjust-
ment factor applicable under the payment
system established under this subsection to
any hospital outpatient department which is
located in a frontier State (as defined in sec-
tion 1395ww(d)(3)(E)(iii)(II) of this title) may
not be less than 1.00. The preceding sentence
shall not be applied in a budget neutral man-
ner.
(B) Limitation
This paragraph shall not apply to any hos-
pital outpatient department located in a
State that receives a non-labor related share
adjustment under section 1395ww(d)(5)(H) of
this title.
(20) Not budget neutral application of reduced
expenditures resulting from quality incen-
tives for computed tomography
The Secretary shall not take into account
the reduced expenditures that result from the
application of section 1395m(p) of this title in
making any budget neutrality adjustments
this 16 subsection.
(21) Services furnished by an off-campus out-
patient department of a provider
(A) Applicable items and services
For purposes of paragraph (1)(B)(v) and
this paragraph, the term ‘‘applicable items
and services’’ means items and services
other than items and services furnished by a
dedicated emergency department (as defined
in section 489.24(b) of title 42 of the Code of
Federal Regulations).
(B) Off-campus outpatient department of a
provider
(i) In general
For purposes of paragraph (1)(B)(v) and
this paragraph, subject to the subsequent
provisions of this subparagraph, the term
‘‘off-campus outpatient department of a
provider’’ means a department of a pro-
vider (as defined in section 413.65(a)(2) of
title 42 of the Code of Federal Regulations,
as in effect as of November 2, 2015) that is
not located—
(I) on the campus (as defined in such
section 413.65(a)(2)) of such provider; or
(II) within the distance (described in
such definition of campus) from a remote
location of a hospital facility (as defined
in such section 413.65(a)(2)).
(ii) Exception
For purposes of paragraph (1)(B)(v) and
this paragraph, the term ‘‘off-campus out-
patient department of a provider’’ shall
not include a department of a provider (as
so defined) that was billing under this sub-
section with respect to covered OPD serv-
ices furnished prior to November 2, 2015.
(iii) Deemed treatment for 2017
For purposes of applying clause (ii) with
respect to applicable items and services
furnished during 2017, a department of a
provider (as so defined) not described in
such clause is deemed to be billing under
this subsection with respect to covered
OPD services furnished prior to November
2, 2015, if the Secretary received from the
provider prior to December 2, 2015, an at-
testation (pursuant to section 413.65(b)(3)
of title 42 of the Code of Federal Regula-
tions) that such department was a depart-
ment of a provider (as so defined).
(iv) Alternative exception beginning with
2018
For purposes of paragraph (1)(B)(v) and
this paragraph with respect to applicable
items and services furnished during 2018 or
a subsequent year, the term ‘‘off-campus
outpatient department of a provider’’ also
shall not include a department of a pro-
vider (as so defined) that is not described
in clause (ii) if—
(I) the Secretary receives from the pro-
vider an attestation (pursuant to such
section 413.65(b)(3)) not later than De-
cember 31, 2016 (or, if later, 60 days after
December 13, 2016), that such department
met the requirements of a department of
a provider specified in section 413.65 of
title 42 of the Code of Federal Regula-
tions;
(II) the provider includes such depart-
ment as part of the provider on its en-
rollment form in accordance with the en-
rollment process under section 1395cc(j)
of this title; and
(III) the department met the mid-build
requirement of clause (v) and the Sec-
retary receives, not later than 60 days
after December 13, 2016, from the chief
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
executive officer or chief operating offi-
cer of the provider a written certifi-
cation that the department met such re-
quirement.
(v) Mid-build requirement described
The mid-build requirement of this clause
is, with respect to a department of a pro-
vider, that before November 2, 2015, the
provider had a binding written agreement
with an outside unrelated party for the ac-
tual construction of such department.
(vi) Exclusion for certain cancer hospitals
For purposes of paragraph (1)(B)(v) and
this paragraph with respect to applicable
items and services furnished during 2017 or
a subsequent year, the term ‘‘off-campus
outpatient department of a provider’’ also
shall not include a department of a pro-
vider (as so defined) that is not described
in clause (ii) if the provider is a hospital
described in section 1395ww(d)(1)(B)(v) of
this title and—
(I) in the case of a department that
met the requirements of section 413.65 of
title 42 of the Code of Federal Regula-
tions after November 1, 2015, and before
December 13, 2016, the Secretary receives
from the provider an attestation that
such department met such requirements
not later than 60 days after such date; or
(II) in the case of a department that
meets such requirements after such date,
the Secretary receives from the provider
an attestation that such department
meets such requirements not later than
60 days after the date such requirements
are first met with respect to such depart-
ment.
(vii) Audit
Not later than December 31, 2018, the
Secretary shall audit the compliance with
requirements of clause (iv) with respect to
each department of a provider to which
such clause applies. Not later than 2 years
after the date the Secretary receives an
attestation under clause (vi) relating to
compliance of a department of a provider
with requirements referred to in such
clause, the Secretary shall audit the com-
pliance with such requirements with re-
spect to the department. If the Secretary
finds as a result of an audit under this
clause that the applicable requirements
were not met with respect to such depart-
ment, the department shall not be ex-
cluded from the term ‘‘off-campus out-
patient department of a provider’’ under
such clause.
(viii) Implementation
For purposes of implementing clauses
(iii) through (vii):
(I) Notwithstanding any other provi-
sion of law, the Secretary may imple-
ment such clauses by program instruc-
tion or otherwise.
(II) Subchapter I of chapter 35 of title
44 shall not apply.
(III) For purposes of carrying out this
subparagraph with respect to clauses
(iii) and (iv) (and clause (vii) insofar as it
relates to clause (iv)), $10,000,000 shall be
available
from
the
Federal
Supple-
mentary Medical Insurance Trust Fund
under section 1395t of this title, to re-
main available until December 31, 2018.
For purposes of carrying out this sub-
paragraph with respect to clause (vi)
(and clause (vii) insofar as it relates to
such clause), $2,000,000 shall be available
from the Federal Supplementary Medical
Insurance Trust Fund under section 1395t
of this title, to remain available until
expended.
(C) Availability of payment under other pay-
ment systems
Payments for applicable items and serv-
ices furnished by an off-campus outpatient
department of a provider that are described
in paragraph (1)(B)(v) shall be made under
the applicable payment system under this
part (other than under this subsection) if the
requirements for such payment are other-
wise met.
(D) Information needed for implementation
Each hospital shall provide to the Sec-
retary such information as the Secretary de-
termines appropriate to implement this
paragraph and paragraph (1)(B)(v) (which
may include reporting of information on a
hospital claim using a code or modifier and
reporting information about off-campus out-
patient departments of a provider on the en-
rollment form described in section 1395cc(j)
of this title).
(E) Limitations
There shall be no administrative or judi-
cial review under section 1395ff of this title,
section 1395oo of this title, or otherwise of
the following:
(i) The determination of the applicable
items and services under subparagraph (A)
and applicable payment systems under
subparagraph (C).
(ii) The determination of whether a de-
partment of a provider meets the term de-
scribed in subparagraph (B).
(iii) Any information that hospitals are
required to report pursuant to subpara-
graph (D).
(iv) The determination of an audit under
subparagraph (B)(vii).
(22) Review and revisions of payments for non-
opioid alternative treatments
(A) In general
With respect to payments made under this
subsection for covered OPD services (or
groups of services), including covered OPD
services assigned to a comprehensive ambu-
latory payment classification, the Sec-
retary—
(i) shall, as soon as practicable, conduct
a review (part of which may include a re-
quest for information) of payments for
opioids and evidence-based non-opioid al-
ternatives for pain management (including
drugs and devices, nerve blocks, surgical
injections, and neuromodulation) with a
Page 3055
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
goal of ensuring that there are not finan-
cial incentives to use opioids instead of
non-opioid alternatives;
(ii) may, as the Secretary determines ap-
propriate, conduct subsequent reviews of
such payments; and
(iii) shall consider the extent to which
revisions under this subsection to such
payments (such as the creation of addi-
tional groups of covered OPD services to
classify separately those procedures that
utilize opioids and non-opioid alternatives
for pain management) would reduce pay-
ment incentives to use opioids instead of
non-opioid alternatives for pain manage-
ment.
(B) Priority
In conducting the review under clause (i)
of subparagraph (A) and considering revi-
sions under clause (iii) of such subparagraph,
the Secretary shall focus on covered OPD
services (or groups of services) assigned to a
comprehensive ambulatory payment classi-
fication, ambulatory payment classifica-
tions that primarily include surgical serv-
ices, and other services determined by the
Secretary which generally involve treat-
ment for pain management.
(C) Revisions
If the Secretary identifies revisions to
payments pursuant to subparagraph (A)(iii),
the Secretary shall, as determined appro-
priate, begin making such revisions for serv-
ices furnished on or after January 1, 2020.
Revisions under the previous sentence shall
be treated as adjustments for purposes of ap-
plication of paragraph (9)(B).
(D) Rules of construction
Nothing in this paragraph shall be con-
strued to preclude the Secretary—
(i) from conducting a demonstration be-
fore making the revisions described in sub-
paragraph (C); or
(ii) prior to implementation of this para-
graph, from changing payments under this
subsection for covered OPD services (or
groups of services) which include opioids
or non-opioid alternatives for pain man-
agement.
(u) Incentive payments for physician scarcity
areas
(1) In general
In the case of physicians’ services furnished
on or after January 1, 2005, and before July 1,
2008—
(A) by a primary care physician in a pri-
mary care scarcity county (identified under
paragraph (4)); or
(B) by a physician who is not a primary
care physician in a specialist care scarcity
county (as so identified),
in addition to the amount of payment that
would otherwise be made for such services
under this part, there also shall be paid an
amount equal to 5 percent of the payment
amount for the service under this part.
(2) Determination of ratios of physicians to
medicare beneficiaries in area
Based upon available data, the Secretary
shall establish for each county or equivalent
area in the United States, the following:
(A) Number of physicians practicing in the
area
The number of physicians who furnish phy-
sicians’ services in the active practice of
medicine or osteopathy in that county or
area, other than physicians whose practice is
exclusively for the Federal Government,
physicians who are retired, or physicians
who only provide administrative services. Of
such number, the number of such physicians
who are—
(i) primary care physicians; or
(ii) physicians who are not primary care
physicians.
(B) Number of medicare beneficiaries resid-
ing in the area
The number of individuals who are resid-
ing in the county and are entitled to benefits
under part A or enrolled under this part, or
both (in this subsection referred to as ‘‘indi-
viduals’’).
(C) Determination of ratios
(i) Primary care ratio
The ratio (in this paragraph referred to
as the ‘‘primary care ratio’’) of the number
of primary care physicians (determined
under subparagraph (A)(i)), to the number
of individuals determined under subpara-
graph (B).
(ii) Specialist care ratio
The ratio (in this paragraph referred to
as the ‘‘specialist care ratio’’) of the num-
ber of other physicians (determined under
subparagraph (A)(ii)), to the number of in-
dividuals determined under subparagraph
(B).
(3) Ranking of counties
The Secretary shall rank each such county
or area based separately on its primary care
ratio and its specialist care ratio.
(4) Identification of counties
(A) In general
The Secretary shall identify—
(i) those counties and areas (in this para-
graph referred to as ‘‘primary care scar-
city counties’’) with the lowest primary
care ratios that represent, if each such
county or area were weighted by the num-
ber of individuals determined under para-
graph (2)(B), an aggregate total of 20 per-
cent of the total of the individuals deter-
mined under such paragraph; and
(ii) those counties and areas (in this sub-
section referred to as ‘‘specialist care scar-
city counties’’) with the lowest specialist
care ratios that represent, if each such
county or area were weighted by the num-
ber of individuals determined under para-
graph (2)(B), an aggregate total of 20 per-
cent of the total of the individuals deter-
mined under such paragraph.
Page 3056
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(B) Periodic revisions
The Secretary shall periodically revise the
counties or areas identified in subparagraph
(A) (but not less often than once every three
years) unless the Secretary determines that
there is no new data available on the number
of physicians practicing in the county or
area or the number of individuals residing in
the county or area, as identified in para-
graph (2).
(C) Identification of counties where service
is furnished
For purposes of paying the additional
amount specified in paragraph (1), if the Sec-
retary uses the 5-digit postal ZIP Code where
the service is furnished, the dominant coun-
ty of the postal ZIP Code (as determined by
the United States Postal Service, or other-
wise) shall be used to determine whether the
postal ZIP Code is in a scarcity county iden-
tified in subparagraph (A) or revised in sub-
paragraph (B).
(D) Special rule
With respect to physicians’ services fur-
nished on or after January 1, 2008, and before
July 1, 2008, for purposes of this subsection,
the Secretary shall use the primary care
scarcity counties and the specialty care
scarcity counties (as identified under the
preceding provisions of this paragraph) that
the Secretary was using under this sub-
section with respect to physicians’ services
furnished on December 31, 2007.
(E) Judicial review
There shall be no administrative or judi-
cial review under section 1395ff, 1395oo of
this title, or otherwise, respecting—
(i) the identification of a county or area;
(ii) the assignment of a specialty of any
physician under this paragraph;
(iii) the assignment of a physician to a
county under paragraph (2); or
(iv) the assignment of a postal ZIP Code
to a county or other area under this sub-
section.
(5) Rural census tracts
To the extent feasible, the Secretary shall
treat a rural census tract of a metropolitan
statistical area (as determined under the most
recent modification of the Goldsmith Modi-
fication, originally published in the Federal
Register on February 27, 1992 (57 Fed. Reg.
6725)), as an equivalent area for purposes of
qualifying as a primary care scarcity county
or specialist care scarcity county under this
subsection.
(6) Physician defined
For purposes of this paragraph, the term
‘‘physician’’ means a physician described in
section 1395x(r)(1) of this title and the term
‘‘primary care physician’’ means a physician
who is identified in the available data as a
general practitioner, family practice practi-
tioner, general internist, or obstetrician or
gynecologist.
(7) Publication of list of counties; posting on
website
With respect to a year for which a county or
area is identified or revised under paragraph
(4), the Secretary shall identify such counties
or areas as part of the proposed and final rule
to implement the physician fee schedule under
section 1395w–4 of this title for the applicable
year. The Secretary shall post the list of coun-
ties identified or revised under paragraph (4)
on the Internet website of the Centers for
Medicare & Medicaid Services.
(v) Increase of FQHC payment limits
In the case of services furnished by Federally
qualified health centers (as defined in section
1395x(aa)(4) of this title), the Secretary shall es-
tablish payment limits with respect to such
services under this part for services furnished—
(1) in 2010, at the limits otherwise estab-
lished under this part for such year increased
by $5; and
(2) in a subsequent year, at the limits estab-
lished under this subsection for the previous
year increased by the percentage increase in
the MEI (as defined in section 1395u(i)(3) of
this title) for such subsequent year.
(w) Methods of payment
The Secretary may develop alternative meth-
ods of payment for items and services provided
under clinical trials and comparative effective-
ness studies sponsored or supported by an agen-
cy of the Department of Health and Human
Services, as determined by the Secretary, to
those that would otherwise apply under this sec-
tion, to the extent such alternative methods are
necessary to preserve the scientific validity of
such trials or studies, such as in the case where
masking the identity of interventions from pa-
tients and investigators is necessary to comply
with the particular trial or study design.
(x) Incentive payments for primary care services
(1) In general
In the case of primary care services fur-
nished on or after January 1, 2011, and before
January 1, 2016, by a primary care practi-
tioner, in addition to the amount of payment
that would otherwise be made for such serv-
ices under this part, there also shall be paid
(on a monthly or quarterly basis) an amount
equal to 10 percent of the payment amount for
the service under this part.
(2) Definitions
In this subsection:
(A) Primary care practitioner
The term ‘‘primary care practitioner’’
means an individual—
(i) who—
(I) is a physician (as described in sec-
tion 1395x(r)(1) of this title) who has a
primary specialty designation of family
medicine, internal medicine, geriatric
medicine, or pediatric medicine; or
(II) is a nurse practitioner, clinical
nurse specialist, or physician assistant
(as those terms are defined in section
1395x(aa)(5) of this title); and
(ii) for whom primary care services ac-
counted for at least 60 percent of the al-
lowed charges under this part for such
physician or practitioner in a prior period
as determined appropriate by the Sec-
retary.
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
17 So in original. Probably should be ‘‘paragraphs’’.
(B) Primary care services
The term ‘‘primary care services’’ means
services identified, as of January 1, 2009, by
the following HCPCS codes (and as subse-
quently modified by the Secretary):
(i) 99201 through 99215.
(ii) 99304 through 99340.
(iii) 99341 through 99350.
(3) Coordination with other payments
The amount of the additional payment for a
service under this subsection and subsection
(m) shall be determined without regard to any
additional payment for the service under sub-
section (m) and this subsection, respectively.
The amount of the additional payment for a
service under this subsection and subsection
(z) shall be determined without regard to any
additional payment for the service under sub-
section (z) and this subsection, respectively.
(4) Limitation on review
There shall be no administrative or judicial
review under section 1395ff of this title, 1395oo
of this title, or otherwise, respecting the iden-
tification of primary care practitioners under
this subsection.
(y) Incentive payments for major surgical proce-
dures furnished in health professional short-
age areas
(1) In general
In the case of major surgical procedures fur-
nished on or after January 1, 2011, and before
January 1, 2016, by a general surgeon in an
area
that
is
designated
(under
section
254e(a)(1)(A) of this title) as a health profes-
sional shortage area as identified by the Sec-
retary prior to the beginning of the year in-
volved, in addition to the amount of payment
that would otherwise be made for such serv-
ices under this part, there also shall be paid
(on a monthly or quarterly basis) an amount
equal to 10 percent of the payment amount for
the service under this part.
(2) Definitions
In this subsection:
(A) General surgeon
In this subsection, the term ‘‘general sur-
geon’’ means a physician (as described in
section 1395x(r)(1) of this title) who has des-
ignated CMS specialty code 02–General Sur-
gery as their primary specialty code in the
physician’s
enrollment
under
section
1395cc(j) of this title.
(B) Major surgical procedures
The term ‘‘major surgical procedures’’
means physicians’ services which are sur-
gical procedures for which a 10-day or 90-day
global period is used for payment under the
fee schedule under section 1395w–4(b) of this
title.
(3) Coordination with other payments
The amount of the additional payment for a
service under this subsection and subsection
(m) shall be determined without regard to any
additional payment for the service under sub-
section (m) and this subsection, respectively.
The amount of the additional payment for a
service under this subsection and subsection
(z) shall be determined without regard to any
additional payment for the service under sub-
section (z) and this subsection, respectively.
(4) Application
The provisions of paragraph 17 (2) and (4) of
subsection (m) shall apply to the determina-
tion of additional payments under this sub-
section in the same manner as such provisions
apply to the determination of additional pay-
ments under subsection (m).
(z) Incentive payments for participation in eligi-
ble alternative payment models
(1) Payment incentive
(A) In general
In the case of covered professional services
furnished by an eligible professional during
a year that is in the period beginning with
2019 and ending with 2026 and for which the
professional is a qualifying APM participant
with respect to such year, in addition to the
amount of payment that would otherwise be
made for such covered professional services
under this part for such year, there also
shall be paid to such professional an amount
equal to 5 percent (or, with respect to 2025,
3.5 percent, or, with respect to 2026, 1.88 per-
cent) of the estimated aggregate payment
amounts for such covered professional serv-
ices under this part for the preceding year.
For purposes of the previous sentence, the
payment amount for the preceding year may
be an estimation for the full preceding year
based on a period of such preceding year that
is less than the full year. The Secretary
shall establish policies to implement this
subparagraph in cases in which payment for
covered professional services furnished by a
qualifying APM participant in an alter-
native payment model—
(i) is made to an eligible alternative pay-
ment entity rather than directly to the
qualifying APM participant; or
(ii) is made on a basis other than a fee-
for-service basis (such as payment on a
capitated basis).
(B) Form of payment
Payments under this subsection shall be
made in a lump sum, on an annual basis, as
soon as practicable.
(C) Treatment of payment incentive
Payments under this subsection shall not
be taken into account for purposes of deter-
mining actual expenditures under an alter-
native payment model and for purposes of
determining or rebasing any benchmarks
used under the alternative payment model.
(D) Coordination
The amount of the additional payment
under this subsection or subsection (m) shall
be determined without regard to any addi-
tional payment under subsection (m) and
this subsection, respectively. The amount of
the additional payment under this sub-
section or subsection (x) shall be determined
Page 3058
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
18 So in original. Probably should be ‘‘exceed’’.
without regard to any additional payment
under subsection (x) and this subsection, re-
spectively. The amount of the additional
payment under this subsection or subsection
(y) shall be determined without regard to
any additional payment under subsection (y)
and this subsection, respectively.
(2) Qualifying APM participant
For purposes of this subsection, the term
‘‘qualifying APM participant’’ means the fol-
lowing:
(A) 2019 and 2020
With respect to 2019 and 2020, an eligible
professional for whom the Secretary deter-
mines that at least 25 percent of payments
under this part for covered professional serv-
ices furnished by such professional during
the most recent period for which data are
available (which may be less than a year)
were attributable to such services furnished
under this part through an eligible alter-
native payment entity.
(B) 2021 through 2026
With respect to each of 2021 through 2026,
an eligible professional described in either of
the following clauses:
(i) Medicare payment threshold option
An eligible professional for whom the
Secretary determines that at least 50 per-
cent of payments under this part for cov-
ered professional services furnished by
such professional during the most recent
period for which data are available (which
may be less than a year) were attributable
to such services furnished under this part
through an eligible alternative payment
entity.
(ii) Combination all-payer and medicare
payment threshold option
An eligible professional—
(I) for whom the Secretary determines,
with respect to items and services fur-
nished by such professional during the
most recent period for which data are
available (which may be less than a
year), that at least 50 percent of the sum
of—
(aa) payments described in clause (i);
and
(bb) all other payments, regardless of
payer (other than payments made by
the Secretary of Defense or the Sec-
retary of Veterans Affairs and other
than payments made under subchapter
XIX in a State in which no medical
home or alternative payment model is
available under the State program
under that subchapter),
meet the requirement described in clause
(iii)(I) with respect to payments de-
scribed in item (aa) and meet the re-
quirement described in clause (iii)(II)
with respect to payments described in
item (bb);
(II) for whom the Secretary determines
at least 25 percent of payments under
this part for covered professional serv-
ices furnished by such professional dur-
ing the most recent period for which
data are available (which may be less
than a year) were attributable to such
services
furnished
under
this
part
through an eligible alternative payment
entity; and
(III) who provides to the Secretary
such information as is necessary for the
Secretary to make a determination
under subclause (I), with respect to such
professional.
(iii) Requirement
For purposes of clause (ii)(I)—
(I) the requirement described in this
subclause, with respect to payments de-
scribed in item (aa) of such clause, is
that such payments are made to an eligi-
ble alternative payment entity; and
(II) the requirement described in this
subclause, with respect to payments de-
scribed in item (bb) of such clause, is
that such payments are made under ar-
rangements in which—
(aa) quality measures comparable to
measures under the performance cat-
egory
described
in
section
1395w–4(q)(2)(B)(i) of this title apply;
(bb) certified EHR technology is
used; and
(cc) the eligible professional partici-
pates in an entity that—
(AA) bears more than nominal fi-
nancial risk if actual aggregate ex-
penditures exceeds 18 expected aggre-
gate expenditures; or
(BB) with respect to beneficiaries
under subchapter XIX, is a medical
home that meets criteria comparable
to medical homes expanded under
section 1315a(c) of this title.
(C) Beginning in 2027
With respect to 2027 and each subsequent
year, an eligible professional described in ei-
ther of the following clauses:
(i) Medicare payment threshold option
An eligible professional for whom the
Secretary determines that at least 75 per-
cent of payments under this part for cov-
ered professional services furnished by
such professional during the most recent
period for which data are available (which
may be less than a year) were attributable
to such services furnished under this part
through an eligible alternative payment
entity.
(ii) Combination all-payer and medicare
payment threshold option
An eligible professional—
(I) for whom the Secretary determines,
with respect to items and services fur-
nished by such professional during the
most recent period for which data are
available (which may be less than a
year), that at least 75 percent of the sum
of—
Page 3059
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
19 So in original. Probably should be preceded by ‘‘section’’.
(aa) payments described in clause (i);
and
(bb) all other payments, regardless of
payer (other than payments made by
the Secretary of Defense or the Sec-
retary of Veterans Affairs and other
than payments made under subchapter
XIX in a State in which no medical
home or alternative payment model is
available under the State program
under that subchapter),
meet the requirement described in clause
(iii)(I) with respect to payments de-
scribed in item (aa) and meet the re-
quirement described in clause (iii)(II)
with respect to payments described in
item (bb);
(II) for whom the Secretary determines
at least 25 percent of payments under
this part for covered professional serv-
ices furnished by such professional dur-
ing the most recent period for which
data are available (which may be less
than a year) were attributable to such
services
furnished
under
this
part
through an eligible alternative payment
entity; and
(III) who provides to the Secretary
such information as is necessary for the
Secretary to make a determination
under subclause (I), with respect to such
professional.
(iii) Requirement
For purposes of clause (ii)(I)—
(I) the requirement described in this
subclause, with respect to payments de-
scribed in item (aa) of such clause, is
that such payments are made to an eligi-
ble alternative payment entity; and
(II) the requirement described in this
subclause, with respect to payments de-
scribed in item (bb) of such clause, is
that such payments are made under ar-
rangements in which—
(aa) quality measures comparable to
measures under the performance cat-
egory
described
in
section
1395w–4(q)(2)(B)(i) of this title apply;
(bb) certified EHR technology is
used; and
(cc) the eligible professional partici-
pates in an entity that—
(AA) bears more than nominal fi-
nancial risk if actual aggregate ex-
penditures exceeds 18 expected aggre-
gate expenditures; or
(BB) with respect to beneficiaries
under subchapter XIX, is a medical
home that meets criteria comparable
to medical homes expanded under
section 1315a(c) of this title.
(D) Use of patient approach
The Secretary may base the determination
of whether an eligible professional is a quali-
fying APM participant under this subsection
and the determination of whether an eligible
professional is a partial qualifying APM par-
ticipant under section 1395w–4(q)(1)(C)(iii) of
this title by using counts of patients in lieu
of using payments and using the same or
similar percentage criteria (as specified in
this subsection and such section, respec-
tively), as the Secretary determines appro-
priate. With respect to 2023, 2024, 2025, and
2026, the Secretary shall use the same per-
centage criteria for counts of patients that
are used in 2022.
(3) Additional definitions
In this subsection:
(A) Covered professional services
The term ‘‘covered professional services’’
has the meaning given that term in section
1395w–4(k)(3)(A) of this title.
(B) Eligible professional
The term ‘‘eligible professional’’ has the
meaning
given
that
term
in
section
1395w–4(k)(3)(B) of this title and includes a
group that includes such professionals.
(C) Alternative payment model (APM)
The term ‘‘alternative payment model’’
means, other than for purposes of subpara-
graphs (B)(ii)(I)(bb) and (C)(ii)(I)(bb) of para-
graph (2), any of the following:
(i) A model under section 1315a of this
title (other than a health care innovation
award).
(ii) The shared savings program under
section 1395jjj of this title.
(iii) A demonstration under section
1395cc–3 of this title.
(iv) A demonstration required by Federal
law.
(D) Eligible alternative payment entity
The term ‘‘eligible alternative payment
entity’’ means, with respect to a year, an en-
tity that—
(i) participates in an alternative pay-
ment model that—
(I) requires participants in such model
to use certified EHR technology (as de-
fined in subsection (o)(4)); and
(II) provides for payment for covered
professional services based on quality
measures comparable to measures under
the performance category described in
section 1395w–4(q)(2)(B)(i) of this title;
and
(ii)(I) bears financial risk for monetary
losses under such alternative payment
model that are in excess of a nominal
amount; or
(II) is a medical home expanded under
section 1315a(c) of this title.
(4) Limitation
There shall be no administrative or judicial
review under section 1395ff of this title,
1395oo 19 of this title, or otherwise, of the fol-
lowing:
(A) The determination that an eligible pro-
fessional is a qualifying APM participant
under paragraph (2) and the determination
that an entity is an eligible alternative pay-
ment entity under paragraph (3)(D).
Page 3060
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(B) The determination of the amount of
the 5 percent (or, with respect to 2025, 3.5
percent, or, with respect to 2026, 1.88 per-
cent) payment incentive under paragraph
(1)(A), including any estimation as part of
such determination.
(aa) Medical review of spinal subluxation serv-
ices
(1) In general
The Secretary shall implement a process for
the medical review (as described in paragraph
(2)) of treatment by a chiropractor described
in section 1395x(r)(5) of this title by means of
manual manipulation of the spine to correct a
subluxation (as described in such section) of
an individual who is enrolled under this part
and apply such process to such services fur-
nished on or after January 1, 2017, focusing on
services such as—
(A) services furnished by a such a 1 chiro-
practor whose pattern of billing is aberrant
compared to peers; and
(B) services furnished by such a chiro-
practor who, in a prior period, has a services
denial percentage in the 85th percentile or
greater, taking into consideration the ex-
tent that service denials are overturned on
appeal.
(2) Medical review
(A) Prior authorization medical review
(i) In general
Subject to clause (ii), the Secretary shall
use prior authorization medical review for
services described in paragraph (1) that are
furnished to an individual by a chiro-
practor described in section 1395x(r)(5) of
this title that are part of an episode of
treatment that includes more than 12 serv-
ices. For purposes of the preceding sen-
tence, an episode of treatment shall be de-
termined by the underlying cause that jus-
tifies the need for services, such as a diag-
nosis code.
(ii) Ending application of prior authoriza-
tion medical review
The Secretary shall end the application
of prior authorization medical review
under clause (i) to services described in
paragraph (1) by such a chiropractor if the
Secretary
determines
that
the
chiro-
practor has a low denial rate under such
prior authorization medical review. The
Secretary may subsequently reapply prior
authorization medical review to such chi-
ropractor if the Secretary determines it to
be appropriate and the chiropractor has, in
the time period subsequent to the deter-
mination by the Secretary of a low denial
rate with respect to the chiropractor, fur-
nished such services described in para-
graph (1).
(iii) Early request for prior authorization
review permitted
Nothing in this subsection shall be con-
strued to prevent such a chiropractor from
requesting prior authorization for services
described in paragraph (1) that are to be
furnished to an individual before the chiro-
practor furnishes the twelfth such service
to such individual for an episode of treat-
ment.
(B) Type of review
The Secretary may use pre-payment re-
view or post-payment review of services de-
scribed in section 1395x(r)(5) of this title that
are not subject to prior authorization med-
ical review under subparagraph (A).
(C) Relationship to law enforcement activi-
ties
The Secretary may determine that med-
ical review under this subsection does not
apply in the case where potential fraud may
be involved.
(3) No payment without prior authorization
With respect to a service described in para-
graph (1) for which prior authorization med-
ical review under this subsection applies, the
following shall apply:
(A) Prior authorization determination
The Secretary shall make a determina-
tion, prior to the service being furnished, of
whether the service would or would not meet
the
applicable
requirements
of
section
1395y(a)(1)(A) of this title.
(B) Denial of payment
Subject to paragraph (5), no payment may
be made under this part for the service un-
less the Secretary determines pursuant to
subparagraph (A) that the service would
meet the applicable requirements of such
section 1395y(a)(1)(A) of this title.
(4) Submission of information
A
chiropractor
described
in
section
1395x(r)(5) of this title may submit the infor-
mation necessary for medical review by fax,
by mail, or by electronic means. The Sec-
retary shall make available the electronic
means described in the preceding sentence as
soon as practicable.
(5) Timeliness
If the Secretary does not make a prior au-
thorization determination under paragraph
(3)(A) within 14 business days of the date of
the receipt of medical documentation needed
to make such determination, paragraph (3)(B)
shall not apply.
(6) Application of limitation on beneficiary li-
ability
Where payment may not be made as a result
of the application of paragraph (2)(B), section
1395pp of this title shall apply in the same
manner as such section applies to a denial
that is made by reason of section 1395y(a)(1) of
this title.
(7) Review by contractors
The medical review described in paragraph
(2) may be conducted by medicare administra-
tive
contractors
pursuant
to
section
1395kk–1(a)(4)(G) of this title or by any other
contractor determined appropriate by the Sec-
retary that is not a recovery audit contractor.
(8) Multiple services
The Secretary shall, where practicable,
apply the medical review under this sub-
Page 3061
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
section in a manner so as to allow an indi-
vidual described in paragraph (1) to obtain, at
a single time rather than on a service-by-serv-
ice basis, an authorization in accordance with
paragraph (3)(A) for multiple services.
(9) Construction
With respect to a service described in para-
graph (1) that has been affirmed by medical re-
view under this subsection, nothing in this
subsection shall be construed to preclude the
subsequent denial of a claim for such service
that does not meet other applicable require-
ments under this chapter.
(10) Implementation
(A) Authority
The Secretary may implement the provi-
sions of this subsection by interim final rule
with comment period.
(B) Administration
Chapter 35 of title 44 shall not apply to
medical review under this subsection.
(bb) Additional payments for certain rural
health clinics with physicians or practi-
tioners receiving data 2000 waivers
(1) In general
In the case of a rural health clinic with re-
spect to which, beginning on or after January
1, 2019, rural health clinic services (as defined
in section 1395x(aa)(1) of this title) are fur-
nished for the treatment of opioid use disorder
by a physician or practitioner who meets the
requirements described in paragraph (3), the
Secretary shall, subject to availability of
funds under paragraph (4), make a payment (at
such time and in such manner as specified by
the Secretary) to such rural health clinic after
receiving and approving an application de-
scribed in paragraph (2). Such payment shall
be in an amount determined by the Secretary,
based on an estimate of the average costs of
training for purposes of receiving a waiver de-
scribed in paragraph (3)(B). Such payment
may be made only one time with respect to
each such physician or practitioner.
(2) Application
In order to receive a payment described in
paragraph (1), a rural health clinic shall sub-
mit to the Secretary an application for such a
payment at such time, in such manner, and
containing such information as specified by
the Secretary. A rural health clinic may apply
for such a payment for each physician or prac-
titioner described in paragraph (1) furnishing
services described in such paragraph at such
clinic.
(3) Requirements
For purposes of paragraph (1), the require-
ments described in this paragraph, with re-
spect to a physician or practitioner, are the
following:
(A) The physician or practitioner is em-
ployed by or working under contract with a
rural health clinic described in paragraph (1)
that submits an application under paragraph
(2).
(B) The physician or practitioner first be-
gins prescribing narcotic drugs in schedule
III, IV, or V of section 812 of title 21 for the
purpose of maintenance or detoxification
treatment on or after January 1, 2021.
(4) Funding
For purposes of making payments under this
subsection, there are appropriated, out of
amounts in the Treasury not otherwise appro-
priated, $2,000,000, which shall remain avail-
able until expended.
(cc) Specified COVID–19 testing-related services
For purposes of subsection (a)(1)(DD):
(1) Description
(A) In general
A specified COVID–19 testing-related serv-
ice described in this paragraph is a medical
visit that—
(i) is in any of the categories of HCPCS
evaluation and management service codes
described in subparagraph (B);
(ii) is furnished during any portion of the
emergency period (as defined in section
1320b–5(g)(1)(B) of this title) (beginning on
or after March 18, 2020);
(iii) results in an order for or adminis-
tration of a clinical diagnostic laboratory
test
described
in
section
1395w–22(a)(1)(B)(iv)(IV) of this title; and
(iv) relates to the furnishing or adminis-
tration of such test or to the evaluation of
such individual for purposes of deter-
mining the need of such individual for
such test.
(B) Categories of HCPCS codes
For purposes of subparagraph (A), the cat-
egories of HCPCS evaluation and manage-
ment services codes are the following:
(i) Office and other outpatient services.
(ii) Hospital observation services.
(iii) Emergency department services.
(iv) Nursing facility services.
(v) Domiciliary, rest home, or custodial
care services.
(vi) Home services.
(vii) Online digital evaluation and man-
agement services.
(2) Specified outpatient payment provision
A specified outpatient payment provision de-
scribed in this paragraph is any of the fol-
lowing:
(A) The hospital outpatient prospective
payment system under subsection (t).
(B) The physician fee schedule under sec-
tion 1395w–4 of this title.
(C) The prospective payment system devel-
oped under section 1395m(o) of this title.
(D) Section 1395m(g) of this title, with re-
spect to an outpatient critical access hos-
pital service.
(E) The payment basis determined in regu-
lations pursuant to subsection (a)(3) for
rural health clinic services.
(dd)
Special
coinsurance
rule
for
certain
colorectal cancer screening tests
(1) In general
In the case of a colorectal cancer screening
test to which paragraph (1)(Y) of subsection
Page 3062
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
(a) would not apply but for the third sentence
of such subsection that is furnished during a
year beginning on or after January 1, 2022, and
before January 1, 2030, the amount paid shall
be equal to the specified percent (as defined in
paragraph (2)) for such year of the lesser of the
actual charge for the service or the amount
determined under the fee schedule that applies
to such test under this part (or, in the case
such test is a covered OPD service (as defined
in subsection (t)(1)(B)), the amount deter-
mined under subsection (t)).
(2) Specified percent defined
For purposes of paragraph (1), the term
‘‘specified percent’’ means—
(A) for 2022, 80 percent;
(B) for 2023 through 2026, 85 percent; and
(C) for 2027 through 2029, 90 percent.
(Aug. 14, 1935, ch. 531, title XVIII, § 1833, as added
Pub. L. 89–97, title I, § 102(a), July 30, 1965, 79
Stat. 302; amended Pub. L. 90–248, title I,
§§ 129(c)(7), (8), 131(a), (b), 132(b), 135(c), Jan. 2,
1968, 81 Stat. 848–850, 853; Pub. L. 92–603, title II,
§§ 204(a),
211(c)(4),
226(c)(2),
233(b),
245(d),
251(a)(2), (3), 279, 299K(a), Oct. 30, 1972, 86 Stat.
1377, 1384, 1404, 1411, 1424, 1445, 1454, 1464; Pub. L.
95–142, § 16(a), Oct. 25, 1977, 91 Stat. 1200; Pub. L.
95–210, § 1(b), Dec. 13, 1977, 91 Stat. 1485; Pub. L.
95–292, § 4(b), (c), June 13, 1978, 92 Stat. 315; Pub.
L. 96–473, § 6(j), Oct. 19, 1980, 94 Stat. 2266; Pub. L.
96–499, title IX, §§ 918(a)(4), 930(h), 932(a)(1),
934(b), (d)(1), (3), 935(a), 942, 943(a), Dec. 5, 1980, 94
Stat. 2626, 2631, 2634, 2637, 2639, 2641; Pub. L.
96–611, § 1(b)(1), (2), Dec. 28, 1980, 94 Stat. 3566;
Pub. L. 97–35, title XXI, §§ 2106(a), 2133(a), 2134(a),
Aug. 13, 1981, 95 Stat. 792, 797; Pub. L. 97–248,
title I, §§ 101(c)(2), 112(a), (b), 117(a)(2), 148(d),
Sept. 3, 1982, 96 Stat. 336, 340, 355, 394; Pub. L.
98–369, div. B, title III, §§ 2303(a)–(d), 2305(a)–(d),
2308(b)(2)(B), 2321(b), (d)(4)(A), 2323(b)(1), (2), (4),
2354(b)(5), (7), July 18, 1984, 98 Stat. 1064, 1069,
1070, 1074, 1084–1086, 1100; Pub. L. 98–617, § 3(b)(2),
(3), Nov. 8, 1984, 98 Stat. 3295; Pub. L. 99–272, title
IX, §§ 9303(a)(1), (b)(1)–(3), 9401(b)–(2)(E), Apr. 7,
1986, 100 Stat. 188, 189, 198, 199; Pub. L. 99–509,
title IX, §§ 9320(e)(1), (2), 9337(b), 9339(a)(1), (b)(1),
(2), (c)(1), 9343(a), (b), (e)(2), Oct. 21, 1986, 100
Stat. 2014, 2033, 2036, 2039–2041; Pub. L. 100–203,
title IV, §§ 4042(b)(2)(B), 4043(a), 4045(c)(2)(A),
4049(a)(1), 4055(a), formerly 4054(a), 4062(d)(3),
4063(b), (e)(1), 4064(a), (b)(1), (2), (c)(1), formerly
(c), 4066(a), (b), 4067(a), 4068(a), 4070(a), (b)(4),
4072(b), 4073(b), formerly (b)(2), (3), 4077(b)(2), (3),
formerly (b)(3), (4), 4084(a), (c)(2), 4085(b)(1),
(i)(1)–(3), (21)(D)(i), (22)(B), (23), Dec. 22, 1987, 101
Stat. 1330–85, 1330–88, 1330–90, 1330–108 to 1330–115,
1330–117, 1330–118, 1330–120, 1330–121, 1330–129 to
1330–133, as amended Pub. L. 100–360, title IV,
§ 411(f)(2)(D), (8)(B)(i), (12)(A), (14), (g)(2)(E),
(3)(A)–(C), (E), (F), (h)(3)(B), (4)(B), (C), (7)(C),
(D), (F), (i)(3), (4)(C)(i), (ii), (iv), (vi), July 1, 1988,
102 Stat. 777, 779, 781, 783, 784, 786–789; Pub. L.
100–360, title I, § 104(d)(7), title II, §§ 201(a),
202(b)(1)–(3),
203(c)(1)(A)–(E),
204(d)(1),
205(c),
212(c)(2), title IV, § 411(f)(8)(C), (g)(1)(E), (2)(D),
(3)(D), (4)(C), (5), (h)(1)(A), (i)(4)(B), July 1, 1988,
102 Stat. 699, 704, 722, 729, 730, 741, 779, 782–785,
789, as amended Pub. L. 100–485, title VI,
§ 608(d)(3)(G), Oct. 13, 1988, 102 Stat. 2414; Pub. L.
100–485, title VI, § 608(d)(4), (22)(B), (D), (23)(A),
Oct. 13, 1988, 102 Stat. 2414, 2420, 2421; Pub. L.
100–647, title VIII, §§ 8421(a), 8422(a), Nov. 10, 1988,
102 Stat. 3802; Pub. L. 101–234, title II, §§ 201(a),
202(a), Dec. 13, 1989, 103 Stat. 1981; Pub. L.
101–239, title VI, §§ 6003(e)(2)(A), (g)(3)(D)(vii),
6102(c)(1), (e)(1), (5), (6)(A), (7), (f)(2), 6111(a),
(b)(1), 6113(b)(3), (d), 6116(b)(1), 6131(a)(1), (b),
6133(a), 6204(b), Dec. 19, 1989, 103 Stat. 2143, 2153,
2184, 2187–2189, 2213, 2214, 2217, 2219, 2221, 2222,
2241; Pub. L. 101–508, title IV, §§ 4008(m)(2)(C),
4104(b)(1),
4118(f)(2)(D),
4151(c)(1),
(2),
4153(a)(2)(B), (C), 4154(a), (b)(1), (c)(1), (e)(1),
4155(b)(2),
(3),
4160,
4161(a)(3)(B),
4163(d)(1),
4206(b)(2), 4302, Nov. 5, 1990, 104 Stat. 1388–53,
1388–59, 1388–70, 1388–73, 1388–83 to 1388–87, 1388–91,
1388–93, 1388–100, 1388–116, 1388–125; Pub. L.
101–597, title IV, § 401(c)(2), Nov. 16, 1990, 104 Stat.
3035; Pub. L. 103–66, title XIII, §§ 13516(b),
13532(a), 13544(b)(2), 13551, 13555(a), Aug. 10, 1993,
107 Stat. 584, 586, 590, 592; Pub. L. 103–432, title I,
§§ 123(b)(2)(A), (e), 141(a), (c)(1), 147(a), (d), (e)(2),
(3), (f)(6)(C), (D), 156(a)(2)(B), 160(d)(1), Oct. 31,
1994, 108 Stat. 4411, 4412, 4424, 4425, 4429, 4430, 4432,
4440, 4443; Pub. L. 105–33, title IV, §§ 4002(j)(1)(A),
4101(b), 4102(b), 4103(b), 4104(c)(1), (2), 4201(c)(1),
4205(a)(1)(A), (2), 4315(b), 4432(b)(5)(C), 4511(b),
4512(b)(1), 4521(a), (b), 4523(a), (d)(1)(A)(i), (B)–(3),
4531(b)(1), 4541(a)(1), (c), (d)(1), 4553(a), (b), 4555,
4556(b), 4603(c)(2)(A), Aug. 5, 1997, 111 Stat. 330,
360–362, 365, 373, 376, 390, 421, 442–445, 449, 450, 454,
456, 460, 462, 463, 470; Pub. L. 106–113, div. B,
§ 1000(a)(6) [title II, §§ 201(a)–(e)(1), (f)–(h)(1), (i),
(j), 202(a), 204(a),(b), 211(a)(3)(B), 221(a)(1), 224(a),
title III, § 321(g)(2), (k)(2), title IV, §§ 401(b)(1),
403(e)(1)], Nov. 29, 1999, 113 Stat. 1536, 1501A–336
to 1501A–342, 1501A–345, 1501A–348, 1501A–351,
1501A–353, 1501A–366, 1501A–369, 1501A–371; Pub. L.
106–554, § 1(a)(6) [title I, §§ 105(c), 111(a)(1), title II,
§§ 201(b)(1), 205(b), 223(c), 224(a), title IV, §§ 401(a),
(b)(1), 402(a), (b), 403(a), 405(a), 406(a), 421(a),
430(a), title V, § 531(a)], Dec. 21, 2000, 114 Stat.
2763, 2763A–472, 2763A–481, 2763A–483, 2763A–489,
2763A–490, 2763A–502, 2763A–503, 2763A–505 to
2763A–508, 2763A–516, 2763A–524, 2763A–547; Pub. L.
108–173, title II, § 237(a), title III, §§ 302(b)(2),
303(i)(3)(A), title IV, §§ 411(a)(1), (b), 413(a), (b)(1),
title VI, §§ 614(a), (b), 621(a)(1)–(5), (b)(1), (2), 622,
624(a)(1), 626(a)–(c), 627(a), 628, 629, 642(b), title
VII, § 736(b)(1), (2), title IX, § 942(b), Dec. 8, 2003,
117 Stat. 2212, 2229, 2254, 2274, 2275, 2277, 2306–2311,
2317–2322, 2355, 2421; Pub. L. 109–171, title V,
§§ 5103, 5105, 5107(a)(1), 5112(e), 5113(a), Feb. 8,
2006, 120 Stat. 40–42, 44; Pub. L. 109–432, div. B,
title I, §§ 107(a), (b)(1), 109(a)(1), (b), title II, § 201,
Dec. 20, 2006, 120 Stat. 2983–2986; Pub. L. 110–173,
title I, §§ 102, 105, 106, 113, Dec. 29, 2007, 121 Stat.
2495, 2496, 2501; Pub. L. 110–275, title I, §§ 101(a)(2),
(b)(2), 102, 141, 142, 143(b)(2), (3), 145(a)(2), (b), 147,
151(a), 184, July 15, 2008, 122 Stat. 2497, 2498, 2542,
2543, 2547, 2548, 2550, 2587; Pub. L. 111–144, § 6, Mar.
2, 2010, 124 Stat. 46; Pub. L. 111–148, title III,
§§ 3103, 3114, 3121, 3138, 3401(i), (k), (l), title IV,
§§ 4103(c)(1),
(3),
(4),
4104(b),
(c),
title
V,
§ 5501(a)(1), (b)(1), title X, §§ 10221(a), (b)(4),
10319(g), 10324(b), 10406, 10501(i)(3)(B), (C), Mar. 23,
2010, 124 Stat. 417, 423, 439, 485–487, 555–558, 652,
653, 935, 936, 949, 960, 975, 998, 999; Pub. L. 111–152,
title I, § 1105(e), Mar. 30, 2010, 124 Stat. 1049; Pub.
L. 111–309, title I, §§ 104, 108, Dec. 15, 2010, 124
Stat. 3287, 3288; Pub. L. 112–78, title III, §§ 304,
308, Dec. 23, 2011, 125 Stat. 1284, 1285; Pub. L.
Page 3063
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
112–96, title III, §§ 3002(a), 3005(a), (b), 3202, Feb.
22, 2012, 126 Stat. 186–188, 193; Pub. L. 112–240,
title VI, §§ 603(a)–(c), 634, Jan. 2, 2013, 126 Stat.
2347, 2355; Pub. L. 113–67, div. B, title I, § 1103,
Dec. 26, 2013, 127 Stat. 1196; Pub. L. 113–93, title
I, § 103, title II, §§ 216(b)(1), 218(a)(2)(A), (b)(2),
Apr. 1, 2014, 128 Stat. 1041, 1059, 1064, 1069; Pub. L.
114–10, title I, § 101(e)(2), (3), title II, § 202(a),
(b)(1), title V, § 514(a), Apr. 16, 2015, 129 Stat. 117,
122, 143, 171; Pub. L. 114–74, title VI, § 603, Nov. 2,
2015, 129 Stat. 597; Pub. L. 114–113, div. O, title V,
§§ 502(b), 504(b)(1), Dec. 18, 2015, 129 Stat. 3019,
3021; Pub. L. 114–255, div. A, title V, § 5012(c)(1),
div. C, title XVI, §§ 16001(a), 16002(a), (b), Dec. 13,
2016, 130 Stat. 1202, 1324–1326; Pub. L. 115–123, div.
E, title II, § 50202, Feb. 9, 2018, 132 Stat. 176; Pub.
L. 115–141, div. S, title XIII, § 1301(a)(1), (2), Mar.
23, 2018, 132 Stat. 1149, 1150; Pub. L. 115–271, title
II, § 2005(c)(1), title VI, §§ 6082, 6083(b), Oct. 24,
2018, 132 Stat. 3929, 3992, 3994; Pub. L. 116–94, div.
N, title I, § 107(a), Dec. 20, 2019, 133 Stat. 3102;
Pub. L. 116–127, div. F, § 6002(a), Mar. 18, 2020, 134
Stat. 202; Pub. L. 116–136, div. A, title III,
§ 3713(b), Mar. 27, 2020, 134 Stat. 423; Pub. L.
116–159, div. C, title V, § 2501(b)(2), Oct. 1, 2020, 134
Stat. 736; Pub. L. 116–260, div. CC, title I,
§§ 114(a), 122(a), (b), 125(a)(2)(A), 130, Dec. 27, 2020,
134 Stat. 2948, 2955, 2956, 2963, 2973; Pub. L. 117–7,
§ 2(a)(1), Apr. 14, 2021, 135 Stat. 251; Pub. L.
117–169, title I, §§ 11101(b), 11407(a), (b), Aug. 16,
2022, 136 Stat. 1869, 1904; Pub. L. 117–215, title I,
§ 103(b)(4)(A), Dec. 2, 2022, 136 Stat. 2263; Pub. L.
117–328, div. FF, title I, § 1262(b)(5), title IV,
§§ 4111(a),
4121(a)(3),
4124(b)(3),
4133(a)(2)(A),
4134(d), 4135(a), (b), 4141(a), Dec. 29, 2022, 136 Stat.
5682, 5897, 5903, 5909, 5919, 5921, 5922, 5928; Pub. L.
118–42, div. G, title I, § 304(a), Mar. 9, 2024, 138
Stat. 415.)
Editorial Notes
REFERENCES IN TEXT
Section 626(d) of Medicare Prescription Drug, Im-
provement, and Modernization Act of 2003, referred to
in subsec. (i)(2)(D)(i), is section 626(d) of Pub. L. 108–173,
which is set out as a note under this section.
Section 9320(k) of the Omnibus Budget Reconciliation
Act of 1986, as amended by section 6132 of the Omnibus
Budget Reconciliation Act of 1989, referred to in subsec.
(l)(1)(C), is section 9320(k) of Pub. L. 99–509, as amended,
which is set out as a note under section 1395k of this
title.
The amendments made by section 9320 of the Omni-
bus Budget Reconciliation Act of 1986, referred to in
subsec. (l)(3)(B), are amendments made by section 9320
of Pub. L. 99–509, which amended sections 1395k, 1395l,
1395u, 1395x, 1395y, 1395aa, 1395bb, 1395cc, 1395ww, 1396a,
and 1396n of this title and provisions set out as a note
under section 1395ww of this title.
Section 4521 of The Balanced Budget Act of 1997, re-
ferred to in subsec. (t)(7)(F), is section 4521 of Pub. L.
105–33, Aug. 5, 1997, 111 Stat. 444, which amended this
section and enacted provisions set out as a note under
this section.
CODIFICATION
Pub. L. 111–148, § 10221(a), enacted into law S. 1790,
One Hundred Eleventh Congress, as reported by the
Committee on Indian Affairs of the Senate in Dec. 2009,
‘‘[e]xcept as provided in’’ section 10221(b) of Pub. L.
111–148. Section 201(b) of S. 1790 would have amended
this section but was stricken out by section 10221(b)(4)
of Pub. L. 111–148.
AMENDMENTS
2024—Subsec. (z)(1)(A). Pub. L. 118–42, § 304(a)(1), sub-
stituted ‘‘with 2026’’ for ‘‘with 2025’’ and inserted ‘‘, or,
with respect to 2026, 1.88 percent’’ after ‘‘3.5 percent’’ in
introductory provisions.
Subsec. (z)(2)(B). Pub. L. 118–42, § 304(a)(2)(A), sub-
stituted ‘‘2026’’ for ‘‘2025’’ in heading and introductory
provisions.
Subsec. (z)(2)(C). Pub. L. 118–42, § 304(a)(2)(B), sub-
stituted ‘‘2027’’ for ‘‘2026’’ in heading and introductory
provisions.
Subsec. (z)(2)(D). Pub. L. 118–42, § 304(a)(2)(C), sub-
stituted ‘‘2025, and 2026’’ for ‘‘and 2025’’.
Subsec. (z)(4)(B). Pub. L. 118–42, § 304(a)(3), inserted
‘‘, or, with respect to 2026, 1.88 percent’’ after ‘‘3.5 per-
cent’’.
2022—Subsec. (a). Pub. L. 117–169, § 11407(b)(2), inserted
at end of concluding provisions ‘‘The Secretary shall
make such adjustments as may be necessary to the
amounts paid as specified under paragraph (1)(S)(ii) for
insulin furnished on or after July 1, 2023, through an
item of durable medical equipment covered under sec-
tion 1395x(n) of this title, such that the amount of coin-
surance payable by an individual enrolled under this
part for a month’s supply of such insulin does not ex-
ceed $35.’’
Subsec. (a)(1)(G). Pub. L. 117–169, § 11101(b)(1)(A), in-
serted ‘‘, subject to subsection (i)(9),’’ after ‘‘the
amounts paid’’.
Subsec. (a)(1)(S). Pub. L. 117–169, § 11407(b)(1), des-
ignated existing provisions as cl. (i), inserted ‘‘except
as provided in clause (ii),’’ before ‘‘with respect to
drugs and biologicals’’, and added cl. (ii).
Pub. L. 117–169, § 11101(b)(1)(B), substituted ‘‘subject
to subparagraph (EE), with respect to’’ for ‘‘with re-
spect to’’.
Subsec. (a)(1)(EE). Pub. L. 117–169, § 11101(b)(1)(C), (D),
added subpar. (EE).
Subsec. (a)(1)(FF). Pub. L. 117–328, § 4121(a)(3), added
subpar. (FF).
Subsec. (a)(1)(GG). Pub. L. 117–328, § 4133(a)(2)(A),
added subpar. (GG).
Subsec. (a)(1)(HH). Pub. L. 117–328, § 4134(d), added
subpar. (HH).
Subsec. (b)(13). Pub. L. 117–169, § 11407(a), added par.
(13).
Subsec. (c)(2). Pub. L. 117–328, § 4124(b)(3), inserted ‘‘or
intensive outpatient services’’ after ‘‘partial hos-
pitalization services’’.
Subsec. (i)(9). Pub. L. 117–169, § 11101(b)(2), added par.
(9).
Subsec. (i)(10). Pub. L. 117–328, § 4135(b), added par.
(10).
Subsec. (t)(2)(E). Pub. L. 117–328, § 4135(a)(1), inserted
‘‘and temporary additional payments for non-opioid
treatments for pain relief under paragraph (16)(G),’’
after ‘‘payments under paragraph (6)’’.
Subsec. (t)(6)(B)(iii). Pub. L. 117–328, § 4141(a)(1), sub-
stituted ‘‘Subject to subparagraph (K), a category’’ for
‘‘A category’’ in introductory provisions.
Subsec. (t)(6)(K). Pub. L. 117–328, § 4141(a)(2), added
subpar. (K).
Subsec. (t)(8)(F). Pub. L. 117–169, § 11101(b)(3), added
subpar. (F).
Subsec. (t)(16)(G). Pub. L. 117–328, § 4135(a)(2), added
subpar. (G).
Subsec. (z)(1)(A). Pub. L. 117–328, § 4111(a)(1), sub-
stituted ‘‘2025’’ for ‘‘2024’’ and inserted ‘‘(or, with re-
spect to 2025, 3.5 percent)’’ after ‘‘5 percent’’ in intro-
ductory provisions.
Subsec. (z)(2)(B). Pub. L. 117–328, § 4111(a)(2)(A), sub-
stituted ‘‘2025’’ for ‘‘2024’’ in heading and introductory
provisions.
Subsec. (z)(2)(C). Pub. L. 117–328, § 4111(a)(2)(B), sub-
stituted ‘‘2026’’ for ‘‘2025’’ in heading and introductory
provisions.
Subsec. (z)(2)(D). Pub. L. 117–328, § 4111(a)(2)(C), sub-
stituted ‘‘2023, 2024, and 2025’’ for ‘‘2023 and 2024’’.
Subsec. (z)(4)(B). Pub. L. 117–328, § 4111(a)(3), inserted
‘‘(or, with respect to 2025, 3.5 percent)’’ after ‘‘5 per-
cent’’.
Page 3064
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
Subsec. (bb)(3)(B). Pub. L. 117–328, § 1262(b)(5), which
directed substitution of ‘‘first begins prescribing nar-
cotic drugs in schedule III, IV, or V of section 812 of
title 21 for the purpose of maintenance or detoxifica-
tion treatment on or after January 1, 2021’’ for ‘‘first
receives a waiver under section 823(g) of title 21 on or
after January 1, 2019’’, was executed by making the sub-
stitution for ‘‘first receives a waiver under section
823(h) of title 21 on or after January 1, 2019’’, to reflect
the probable intent of Congress and the intervening
amendment by Pub. L. 117–215. See note below.
Pub. L. 117–215 substituted ‘‘823(h)’’ for ‘‘823(g)’’.
2021—Subsec. (f)(3)(A)(i). Pub. L. 117–7, § 2(a)(1)(A)(i),
added subcls. (I) and (II) and struck out former subcls.
(I) and (II) which read as follows:
‘‘(I) the per visit payment amount applicable to such
rural health clinic for rural health clinic services fur-
nished in 2020, increased by the percentage increase in
the MEI applicable to primary care services furnished
as of the first day of 2021; or
‘‘(II) the limit described in paragraph (2)(A); and’’.
Subsec. (f)(3)(A)(ii)(I). Pub. L. 117–7, § 2(a)(1)(A)(ii),
substituted ‘‘under subclause (I) or (II) of clause (i), as
applicable,’’ for ‘‘under clause (i)(I)’’.
Subsec. (f)(3)(B). Pub. L. 117–7, § 2(a)(1)(B), added sub-
par. (B) and struck out former subpar. (B) which read
as follows:
‘‘(B) A rural health clinic described in this subpara-
graph is a rural health clinic that, as of December 31,
2019, was—
‘‘(i) in a hospital with less than 50 beds; and
‘‘(ii) enrolled under section 1395cc(j) of this title.’’
2020—Subsec. (a). Pub. L. 116–260, § 122(a), in con-
cluding provisions, substituted ‘‘section 1395m(o) of this
title’’ for ‘‘section 1395m(0) of this title’’, realigned
margins, and inserted at end ‘‘For services furnished on
or after January 1, 2022, paragraph (1)(Y) shall apply
with respect to a colorectal cancer screening test re-
gardless of the code that is billed for the establishment
of a diagnosis as a result of the test, or for the removal
of tissue or other matter or other procedure that is fur-
nished in connection with, as a result of, and in the
same clinical encounter as the screening test.’’
Subsec. (a)(1)(Y). Pub. L. 116–260, § 122(b)(1), inserted
‘‘subject to subsection (dd),’’ before ‘‘with respect to’’.
Subsec. (a)(1)(DD). Pub. L. 116–127, § 6002(a)(1), which
directed adding subpar. (DD) before the period at the
end of par. (1), was executed by adding it before the
semicolon at the end, to reflect the probable intent of
Congress.
Subsec. (a)(10). Pub. L. 116–260, § 125(a)(2)(A), added
par. (10).
Subsec. (b)(11). Pub. L. 116–127, § 6002(a)(2), added par.
(11).
Subsec. (b)(12). Pub. L. 116–136 added par. (12).
Subsec. (f). Pub. L. 116–260, § 130(2), (3)(A), (4), des-
ignated existing provisions as par. (1), redesignated
former pars. (1) and (2) as subpars. (A) and (B), respec-
tively, of par. (1), and added pars. (2) and (3).
Subsec. (f)(1). Pub. L. 116–260, § 130(3)(B), which di-
rected insertion of ‘‘prior to April 1, 2021’’ after ‘‘serv-
ices provided’’, was executed by making the insertion
after ‘‘services provided’’ the second place appearing,
to reflect the probable intent of Congress.
Subsec. (f)(2). Pub. L. 116–260, § 130(1), inserted ‘‘(be-
fore April 1, 2021)’’ after ‘‘in a subsequent year’’ and
substituted ‘‘this paragraph’’ for ‘‘this subsection’’.
Subsec. (j). Pub. L. 116–159 inserted before period at
end ‘‘(or, in the case of such a determination made with
respect to a payment made on or after March 27, 2020,
and during the emergency period described in section
1320b–5(g)(1)(B) of this title under the program de-
scribed in section 421.214 of title 42, Code of Federal
Regulations (or any successor regulation), at a rate of
4 percent)’’.
Subsec. (z)(2)(B). Pub. L. 116–260, § 114(a)(1), sub-
stituted ‘‘through 2024’’ for ‘‘and 2022’’ in heading and
‘‘each of 2021 through 2024’’ for ‘‘2021 and 2022’’ in intro-
ductory provisions.
Subsec. (z)(2)(C). Pub. L. 116–260, § 114(a)(2), sub-
stituted ‘‘2025’’ for ‘‘2023’’ in heading and introductory
provisions.
Subsec. (z)(2)(D). Pub. L. 116–260, § 114(a)(3), inserted
at end ‘‘With respect to 2023 and 2024, the Secretary
shall use the same percentage criteria for counts of pa-
tients that are used in 2022.’’
Subsec. (cc). Pub. L. 116–127, § 6002(a)(3), added subsec.
(cc).
Subsec. (dd). Pub. L. 116–260, § 122(b)(2), added subsec.
(dd).
2019—Subsec. (t)(6)(E)(i). Pub. L. 116–94, § 107(a)(1),
substituted ‘‘2018 or 2020’’ for ‘‘2018’’.
Subsec. (t)(6)(J). Pub. L. 116–94, § 107(a)(2), added sub-
par. (J).
2018—Subsec. (a)(1)(CC). Pub. L. 115–271, § 2005(c)(1),
added subpar. (CC).
Subsec. (g)(1). Pub. L. 115–123, § 50202(1), designated
existing provisions as subpar. (A), inserted ‘‘The pre-
ceding sentence shall not apply to expenses incurred
with respect to services furnished after December 31,
2017.’’ after ‘‘for purposes of subsections (a) and (b).’’,
and added subpar. (B).
Subsec. (g)(3). Pub. L. 115–123, § 50202(2), designated
existing provisions as subpar. (A), inserted ‘‘The pre-
ceding sentence shall not apply to expenses incurred
with respect to services furnished after December 31,
2017.’’ after ‘‘for purposes of subsections (a) and (b).’’,
and added subpar. (B).
Subsec. (g)(5)(D). Pub. L. 115–123, § 50202(3)(A), redesig-
nated subpar. (D) as par. (8) of subsec. (g).
Subsec. (g)(5)(E)(iv). Pub. L. 115–123, § 50202(3)(B), in-
serted ‘‘, except as such process is applied under para-
graph (7)(B)’’ before period at end.
Subsec. (g)(7). Pub. L. 115–123, § 50202(4), added par. (7).
Subsec. (g)(8). Pub. L. 115–123, § 50202(3)(A), redesig-
nated par. (5)(D) as par. (8).
Subsec. (i)(8). Pub. L. 115–271, § 6082(b), added par. (8).
Subsec. (t)(6)(C)(i). Pub. L. 115–141, § 1301(a)(1)(A), sub-
stituted ‘‘Subject to subparagraph (G), the payment’’
for ‘‘The payment’’ in introductory provisions.
Subsec. (t)(6)(D)(i). Pub. L. 115–141, § 1301(a)(1)(B), in-
serted ‘‘subject to subparagraph (H),’’ before ‘‘in the
case’’.
Subsec. (t)(6)(E)(i). Pub. L. 115–141, § 1301(a)(2), in-
serted at end ‘‘This clause shall not apply for 2018.’’
Subsec. (t)(6)(G) to (I). Pub. L. 115–141, § 1301(a)(1)(C),
inserted subpars. (G) to (I).
Subsec. (t)(22). Pub. L. 115–271, § 6082(a), added par.
(22).
Subsecs. (z), (aa). Pub. L. 115–271, § 6083(b)(1), redesig-
nated subsec. (z), relating to medical review of spinal
subluxation services, as (aa).
Subsec. (bb). Pub. L. 115–271, § 6083(b)(2), added subsec.
(bb).
2016—Subsec. (a)(1)(BB). Pub. L. 114–255, § 5012(c)(1),
added subpar. (BB).
Subsec. (t)(18)(B). Pub. L. 114–255, § 16002(b)(1), in-
serted ‘‘, subject to subparagraph (C),’’ after ‘‘shall’’.
Subsec. (t)(18)(C). Pub. L. 114–255, § 16002(b)(2), added
subpar. (C).
Subsec. (t)(21)(B)(i). Pub. L. 114–255, § 16001(a)(1)(A),
substituted ‘‘the subsequent provisions of this subpara-
graph’’ for ‘‘clause (ii)’’.
Subsec.
(t)(21)(B)(iii)
to
(v).
Pub.
L.
114–255,
§ 16001(a)(1)(B), added cls. (iii) to (v).
Subsec. (t)(21)(B)(vi). Pub. L. 114–255, § 16002(a)(1),
added cl. (vi).
Subsec. (t)(21)(B)(vii). Pub. L. 114–255, § 16002(a)(2), in-
serted after first sentence ‘‘Not later than 2 years after
the date the Secretary receives an attestation under
clause (vi) relating to compliance of a department of a
provider with requirements referred to in such clause,
the Secretary shall audit the compliance with such re-
quirements with respect to the department.’’
Pub. L. 114–255, § 16001(a)(1)(B), added cl. (vii).
Subsec. (t)(21)(B)(viii). Pub. L. 114–255, § 16001(a)(1)(B),
added cl. (viii).
Subsec.
(t)(21)(B)(viii)(III).
Pub.
L.
114–255,
§ 16002(a)(3), inserted at end ‘‘For purposes of carrying
out this subparagraph with respect to clause (vi) (and
clause (vii) insofar as it relates to such clause),
$2,000,000 shall be available from the Federal Supple-
Page 3065
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
mentary Medical Insurance Trust Fund under section
1395t of this title, to remain available until expended.’’
Subsec. (t)(21)(E)(iv). Pub. L. 114–255, § 16001(a)(2),
added cl. (iv).
2015—Subsec. (a)(1)(AA). Pub. L. 114–113, § 504(b)(1),
added subpar. (AA).
Subsec. (g)(5)(A). Pub. L. 114–10, § 202(a)(1), sub-
stituted ‘‘December 31, 2017’’ for ‘‘March 31, 2015’’.
Subsec. (g)(5)(C)(i). Pub. L. 114–10, § 202(b)(1)(A), in-
serted ‘‘, subject to subparagraph (E),’’ after ‘‘manual
medical review process that’’.
Subsec. (g)(5)(E). Pub. L. 114–10, § 202(b)(1)(B), added
subpar. (E).
Subsec. (g)(6)(A). Pub. L. 114–10, § 202(a)(2), sub-
stituted ‘‘December 31, 2017’’ for ‘‘March 31, 2015’’ and
‘‘2012 through 2017’’ for ‘‘2012, 2013, 2014, or the first
three months of 2015’’.
Subsec. (t)(1)(B)(v). Pub. L. 114–74, § 603(1), added cl.
(v).
Subsec. (t)(16)(F). Pub. L. 114–113, § 502(b), added sub-
par. (F).
Subsec. (t)(21). Pub. L. 114–74, § 603(2), added par. (21).
Subsec. (x)(3). Pub. L. 114–10, § 101(e)(3)(A), inserted at
end ‘‘The amount of the additional payment for a serv-
ice under this subsection and subsection (z) shall be de-
termined without regard to any additional payment for
the service under subsection (z) and this subsection, re-
spectively.’’
Subsec. (y)(3). Pub. L. 114–10, § 101(e)(3)(B), inserted at
end ‘‘The amount of the additional payment for a serv-
ice under this subsection and subsection (z) shall be de-
termined without regard to any additional payment for
the service under subsection (z) and this subsection, re-
spectively.’’
Subsec. (z). Pub. L. 114–10, § 514(a), added subsec. (z)
relating to medical review of spinal subluxation serv-
ices.
Pub. L. 114–10, § 101(e)(2), added subsec. (z) relating to
incentive payments for participation in eligible alter-
native payment models.
2014—Subsec.
(a)(1)(D)(i).
Pub.
L.
113–93,
§ 216(b)(1)(A)(i)–(iii), designated existing provisions as
subcl. (I), substituted ‘‘subsection (h)(1) (for tests fur-
nished before January 1, 2017)’’ for ‘‘subsection (h)(1)’’,
and added subcl. (II).
Subsec. (a)(1)(D)(ii). Pub. L. 113–93, § 216(b)(1)(A)(iv),
substituted ‘‘for tests furnished before January 1, 2017,
on the basis’’ for ‘‘on the basis’’.
Subsec.
(a)(2)(D)(i).
Pub.
L.
113–93,
§ 216(b)(1)(B)(i)–(iii), designated existing provisions as
subcl. (I), substituted ‘‘subsection (h)(1) (for tests fur-
nished before January 1, 2017)’’ for ‘‘subsection (h)(1)’’,
and added subcl. (II).
Subsec. (a)(2)(D)(ii). Pub. L. 113–93, § 216(b)(1)(B)(iv),
substituted ‘‘for tests furnished before January 1, 2017,
on the basis’’ for ‘‘on the basis’’.
Subsec. (b)(3)(B). Pub. L. 113–93, § 216(b)(1)(C), sub-
stituted ‘‘for tests furnished before January 1, 2017, on
the basis’’ for ‘‘on the basis’’.
Subsec. (g)(5)(A). Pub. L. 113–93, § 103(1), substituted
‘‘March 31, 2015’’ for ‘‘March 31, 2014’’.
Subsec. (g)(6)(A). Pub. L. 113–93, § 103(2), substituted
‘‘March 31, 2015’’ for ‘‘March 31, 2014’’ and ‘‘2012, 2013,
2014, or the first three months of 2015’’ for ‘‘2012, 2013,
or the first three months of 2014’’.
Subsec. (h)(2)(A)(i). Pub. L. 113–93, § 216(b)(1)(D), sub-
stituted ‘‘and, for tests furnished before April 1, 2014,
subject to’’ for ‘‘and subject to’’.
Subsec. (h)(3). Pub. L. 113–93, § 216(b)(1)(E), in intro-
ductory provisions, substituted ‘‘fee schedules (for tests
furnished before January 1, 2017) or under section
1395m–1 of this title (for tests furnished on or after Jan-
uary 1, 2017), subject to subsection (b)(5) of such sec-
tion’’ for ‘‘fee schedules’’.
Subsec. (h)(6). Pub. L. 113–93, § 216(b)(1)(F), sub-
stituted ‘‘For tests furnished before January 1, 2017, in
the case’’ for ‘‘In the case’’.
Subsec. (h)(7). Pub. L. 113–93, § 216(b)(1)(G), sub-
stituted ‘‘and (4) and section 1395m–1 of this title’’ for
‘‘and (4)’’ and ‘‘under this part’’ for ‘‘under this sub-
section’’.
Subsec. (t)(16)(E). Pub. L. 113–93, § 218(b)(2), added sub-
par. (E).
Subsec. (t)(20). Pub. L. 113–93, § 218(a)(2)(A), added par.
(20).
2013—Subsec. (g)(5)(A). Pub. L. 113–67, § 1103(1), sub-
stituted ‘‘March 31, 2014’’ for ‘‘December 31, 2013’’ in
first sentence.
Pub. L. 112–240, § 603(a)(1), substituted ‘‘December 31,
2013’’ for ‘‘December 31, 2012’’ in first sentence.
Subsec. (g)(5)(D). Pub. L. 112–240, § 603(c), added sub-
par. (D).
Subsec. (g)(6). Pub. L. 112–240, § 603(b), designated ex-
isting provisions as subpar. (A) and added subpar. (B).
Subsec. (g)(6)(A). Pub. L. 113–67, § 1103(2), substituted
‘‘March 31, 2014’’ for ‘‘December 31, 2013’’ and ‘‘, 2013, or
the first three months of 2014’’ for ‘‘or 2013’’.
Pub. L. 112–240, § 603(a)(2), substituted ‘‘December 31,
2013’’ for ‘‘December 31, 2012’’ and inserted ‘‘or 2013’’
after ‘‘during 2012’’.
Subsec. (t)(16)(D). Pub. L. 112–240, § 634, added subpar.
(D).
2012—Subsec. (g)(1), (3). Pub. L. 112–96, § 3005(b)(1),
substituted ‘‘but (except as provided in paragraph (6))
not described in subsection (a)(8)(B)’’ for ‘‘but not de-
scribed in subsection (a)(8)(B) of this section’’.
Subsec. (g)(5). Pub. L. 112–96, § 3005(a), designated ex-
isting provisions as subpar. (A), substituted ‘‘December
31, 2012’’ for ‘‘February 29, 2012’’, inserted ‘‘and if the re-
quirement of subparagraph (B) is met’’ after ‘‘deter-
mined to be medically necessary’’ and ‘‘made in accord-
ance with such requirement’’ after ‘‘receipt of the re-
quest’’, and added subpars. (B) and (C).
Subsec. (g)(6). Pub. L. 112–96, § 3005(b)(2), added par.
(6).
Subsec. (h)(2)(A)(i). Pub. L. 112–96, § 3202(1), sub-
stituted ‘‘clause (v), subparagraph (B), and paragraph
(4)’’ for ‘‘paragraph (4)’’.
Subsec. (h)(2)(A)(iv). Pub. L. 112–96, § 3202(2), realigned
margins.
Subsec. (h)(2)(A)(v). Pub. L. 112–96, § 3202(3), added cl.
(v).
Subsec. (t)(7)(D)(i)(II). Pub. L. 112–96, § 3002(a)(1), sub-
stituted ‘‘January 1, 2013’’ for ‘‘March 1, 2012’’ and ‘‘or
2012’’ for ‘‘or the first two months of 2012’’.
Subsec. (t)(7)(D)(i)(III). Pub. L. 112–96, § 3002(a)(2), sub-
stituted ‘‘January 1, 2013, for which’’ for ‘‘March 1, 2012,
for which’’.
2011—Subsec. (g)(5). Pub. L. 112–78, § 304, substituted
‘‘February 29, 2012’’ for ‘‘December 31, 2011’’.
Subsec. (t)(7)(D)(i)(II). Pub. L. 112–78, § 308(1), sub-
stituted ‘‘March 1, 2012’’ for ‘‘January 1, 2012’’ and
‘‘2011, or the first two months of 2012’’ for ‘‘or 2011’’.
Subsec. (t)(7)(D)(i)(III). Pub. L. 112–78, § 308(2), sub-
stituted ‘‘2009, and before March 1, 2012, for which’’ for
‘‘2009, and before January 1, 2012, for which’’ and ‘‘2010,
and before March 1, 2012, the preceding’’ for ‘‘2010, and
before January 1, 2012, the preceding’’.
2010—Subsec. (a). Pub. L. 111–148, § 10501(i)(3)(C)(ii), in-
serted concluding provisions.
Subsec. (a)(1)(K). Pub. L. 111–148, § 3114, inserted ‘‘(or
100 percent for services furnished on or after January 1,
2011)’’ after ‘‘1992, 65 percent’’.
Subsec. (a)(1)(N). Pub. L. 111–148, § 4103(c)(1)(A), in-
serted ‘‘other than personalized prevention plan serv-
ices (as defined in section 1395x(hhh)(1) of this title)’’
after ‘‘(as defined in section 1395w–4(j)(3) of this title)’’.
Subsec. (a)(1)(T). Pub. L. 111–148, § 4104(b)(1), as
amended by Pub. L. 111–148, § 10406, inserted ‘‘(or 100
percent if such services are recommended with a grade
of A or B by the United States Preventive Services
Task Force for any indication or population and are ap-
propriate for the individual)’’ after ‘‘80 percent’’.
Subsec. (a)(1)(W). Pub. L. 111–148, § 4104(b)(2), as
amended by Pub. L. 111–148, § 10406, inserted ‘‘(if such
subparagraph were applied, by substituting ‘100 per-
cent’ for ‘80 percent’)’’ after ‘‘subparagraph (D)’’ in cl.
(i) and substituted ‘‘100 percent’’ for ‘‘80 percent’’ in cl.
(ii).
Subsec. (a)(1)(X). Pub. L. 111–148, § 4103(c)(1)(B), (C),
added subpar. (X).
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§ 1395l
Subsec. (a)(1)(Y). Pub. L. 111–148, § 4104(b)(3), (4), as
amended by Pub. L. 111–148, § 10406, added subpar. (Y).
Subsec. (a)(1)(Z). Pub. L. 111–148, § 10501(i)(3)(B), added
subpar. (Z).
Subsec. (a)(2)(F) to (H). Pub. L. 111–148, § 4103(c)(3)(B),
which directed amendment of par. (2) by striking ‘‘and’’
at end of subpar. (F), substituting ‘‘; and’’ for comma
at end of subpar. (G)(ii), and adding subpar. (H) after
subpar. (G)(ii), was executed as directed despite the
presence of concluding provisions following subpar.
(G)(ii), which were added as part of subpar. (G) by Pub.
L. 105–33, § 4603(c)(2)(A)(iv).
Subsec.
(a)(3)(B)(i).
Pub.
L.
111–148,
§ 10501(i)(3)(C)(i)(I), inserted subcl. (I) designation after
‘‘otherwise been provided’’ and ‘‘, or (II) in the case of
such services furnished on or after the implementation
date of the prospective payment system under section
1395m(o) of this title, under such section (calculated as
if ‘100 percent’ were substituted for ‘80 percent’ in such
section) for such services if the individual had not been
so enrolled’’ after ‘‘been so enrolled’’.
Subsec. (b). Pub. L. 111–148, § 4104(c)(2), inserted at end
‘‘Paragraph (1) of the first sentence of this subsection
shall apply with respect to a colorectal cancer screen-
ing test regardless of the code that is billed for the es-
tablishment of a diagnosis as a result of the test, or for
the removal of tissue or other matter or other proce-
dure that is furnished in connection with, as a result
of, and in the same clinical encounter as the screening
test.’’
Subsec. (b)(1). Pub. L. 111–148, § 4104(c)(1), substituted
‘‘preventive services described in subparagraph (A) of
section 1395x(ddd)(3) of this title that are recommended
with a grade of A or B by the United States Preventive
Services Task Force for any indication or population
and are appropriate for the individual.’’ for ‘‘items and
services described in section 1395x(s)(10)(A) of this
title’’.
Subsec. (b)(10). Pub. L. 111–148, § 4103(c)(4), added par.
(10).
Subsec. (g)(5). Pub. L. 111–309, § 104, substituted ‘‘and
ending on December 31, 2011’’ for ‘‘and ending on March
31, 2010’’.
Pub. L. 111–148, § 3103, which directed substitution of
‘‘December 31, 2010’’ for ‘‘December 31, 2009’’, could not
be executed because ‘‘December 31, 2009’’ did not appear
subsequent to amendment by Pub. L. 111–144. See note
below.
Pub. L. 111–144 substituted ‘‘March 31, 2010’’ for ‘‘De-
cember 31, 2009’’.
Subsec. (h)(2)(A)(i). Pub. L. 111–148, § 3401(l)(1), in-
serted ‘‘, subject to clause (iv),’’ after ‘‘year) by’’ and
substituted ‘‘and 2010’’ for ‘‘through 2013’’.
Subsec. (h)(2)(A)(iv). Pub. L. 111–148, § 3401(l)(2), added
cl. (iv).
Subsec. (i)(2)(D)(v), (vi). Pub. L. 111–148, § 3401(k),
added cl. (v) and redesignated former cl. (v) as (vi).
Subsec. (t)(1)(B)(iv). Pub. L. 111–148, § 4103(c)(3)(A),
substituted ‘‘, diagnostic mammography, or personal-
ized prevention plan services (as defined in section
1395x(hhh)(1) of this title)’’ for ‘‘and diagnostic mam-
mography’’.
Subsec. (t)(2)(D). Pub. L. 111–148, § 10324(b)(1), sub-
stituted ‘‘subject to paragraph (19), the Secretary’’ for
‘‘the Secretary’’.
Subsec. (t)(3)(C)(iv). Pub. L. 111–148, § 3401(i)(1), in-
serted ‘‘and subparagraph (F) of this paragraph’’ after
‘‘(17)’’.
Subsec. (t)(3)(F). Pub. L. 111–148, § 3401(i)(2), added
subpar. (F).
Subsec. (t)(3)(G). Pub. L. 111–152, § 1105(e)(3), struck
out cl. (i) designation and heading, redesignated subcls.
(I) to (V) of former cl. (i) as cls. (i) to (v), respectively,
and realigned margins.
Pub. L. 111–148, § 3401(i)(2), added subpar. (G).
Subsec. (t)(3)(G)(i)(I). Pub. L. 111–148, § 10319(g)(1),
struck out ‘‘and’’ at end.
Subsec. (t)(3)(G)(i)(II). Pub. L. 111–152, § 1105(e)(1)(A),
placed subcl. (II), which was directed to be inserted
after subcl. (II) by Pub. 111–148, § 10319(g)(3), imme-
diately after subcl. (I) and struck out ‘‘and’’ at end. See
Amendment note below.
Pub. L. 111–148, § 10319(g)(3), which directed addition
of subcl. (II) ‘‘after subclause (II)’’, could not be exe-
cuted. See Amendment note above.
Subsec. (t)(3)(G)(i)(III). Pub. L. 111–152, § 1105(e)(1),
added subcl. (III) and struck out former subcl. (III)
which read as follows: ‘‘subject to clause (ii), for each
of 2014 through 2019, 0.2 percentage point.’’
Pub. L. 111–148, § 10319(g)(4), substituted ‘‘2014’’ for
‘‘2012’’.
Pub. L. 111–148, § 10319(g)(2), redesignated subcl. (II) as
(III).
Subsec.
(t)(3)(G)(i)(IV),
(V).
Pub.
L.
111–152,
§ 1105(e)(1)(B), added subcls. (IV) and (V).
Subsec. (t)(3)(G)(ii). Pub. L. 111–152, § 1105(e)(2), struck
out cl. (ii). Prior to amendment, text read as follows:
‘‘Clause (i)(II) shall be applied with respect to any of
2014 through 2019 by substituting ‘0.0 percentage points’
for ‘0.2 percentage point’, if for such year—
‘‘(I) the excess (if any) of—
‘‘(aa) the total percentage of the non-elderly in-
sured population for the preceding year (based on
the most recent estimates available from the Direc-
tor of the Congressional Budget Office before a vote
in either House on the Patient Protection and Af-
fordable Care Act that, if determined in the affirm-
ative, would clear such Act for enrollment); over
‘‘(bb) the total percentage of the non-elderly in-
sured population for such preceding year (as esti-
mated by the Secretary); exceeds
‘‘(II) 5 percentage points.’’
Subsec. (t)(7)(D)(i)(II). Pub. L. 111–309, § 108(1), sub-
stituted ‘‘2012’’ for ‘‘2011’’ in first sentence and ‘‘2010, or
2011’’ for ‘‘or 2010’’ in second sentence.
Pub. L. 111–148, § 3121(a)(1)(B), substituted ‘‘, 2009, or
2010’’ for ‘‘or 2009’’.
Pub. L. 111–148, § 3121(a)(1)(A), substituted ‘‘2011’’ for
‘‘2010’’.
Subsec. (t)(7)(D)(i)(III). Pub. L. 111–309, § 108(2), which
directed substitution of ‘‘January 1, 2012’’ for ‘‘January
1, 2011’’, was executed by making the substitution in
two places to reflect the probable intent of Congress.
Pub. L. 111–148, § 3121(b), inserted at end ‘‘In the case
of covered OPD services furnished on or after January
1, 2010, and before January 1, 2011, the preceding sen-
tence shall be applied without regard to the 100-bed
limitation.’’
Pub. L. 111–148, § 3121(a)(2), substituted ‘‘2009, and be-
fore January 1, 2011’’ for ‘‘2009, and before January 1,
2010’’.
Subsec. (t)(18), (19). Pub. L. 111–148, §§ 3138, 10324(b)(2),
added pars. (18) and (19).
Subsecs. (x), (y). Pub. L. 111–148, § 5501(a)(1), (b)(1),
added subsecs. (x) and (y).
2008—Subsec. (a)(1)(D)(iii). Pub. L. 110–275, § 145(a)(2),
before comma at end of subpar. (D), struck out cl. (iii),
which read ‘‘on the basis of a rate established under a
demonstration project under section 1395w–3(e) of this
title, the amount paid shall be equal to 100 percent of
such rate’’.
Subsec. (a)(1)(W). Pub. L. 110–275, § 101(a)(2), added
subpar. (W).
Subsec. (a)(8)(A), (B). Pub. L. 110–275, § 143(b)(2), sub-
stituted ‘‘, outpatient speech-language pathology serv-
ices,’’ for ‘‘(which includes outpatient speech-language
pathology services)’’ in introductory provisions.
Subsec. (b)(9). Pub. L. 110–275, § 101(b)(2), added par. (9)
at end of first sentence.
Subsec. (c). Pub. L. 110–275, § 102, amended subsec. (c)
generally. Prior to amendment, text read as follows:
‘‘Notwithstanding any other provision of this part,
with respect to expenses incurred in any calendar year
in connection with the treatment of mental, psycho-
neurotic, and personality disorders of an individual
who is not an inpatient of a hospital at the time such
expenses are incurred, there shall be considered as in-
curred expenses for purposes of subsections (a) and (b)
of this section only 621⁄2 percent of such expenses. For
purposes of this subsection, the term ‘treatment’ does
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
not include brief office visits (as defined by the Sec-
retary) for the sole purpose of monitoring or changing
drug prescriptions used in the treatment of such dis-
orders or partial hospitalization services that are not
directly provided by a physician.’’
Subsec. (g)(1). Pub. L. 110–275, § 143(b)(3), inserted
‘‘and speech-language pathology services of the type
described in such section through the application of
section 1395x(ll)(2) of this title’’ after ‘‘1395x(p) of this
title’’ and ‘‘and speech-language pathology services’’
after ‘‘and physical therapy services’’.
Subsec. (g)(5). Pub. L. 110–275, § 141, substituted ‘‘De-
cember 31, 2009’’ for ‘‘June 30, 2008’’.
Subsec. (h)(2)(A)(i). Pub. L. 110–275, § 145(b), inserted
‘‘minus, for each of the years 2009 through 2013, 0.5 per-
centage points’’ after ‘‘city average)’’.
Subsec. (t)(7)(D)(i)(II). Pub. L. 110–275, § 147(1), sub-
stituted ‘‘January 1, 2010’’ for ‘‘January 1, 2009’’ and
‘‘For purposes of the preceding sentence, the applicable
percentage shall be 95 percent with respect to covered
OPD services furnished in 2006, 90 percent with respect
to such services furnished in 2007, and 85 percent with
respect to such services furnished in 2008 or 2009.’’ for
‘‘For purposes of the previous sentence, with respect to
covered OPD services furnished during 2006, 2007, or
2008, the applicable percentage shall be 95 percent, 90
percent, and 85 percent, respectively.’’
Subsec. (t)(7)(D)(i)(III). Pub. L. 110–275, § 147(2), added
subcl. (III).
Subsec. (t)(16)(C). Pub. L. 110–275, § 142, substituted
‘‘January 1, 2010’’ for ‘‘July 1, 2008’’ in two places.
Subsec. (v). Pub. L. 110–275, § 151(a), added subsec. (v).
Subsec. (w). Pub. L. 110–275, § 184, added subsec. (w).
2007—Subsec. (g)(5). Pub. L. 110–173, § 105, substituted
‘‘June 30, 2008’’ for ‘‘December 31, 2007’’.
Subsec. (h)(9). Pub. L. 110–173, § 113, added par. (9).
Subsec. (t)(16)(C). Pub. L. 110–173, § 106, in heading, in-
serted ‘‘and therapeutic radiopharmaceuticals’’ before
‘‘at charges’’, in first sentence, substituted ‘‘July 1,
2008’’ for ‘‘January 1, 2008’’ and inserted ‘‘and for thera-
peutic radiopharmaceuticals furnished on or after Jan-
uary 1, 2008, and before July 1, 2008,’’ after ‘‘July 1,
2008,’’ and ‘‘or therapeutic radiopharmaceutical’’ after
‘‘the device’’ and after ‘‘each device’’, and, in second
sentence,
inserted
‘‘or
therapeutic
radiopharma-
ceuticals’’ after ‘‘such devices’’.
Subsec. (u)(1). Pub. L. 110–173, § 102(1), substituted
‘‘before July 1, 2008’’ for ‘‘before January 1, 2008’’ in in-
troductory provisions.
Subsec. (u)(4)(D), (E). Pub. L. 110–173, § 102(2), added
subpar. (D) and redesignated former subpar. (D) as (E).
2006—Subsec. (b)(7). Pub. L. 109–171, § 5112(e), added
par. (7) at end of first sentence.
Subsec. (b)(8). Pub. L. 109–171, § 5113(a), added par. (8)
at end of first sentence.
Subsec. (g)(1), (3). Pub. L. 109–171, § 5107(a)(1)(A), sub-
stituted ‘‘paragraphs (4) and (5)’’ for ‘‘paragraph (4)’’.
Subsec. (g)(5). Pub. L. 109–432, § 201, substituted ‘‘the
period beginning on January 1, 2006, and ending on De-
cember 31, 2007,’’ for ‘‘2006’’.
Pub. L. 109–171, § 5107(a)(1)(B), added par. (5).
Subsec. (i)(2)(A). Pub. L. 109–171, § 5103(1), inserted
‘‘subject to subparagraph (E),’’ after ‘‘subparagraph
(D),’’.
Subsec. (i)(2)(D)(ii). Pub. L. 109–171, § 5103(2), inserted
‘‘and taking into account reduced expenditures that
would apply if subparagraph (E) were to continue to
apply, as estimated by the Secretary’’ before period at
end.
Subsec. (i)(2)(D)(iv), (v). Pub. L. 109–432, § 109(b)(1),
added cl. (iv) and redesignated former cl. (iv) as (v).
Subsec. (i)(2)(E). Pub. L. 109–171, § 5103(3), added sub-
par. (E).
Subsec. (i)(7). Pub. L. 109–432, § 109(b)(2), added par.
(7).
Subsec. (t)(2)(H). Pub. L. 109–432, § 107(b)(1), inserted
‘‘and for stranded and non-stranded devices furnished
on or after July 1, 2007’’ before period at end.
Subsec. (t)(3)(C)(iv). Pub. L. 109–432, § 109(a)(1)(A), in-
serted ‘‘subject to paragraph (17),’’ after ‘‘this subpara-
graph,’’.
Subsec. (t)(7)(D)(i). Pub. L. 109–171, § 5105, designated
existing provisions as subcl. (I) and added subcl. (II).
Subsec. (t)(16)(C). Pub. L. 109–432, § 107(a), substituted
‘‘2008’’ for ‘‘2007’’.
Subsec. (t)(17). Pub. L. 109–432, § 109(a)(1)(B), added
par. (17).
2003—Subsec.
(a)(1)(D)(iii).
Pub.
L.
108–173,
§ 302(b)(2)(C), added cl. (iii).
Subsec. (a)(1)(G). Pub. L. 108–173, § 626(c), added sub-
par. (G).
Subsec. (a)(1)(S). Pub. L. 108–173, § 642(b), inserted
‘‘(including intravenous immune globulin (as defined in
section 1395x(zz) of this title))’’ after ‘‘with respect to
drugs and biologicals’’.
Pub. L. 108–173, § 303(i)(3)(A), inserted ‘‘(or, if applica-
ble, under section 1395w–3, 1395w–3a, or 1395w–3b of this
title)’’ after ‘‘1395u(o) of this title’’.
Subsec. (a)(1)(V). Pub. L. 108–173, § 302(b)(2)(A), (B),
added subpar. (V).
Subsec. (a)(2)(E)(i). Pub. L. 108–173, § 614(b), inserted
‘‘and, for services furnished on or after January 1, 2005,
diagnostic mammography’’ after ‘‘screening mammog-
raphy’’.
Subsec. (a)(3). Pub. L. 108–173, § 237(a), amended par.
(3) generally. Prior to amendment, par. (3) read as fol-
lows: ‘‘in the case of services described in section
1395k(a)(2)(D) of this title, the costs which are reason-
able and related to the cost of furnishing such services
or which are based on such other tests of reasonable-
ness as the Secretary may prescribe in regulations, in-
cluding those authorized under section 1395x(v)(1)(A) of
this title, less the amount a provider may charge as de-
scribed in clause (ii) of section 1395cc(a)(2)(A) of this
title, but in no case may the payment for such services
(other than for items and services described in section
1395x(s)(10)(A) of this title) exceed 80 percent of such
costs;’’.
Subsec. (b). Pub. L. 108–173, § 629, substituted ‘‘, $100
for 1991 through 2004, $110 for 2005, and for a subsequent
year the amount of such deductible for the previous
year increased by the annual percentage increase in the
monthly actuarial rate under section 1395r(a)(1) of this
title ending with such subsequent year (rounded to the
nearest $1)’’ for ‘‘and $100 for 1991 and subsequent
years’’ before semicolon in first sentence.
Subsec. (g)(4). Pub. L. 108–173, § 624(a)(1), substituted
‘‘2002, 2004, and 2005’’ for ‘‘and 2002’’.
Subsec. (h)(2)(A)(ii)(IV). Pub. L. 108–173, § 628, sub-
stituted ‘‘, 1998 through 2002, and 2004 through 2008’’ for
‘‘and 1998 through 2002’’.
Subsec. (h)(5)(D). Pub. L. 108–173, § 736(b)(1), sub-
stituted ‘‘clinic,’’ for ‘‘clinic,,’’.
Subsec. (h)(8). Pub. L. 108–173, § 942(b), added par. (8).
Subsec. (i)(2)(A). Pub. L. 108–173, § 626(b)(1)(A), sub-
stituted ‘‘For services furnished prior to the implemen-
tation of the system described in subparagraph (D),
the’’ for ‘‘The’’ in introductory provisions.
Subsec. (i)(2)(A)(i). Pub. L. 108–173, § 626(b)(1)(B),
struck out ‘‘taken not later than January 1, 1995, and
every 5 years thereafter,’’ before ‘‘of the actual audited
costs’’.
Subsec. (i)(2)(C). Pub. L. 108–173, § 626(a), amended
subpar. (C) generally. Prior to amendment, subpar. (C)
read as follows: ‘‘Notwithstanding the second sentence
of subparagraph (A) or the second sentence of subpara-
graph (B), if the Secretary has not updated amounts es-
tablished under such subparagraphs with respect to fa-
cility services furnished during a fiscal year (beginning
with fiscal year 1996), such amounts shall be increased
by the percentage increase in the consumer price index
for all urban consumers (U.S. city average) as esti-
mated by the Secretary for the 12-month period ending
with the midpoint of the year involved. In each of the
fiscal years 1998 through 2002, the increase under this
subparagraph shall be reduced (but not below zero) by
2.0 percentage points.’’
Subsec. (i)(2)(D). Pub. L. 108–173, § 626(b)(2), added sub-
par. (D).
Subsec. (m). Pub. L. 108–173, § 413(b)(1), designated ex-
isting provisions as par. (1), inserted ‘‘in a year’’ after
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
‘‘In the case of physicians’ services furnished’’ and ‘‘as
identified by the Secretary prior to the beginning of
such year’’ after ‘‘as a health professional shortage
area’’, and added pars. (2) to (4).
Subsec. (o)(1)(B). Pub. L. 108–173, § 627(a)(1), sub-
stituted ‘‘no more than the amount of payment appli-
cable under paragraph (2)’’ for ‘‘no more than the limits
established under paragraph (2)’’.
Subsec. (o)(2). Pub. L. 108–173, § 627(a)(2), amended par.
(2) generally, substituting provisions relating to deter-
mination of amount of payments pursuant to section
1395m of this title for provisions specifying dollar
amounts of payments.
Subsec. (t)(1)(B)(iv). Pub. L. 108–173, § 614(a), inserted
before period at end ‘‘and does not include screening
mammography (as defined in section 1395x(jj) of this
title) and diagnostic mammography’’.
Subsec. (t)(2)(H). Pub. L. 108–173, § 621(b)(2), which di-
rected the amendment of par. (2) by adding a new sub-
par. (H) at the end, was executed by adding subpar. (H)
after subpar. (G), to reflect the probable intent of Con-
gress.
Subsec. (t)(3)(C)(ii). Pub. L. 108–173, § 736(b)(2), sub-
stituted ‘‘clause (iv)’’ for ‘‘clause (iii)’’.
Subsec. (t)(5)(E). Pub. L. 108–173, § 621(a)(3), added sub-
par. (E).
Subsec. (t)(6)(D)(i). Pub. L. 108–173, § 621(a)(4), inserted
‘‘(or if the drug or biological is covered under a com-
petitive acquisition contract under section 1395w–3b of
this title, an amount determined by the Secretary
equal to the average price for the drug or biological for
all competitive acquisition areas and year established
under such section as calculated and adjusted by the
Secretary for purposes of this paragraph)’’ after ‘‘under
section 1395u(o) of this title’’.
Subsec. (t)(6)(F). Pub. L. 108–173, § 622, added subpar.
(F).
Subsec. (t)(7)(D)(i). Pub. L. 108–173, § 411(a)(1)(A), (C),
substituted ‘‘certain’’ for ‘‘small’’ in heading and
‘‘2006’’ for ‘‘2004’’ in text.
Pub. L. 108–173, § 411(a)(1)(B), inserted ‘‘or a sole com-
munity
hospital
(as
defined
in
section
1395ww(d)(5)(D)(iii) of this title) located in a rural
area’’ after ‘‘100 beds’’.
Subsec. (t)(9)(B). Pub. L. 108–173, § 621(a)(5), inserted
at end ‘‘In determining adjustments under the pre-
ceding sentence for 2004 and 2005, the Secretary shall
not take into account under this subparagraph or para-
graph (2)(E) any expenditures that would not have been
made but for the application of paragraph (14).’’
Subsec. (t)(13). Pub. L. 108–173, § 411(b)(2), added par.
(13). Former par. (13) redesignated (16).
Subsec. (t)(14), (15). Pub. L. 108–173, § 621(a)(1), added
pars. (14) and (15).
Subsec. (t)(16). Pub. L. 108–173, § 411(b)(1), redesignated
par. (13) as (16).
Subsec. (t)(16)(B). Pub. L. 108–173, § 621(a)(2), added
subpar. (B).
Subsec. (t)(16)(C). Pub. L. 108–173, § 621(b)(1), added
subpar. (C).
Subsec. (u). Pub. L. 108–173, § 413(a), added subsec. (u).
2000—Subsec. (a)(1)(D)(i). Pub. L. 106–554, § 1(a)(6)
[title II, § 201(b)(1)], struck out ‘‘or which are furnished
on an outpatient basis by a critical access hospital’’
after ‘‘on an assignment-related basis’’.
Subsec. (a)(1)(R). Pub. L. 106–554, § 1(a)(6) [title II,
§ 205(b)], substituted ‘‘ambulance services, (i)’’ for ‘‘am-
bulance service,’’ and inserted before comma at end
‘‘and (ii) with respect to ambulance services described
in section 1395m(l)(8) of this title, the amounts paid
shall be the amounts determined under section 1395m(g)
of this title for outpatient critical access hospital serv-
ices’’.
Subsec. (a)(1)(T). Pub. L. 106–554, § 1(a)(6) [title I,
§ 105(c)], added subpar. (T).
Subsec. (a)(1)(U). Pub. L. 106–554, § 1(a)(6) [title II,
§ 223(c)], added subpar. (U).
Subsec. (a)(2)(D)(i). Pub. L. 106–554, § 1(a)(6) [title II,
§ 201(b)(1)], struck out ‘‘or which are furnished on an
outpatient basis by a critical access hospital’’ after ‘‘on
an assignment-related basis’’.
Subsec. (f). Pub. L. 106–554, § 1(a)(6) [title II, § 224(a)],
substituted ‘‘hospitals’’ for ‘‘rural hospitals’’ in intro-
ductory provisions.
Subsec. (g)(4). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 421(a)], substituted ‘‘2000, 2001, and 2002.’’ for ‘‘2000 and
2001.’’
Subsec. (h)(4)(B)(viii). Pub. L. 106–554, § 1(a)(6) [title
V, § 531(a)], inserted before period at end ‘‘(or 100 per-
cent of such median in the case of a clinical diagnostic
laboratory test performed on or after January 1, 2001,
that the Secretary determines is a new test for which
no limitation amount has previously been established
under this subparagraph)’’.
Subsec. (t)(2)(G). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 430(a)], added subpar. (G).
Subsec. (t)(3)(C)(iii). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 401(b)(1)(B)], added cl. (iii). Former cl. (iii) redesig-
nated (iv).
Pub. L. 106–554, § 1(a)(6) [title IV, § 401(a)], substituted
‘‘in each of 2000 and 2002’’ for ‘‘in each of 2000, 2001, and
2002’’.
Subsec. (t)(3)(C)(iv). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 401(b)(1)(A)], redesignated cl. (iii) as (iv).
Subsec. (t)(6)(A)(ii). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 406(a)],
inserted
‘‘or
temperature
monitored
cryoablation’’ after ‘‘device of brachytherapy’’.
Subsec. (t)(6)(A)(iv)(II). Pub. L. 106–554, § 1(a)(6) [title
IV, § 402(b)(1)], substituted ‘‘the cost of the drug or bio-
logical or the average cost of the category of devices’’
for ‘‘the cost of the device, drug, or biological’’.
Subsec. (t)(6)(B). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 402(a)(2)], added subpar. (B) and struck out heading
and text of former subpar. (B). Text read as follows:
‘‘The payment under this paragraph with respect to a
medical device, drug, or biological shall only apply dur-
ing a period of at least 2 years, but not more than 3
years, that begins—
‘‘(i) on the first date this subsection is implemented
in the case of a drug, biological, or device described
in clause (i), (ii), or (iii) of subparagraph (A) and in
the case of a device, drug, or biological described in
subparagraph (A)(iv) and for which payment under
this part is made as an outpatient hospital service be-
fore such first date; or
‘‘(ii) in the case of a device, drug, or biological de-
scribed in subparagraph (A)(iv) not described in
clause (i), on the first date on which payment is made
under this part for the device, drug, or biological as
an outpatient hospital service.’’
Subsec. (t)(6)(C). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 402(a)(2)], added subpar. (C). Former subpar. (C) redes-
ignated (D).
Subsec. (t)(6)(D). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 402(b)(2)], substituted ‘‘subparagraph (E)(iii)’’ for
‘‘subparagraph (D)(iii)’’ in introductory provisions.
Pub. L. 106–554, § 1(a)(6) [title IV, § 402(a)(1)], redesig-
nated subpar. (C) as (D). Former subpar. (D) redesig-
nated (E).
Subsec. (t)(6)(E). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 402(a)(1)], redesignated subpar. (D) as (E).
Subsec. (t)(7)(D)(ii). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 405(a)], in heading, inserted ‘‘and children’s hospitals’’
after ‘‘cancer hospitals’’ and in text, substituted
‘‘clause (iii) or (v) of section 1395ww(d)(1)(B) of this
title’’ for ‘‘section 1395ww(d)(1)(B)(v) of this title’’.
Subsec. (t)(7)(F)(ii)(I). Pub. L. 106–554, § 1(a)(6) [title
IV, § 403(a)], inserted ‘‘(or in the case of a hospital that
did not submit a cost report for such period, during the
first subsequent cost reporting period ending before
2001 for which the hospital submitted a cost report)’’
after ‘‘1996’’.
Subsec. (t)(8)(C). Pub. L. 106–554, § 1(a)(6) [title I,
§ 111(a)(1)], amended heading and text of subpar. (C)
generally. Prior to amendment, text read as follows:
‘‘In no case shall the copayment amount for a proce-
dure performed in a year exceed the amount of the in-
patient hospital deductible established under section
1395e(b) of this title for that year.’’
Subsec. (t)(11). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 405(a)(2)], substituted ‘‘clause (iii) or (v) of section
Page 3069
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
1395ww(d)(1)(B)
of
this
title’’
for
‘‘section
1395ww(d)(1)(B)(v) of this title’’ in introductory provi-
sions.
Subsec. (t)(12)(E). Pub. L. 106–554, § 1(a)(6) [title IV,
§ 402(b)(3)], substituted ‘‘additional payments, the de-
termination and deletion of initial and new categories
(consistent with subparagraphs (B) and (C) of paragraph
(6))’’ for ‘‘additional payments (consistent with para-
graph (6)(B))’’.
1999—Subsec. (a)(1)(D)(i). Pub. L. 106–113, § 1000(a)(6)
[title IV, § 403(e)(1)], inserted ‘‘or which are furnished
on an outpatient basis by a critical access hospital’’
after ‘‘on an assignment-related basis’’.
Subsec. (a)(1)(O). Pub. L. 106–113, § 1000(a)(6) [title III,
§ 321(k)(2)], substituted a comma for the semicolon at
end.
Subsec. (a)(2)(D)(i). Pub. L. 106–113, § 1000(a)(6) [title
IV, § 403(e)(1)], inserted ‘‘or which are furnished on an
outpatient basis by a critical access hospital’’ after ‘‘on
an assignment-related basis’’.
Subsec. (g)(1), (3). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 221(a)(1)(A)], substituted ‘‘Subject to paragraph (4), in
the case’’ for ‘‘In the case’’.
Subsec. (g)(4). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 221(a)(1)(B)], added par. (4).
Subsec. (h)(5)(A)(iii). Pub. L. 106–113, § 1000(a)(6) [title
III, § 321(g)(2)], substituted ‘‘, critical access hospital,
or skilled nursing facility,’’ for ‘‘or critical access hos-
pital,’’ and inserted ‘‘or skilled nursing facility’’ before
period at end.
Subsec. (h)(7). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 224(a)], added par. (7).
Subsec. (l)(4)(A)(i)(VII). Pub. L. 106–113, § 1000(a)(6)
[title II, § 211(a)(3)(B)], substituted ‘‘1395w–4(d) of this
title’’ for ‘‘1395w–4(d)(3) of this title’’.
Subsec. (t)(1)(B)(ii). Pub. L. 106–113, § 1000(a)(6) [title
II, § 201(e)(1)(A)], substituted ‘‘clause (iv)’’ for ‘‘clause
(iii)’’ and directed the striking out of ‘‘but’’ which was
executed by striking out ‘‘but’’ after semicolon at end
to reflect the probable intent of Congress.
Subsec. (t)(1)(B)(iii), (iv). Pub. L. 106–113, § 1000(a)(6)
[title II, § 201(e)(1)(B)], added cl. (iii) and redesignated
former cl. (iii) as (iv).
Subsec. (t)(2). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(g)], inserted concluding provisions.
Subsec. (t)(2)(B). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(e)(1)(C)], inserted ‘‘and so that an implantable
item is classified to the group that includes the service
to which the item relates’’ before semicolon at end.
Subsec. (t)(2)(C). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(f)], inserted ‘‘(or, at the election of the Secretary,
mean)’’ after ‘‘median’’.
Subsec. (t)(2)(E). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(c)], substituted ‘‘, in a budget neutral manner,
outlier adjustments under paragraph (5) and transi-
tional pass-through payments under paragraph (6) and
other adjustments as determined to be necessary to en-
sure equitable payments, such as’’ for ‘‘other adjust-
ments, in a budget neutral manner, as determined to be
necessary to ensure equitable payments, such as outlier
adjustments or’’.
Subsec. (t)(4). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202(a)(1)], inserted ‘‘, subject to paragraph (7),’’ after
‘‘is determined’’ in introductory provisions.
Subsec. (t)(4)(C). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 204(b)], inserted ‘‘, plus the amount of any reduction
in the copayment amount attributable to paragraph
(8)(C)’’ before period at end.
Subsec. (t)(5). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(a)(2)], added par. (5). Former par. (5) redesignated
(7).
Subsec. (t)(6). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(b)], added par. (6). Former par. (6) redesignated (8).
Subsec. (t)(7). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202(a)(3)], added par. (7). Former par. (7) redesignated
(8).
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(a)(1)], redes-
ignated par. (5) as (7). Former par. (7) redesignated (9).
Subsec. (t)(7)(D). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(i)], added subpar. (D).
Subsec. (t)(8). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202(a)(2)], redesignated par. (7) as (8). Former par. (8)
redesignated (9).
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(a)(1)], redes-
ignated par. (6) as (8). Former par. (8) redesignated (10).
Subsec. (t)(8)(A). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 204(a)(1)], substituted ‘‘subparagraphs (B) and (C)’’ for
‘‘subparagraph (B)’’.
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(h)(1)(B)], in-
serted at end ‘‘The Secretary shall consult with an ex-
pert outside advisory panel composed of an appropriate
selection of representatives of providers to review (and
advise the Secretary concerning) the clinical integrity
of the groups and weights. Such panel may use data
collected or developed by entities and organizations
(other than the Department of Health and Human Serv-
ices) in conducting such review.’’
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(h)(1)(A)], sub-
stituted ‘‘shall review not less often than annually’’ for
‘‘may periodically review’’.
Subsec. (t)(8)(C) to (E). Pub. L. 106–113, § 1000(a)(6)
[title II, § 204(a)(2), (3)], added subpar. (C) and redesig-
nated former subpars. (C) and (D) as (D) and (E), respec-
tively.
Subsec. (t)(9). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202(a)(2)], redesignated par. (8) as (9). Former par. (9)
redesignated (10).
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(j)], sub-
stituted ‘‘section 1395x(v)(1)(U) of this title’’ for ‘‘the
matter in subsection (a)(1) of this section preceding
subparagraph (A)’’.
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(a)(1)], redes-
ignated par. (7) as (9). Former par. (9) redesignated (11).
Subsec. (t)(10). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202(a)(2)], redesignated par. (9) as (10). Former par. (10)
redesignated (11).
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(a)(1)], redes-
ignated par. (8) as (10).
Subsec. (t)(11). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202(a)(2)], redesignated par. (10) as (11). Former par.
(11) redesignated (12).
Pub. L. 106–113, § 1000(a)(6) [title II, § 201(a)(1)], redes-
ignated par. (9) as (11).
Subsec. (t)(11)(E). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 201(d)], added subpar. (E).
Subsec. (t)(12). Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202(a)(2)], redesignated par. (11) as (12).
Subsec. (t)(13). Pub. L. 106–113, § 1000(a)(6) [title IV,
§ 401(b)(1)], added par. (13).
1997—Subsec. (a)(1)(A). Pub. L. 105–33, § 4002(j)(1)(A),
inserted ‘‘(and either is sponsored by a union or em-
ployer, or does not provide, or arrange for the provision
of, any inpatient hospital services)’’ after ‘‘prepayment
basis’’.
Subsec. (a)(1)(D). Pub. L. 105–33, § 4104(c), inserted ‘‘or
section 1395m(d)(1) of this title’’ after ‘‘subsection
(h)(1)’’.
Subsec. (a)(1)(O). Pub. L. 105–33, § 4512(b)(1), sub-
stituted ‘‘section 1395x(s)(2)(K) of this title’’ for ‘‘sec-
tion 1395x(s)(2)(K)(ii) of this title’’ and ‘‘services fur-
nished by physician assistants, nurse practitioners, or
clinic nurse specialists’’ for ‘‘nurse practitioner or clin-
ical nurse specialist services’’.
Pub. L. 105–33, § 4511(b)(1), amended subpar. (O) gen-
erally. Prior to amendment, subpar. (O) read as follows:
‘‘with
respect
to
services
described
in
section
1395x(s)(2)(K)(iii) of this title (relating to nurse practi-
tioner or clinical nurse specialist services provided in a
rural area), the amounts paid shall be 80 percent of the
lesser of the actual charge or the prevailing charge
that would be recognized (or, for services furnished on
or after January 1, 1992, the fee schedule amount pro-
vided under section 1395w–4 of this title) if the services
had been performed by a physician (subject to the limi-
tation described in subsection (r)(2) of this section),’’.
Subsec. (a)(1)(Q). Pub. L. 105–33, § 4315(b), added sub-
par. (Q).
Subsec. (a)(1)(R). Pub. L. 105–33, § 4531(b)(1), added
subpar. (R).
Subsec. (a)(1)(S). Pub. L. 105–33, § 4556(b), added sub-
par. (S).
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
Subsec. (a)(2). Pub. L. 105–33, § 4541(a)(1)(A), inserted
‘‘(C),’’ before ‘‘(D)’’ in introductory provisions.
Subsec. (a)(2)(A). Pub. L. 105–33, § 4603(c)(2)(A)(i),
amended subpar. (A) generally. Prior to amendment,
subpar. (A) read as follows: ‘‘with respect to home
health services (other than a covered osteoporosis drug
(as defined in section 1395x(kk) of this title)) and to
items and services described in section 1395x(s)(10)(A) of
this title, the lesser of—
‘‘(i) the reasonable cost of such services, as deter-
mined under section 1395x(v) of this title, or
‘‘(ii) the customary charges with respect to such
services,
or, if such services are furnished by a public provider of
services, or by another provider which demonstrates to
the satisfaction of the Secretary that a significant por-
tion of its patients are low-income (and requests that
payment be made under this provision), free of charge
or at nominal charges to the public, the amount deter-
mined in accordance with section 1395f(b)(2) of this
title;’’.
Subsec. (a)(2)(B). Pub. L. 105–33, § 4432(b)(5)(C), in-
serted ‘‘or section 1395yy(e)(9) of this title’’ after
‘‘1395ww of this title’’ in introductory provisions.
Pub. L. 105–33, § 4523(d)(3), inserted ‘‘furnished before
January 1, 1999,’’ after ‘‘(i)’’ in cl. (i), inserted ‘‘before
January 1, 1999,’’ after ‘‘furnished’’ in cl. (ii), added cl.
(iii), and redesignated former cl. (iii) as (iv).
Subsec. (a)(2)(D). Pub. L. 105–33, § 4104(c)(1), inserted
‘‘or section 1395m(d)(1) of this title’’ after ‘‘subsection
(h)(1)’’.
Subsec. (a)(2)(E). Pub. L. 105–33, § 4523(d)(2)(B), in-
serted ‘‘or, for services or procedures performed on or
after January 1, 1999, subsection (t)’’ before semicolon
at end.
Subsec. (a)(2)(G). Pub. L. 105–33, § 4603(c)(2)(A)(ii)–(iv),
added subpar. (G).
Subsec. (a)(3). Pub. L. 105–33, § 4541(a)(1)(B), sub-
stituted ‘‘section 1395k(a)(2)(D) of this title’’ for ‘‘sub-
paragraphs (D) and (E) of section 1395k(a)(2) of this
title’’.
Subsec. (a)(4). Pub. L. 105–33, § 4523(d)(1)(B), inserted
‘‘or subsection (t)’’ before semicolon at end.
Subsec. (a)(6). Pub. L. 105–33, § 4201(c)(1), substituted
‘‘critical access’’ for ‘‘rural primary care’’.
Subsec. (a)(8), (9). Pub. L. 105–33, § 4541(a)(1)(C)–(E),
added pars. (8) and (9).
Subsec. (b)(5). Pub. L. 105–33, § 4101(b), added par. (5)
at end of first sentence.
Subsec. (b)(6). Pub. L. 105–33, § 4102(b), added par. (6)
at end of first sentence.
Subsec. (f). Pub. L. 105–33, § 4205(a)(1)(A), substituted
‘‘rural health clinics (other than such clinics in rural
hospitals with less than 50 beds)’’ for ‘‘independent
rural health clinics’’ in introductory provisions.
Subsec. (f)(1). Pub. L. 105–33, § 4205(a)(2), inserted ‘‘per
visit’’ after ‘‘$46’’.
Subsec. (g). Pub. L. 105–33, § 4541(d)(1), substituted
‘‘the amount specified in paragraph (2) for the year’’ for
‘‘$900’’ in two places, redesignated first sentence as par.
(1) and last sentence as par. (3), and added par. (2).
Pub. L. 105–33, § 4541(c), (d)(1)(A), substituted, in first
sentence, ‘‘physical therapy services of the type de-
scribed in section 1395x(p) of this title, but not de-
scribed in subsection (a)(8)(B) of this section, and phys-
ical therapy services of such type which are furnished
by a physician or as incident to physicians’ services’’
for ‘‘services described in the second sentence of sec-
tion 1395x(p) of this title’’, and substituted, in last sen-
tence, ‘‘occupational therapy services (of the type that
are described in section 1395x(p) of this title (but not
described in subsection (a)(8)(B) of this section)
through the operation of section 1395x(g) of this title
and of such type which are furnished by a physician or
as incident to physicians’ services)’’ for ‘‘outpatient oc-
cupational therapy services which are described in the
second sentence of section 1395x(p) of this title through
the operation of section 1395x(g) of this title’’.
Subsec. (h)(1)(A). Pub. L. 105–33, § 4104(c)(2), sub-
stituted ‘‘Subject to section 1395m(d)(1) of this title,
the Secretary’’ for ‘‘The Secretary’’.
Pub. L. 105–33, § 4103(b), inserted ‘‘(including prostate
cancer screening tests under section 1395x(oo) of this
title consisting of prostate-specific antigen blood
tests)’’ after ‘‘laboratory tests’’.
Subsec. (h)(2)(A)(ii)(IV). Pub. L. 105–33, § 4553(a), in-
serted ‘‘and 1998 through 2002’’ after ‘‘1995’’.
Subsec. (h)(4)(B)(vii). Pub. L. 105–33, § 4553(b)(2)(A), in-
serted ‘‘and before January 1, 1998,’’ after ‘‘December
31, 1995,’’.
Subsec. (h)(4)(B)(viii). Pub. L. 105–33, § 4553(b)(1),
(2)(B), (3), added cl. (viii).
Subsec. (h)(5)(A)(iii). Pub. L. 105–33, § 4201(c)(1), sub-
stituted ‘‘critical access’’ for ‘‘rural primary care’’.
Subsec. (i)(1)(A). Pub. L. 105–33, § 4201(c)(1), sub-
stituted ‘‘critical access’’ for ‘‘rural primary care’’.
Subsec. (i)(2)(C). Pub. L. 105–33, § 4555, inserted at end
‘‘In each of the fiscal years 1998 through 2002, the in-
crease under this subparagraph shall be reduced (but
not below zero) by 2.0 percentage points.’’
Subsec. (i)(3)(A). Pub. L. 105–33, § 4523(d)(1)(A)(i), in-
serted ‘‘before January 1, 1999,’’ after ‘‘furnished’’ and
struck out ‘‘in a cost reporting period’’ after ‘‘para-
graph (1)(A)’’.
Pub. L. 105–33, § 4201(c)(1), substituted ‘‘critical ac-
cess’’ for ‘‘rural primary care’’.
Subsec. (i)(3)(B)(i)(II). Pub. L. 105–33, § 4521(a), struck
out ‘‘of 80 percent’’ before ‘‘of the standard overhead
amount’’ and inserted before period at end ‘‘, less the
amount a provider may charge as described in clause
(ii) of section 1395cc(a)(2)(A) of this title’’.
Subsec. (l)(5). Pub. L. 105–33, § 4201(c)(1), substituted
‘‘critical access’’ for ‘‘rural primary care’’ wherever ap-
pearing.
Subsec. (n)(1)(A). Pub. L. 105–33, § 4523(d)(2)(A), in-
serted ‘‘and before January 1, 1999,’’ after ‘‘October 1,
1988,’’ and after ‘‘October 1, 1989,’’.
Subsec. (n)(1)(B)(i)(II). Pub. L. 105–33, § 4521(b), struck
out ‘‘of 80 percent’’ before ‘‘of the prevailing charge’’
and inserted before period at end ‘‘, less the amount a
provider may charge as described in clause (ii) of sec-
tion 1395cc(a)(2)(A) of this title’’.
Subsec. (r)(1). Pub. L. 105–33, § 4511(b)(2)(A), sub-
stituted ‘‘section 1395x(s)(2)(K)(ii) of this title (relating
to nurse practitioner or clinical nurse specialist serv-
ices)’’ for ‘‘section 1395x(s)(2)(K)(iii) of this title (relat-
ing to nurse practitioner or clinical nurse specialist
services provided in a rural area)’’.
Pub. L. 105–33, § 4201(c)(1), substituted ‘‘critical ac-
cess’’ for ‘‘rural primary care’’.
Subsec. (r)(2). Pub. L. 105–33, § 4511(b)(2)(B), (D), redes-
ignated par. (3) as (2) and struck out former par. (2)
which read as follows:
‘‘(2)(A) For purposes of subsection (a)(1)(O) of this
section, the prevailing charge for services described in
section 1395x(s)(2)(K)(iii) of this title may not exceed
the applicable percentage (as defined in subparagraph
(B)) of the prevailing charge (or, for services furnished
on or after January 1, 1992, the fee schedule amount
provided under section 1395w–4 of this title) determined
for such services performed by physicians who are not
specialists.
‘‘(B) In subparagraph (A), the term ‘applicable per-
centage’ means—
‘‘(i) 75 percent in the case of services performed in
a hospital, and
‘‘(ii) 85 percent in the case of other services.’’
Subsec. (r)(3). Pub. L. 105–33, § 4511(b)(2)(C), (D), redes-
ignated par. (3) as (2) and substituted ‘‘section
1395x(s)(2)(K)(ii)
of
this
title’’
for
‘‘section
1395x(s)(2)(K)(iii) of this title’’.
Pub. L. 105–33, § 4201(c)(1), substituted ‘‘critical ac-
cess’’ for ‘‘rural primary care’’.
Subsec. (t). Pub. L. 105–33, § 4523(a), added subsec. (t).
1994—Subsec.
(a)(1)(D)(i).
Pub.
L.
103–432,
§ 156(a)(2)(B)(i), struck out ‘‘, or for tests furnished in
connection with obtaining a second opinion required
under section 1320c–13(c)(2) of this title (or a third opin-
ion, if the second opinion was in disagreement with the
first opinion)’’ after ‘‘assignment-related basis’’.
Subsec. (a)(1)(G). Pub. L. 103–432, § 156(a)(2)(B)(ii),
struck out subpar. (G) which read as follows: ‘‘with re-
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
spect to items and services (other than clinical diag-
nostic laboratory tests) furnished in connection with
obtaining a second opinion required under section
1320c–13(c)(2) of this title (or a third opinion, if the sec-
ond opinion was in disagreement with the first opin-
ion), the amounts paid shall be 100 percent of the rea-
sonable charges for such items and services,’’.
Subsec. (a)(2)(A). Pub. L. 103–432, § 156(a)(2)(B)(iii),
struck out ‘‘, to items and services (other than clinical
diagnostic laboratory tests) furnished in connection
with obtaining a second opinion required under section
1320c–13(c)(2) of this title (or a third opinion, if the sec-
ond opinion was in disagreement with the first opin-
ion),’’ before ‘‘and to items and services’’ in introduc-
tory provisions.
Pub. L. 103–432, § 147(f)(6)(C)(i), substituted ‘‘health
services (other than a covered osteoporosis drug (as de-
fined in section 1395x(kk) of this title))’’ for ‘‘health
services’’ in introductory provisions.
Subsec. (a)(2)(D)(i). Pub. L. 103–432, § 156(a)(2)(B)(iv),
substituted ‘‘assignment-related basis or’’ for ‘‘assign-
ment-related basis,’’ and struck out ‘‘, or for tests fur-
nished in connection with obtaining a second opinion
required under section 1320c–13(c)(2) of this title (or a
third opinion, if the second opinion was in disagree-
ment with the first opinion)’’ after ‘‘section 1395cc of
this title’’.
Subsec. (a)(2)(F). Pub. L. 103–432, § 147(f)(6)(C)(ii)–(iv),
added subpar. (F).
Subsec. (a)(3). Pub. L. 103–432, § 156(a)(2)(B)(v), struck
out ‘‘and for items and services furnished in connection
with obtaining a second opinion required under section
1320c–13(c)(2) of this title, or a third opinion, if the sec-
ond opinion was in disagreement with the first opin-
ion)’’ after ‘‘section 1395x(s)(10)(A) of this title’’.
Subsec. (b)(2). Pub. L. 103–432, § 147(f)(6)(D), inserted
‘‘(other than a covered osteoporosis drug (as defined in
section 1395x(kk) of this title))’’ after ‘‘services’’.
Subsec. (b)(4), (5). Pub. L. 103–432, § 156(a)(2)(B)(vi), re-
designated par. (5) as (4) and struck out former par. (4)
which read as follows: ‘‘such deductible shall not apply
with respect to items and services furnished in connec-
tion with obtaining a second opinion required under
section 1320c–13(c)(2) of this title (or a third opinion, if
the second opinion was in disagreement with the first
opinion),’’.
Subsec. (h)(5)(D). Pub. L. 103–432, § 123(e), substituted
‘‘paragraph (2) of section 1395u(j)’’ for ‘‘paragraphs (2)
and (3) of section 1395u(j)’’ and inserted at end ‘‘Para-
graph (4) of such section shall apply in this subpara-
graph in the same manner as such paragraph applies to
such section.’’
Subsec. (i)(1). Pub. L. 103–432, § 141(a)(3), inserted be-
fore period at end of last sentence ‘‘, in consultation
with appropriate trade and professional organizations’’.
Subsec. (i)(2)(A). Pub. L. 103–432, § 141(a)(2)(A), struck
out ‘‘and may be adjusted by the Secretary, when ap-
propriate,’’ after ‘‘annually thereafter’’ in last sen-
tence.
Subsec. (i)(2)(A)(i). Pub. L. 103–432, § 141(a)(1), inserted
before comma at end ‘‘, as determined in accordance
with a survey (based upon a representative sample of
procedures and facilities) taken not later than January
1, 1995, and every 5 years thereafter, of the actual au-
dited costs incurred by such centers in providing such
services’’.
Subsec. (i)(2)(B). Pub. L. 103–432, § 141(a)(2)(A), struck
out ‘‘and may be adjusted by the Secretary, when ap-
propriate,’’ after ‘‘annually thereafter’’ in last sen-
tence.
Subsec. (i)(2)(C). Pub. L. 103–432, § 141(a)(2)(B), added
subpar. (C).
Subsec. (i)(3)(B)(ii). Pub. L. 103–432, § 141(c)(1), in
subcls. (I) and (II) substituted ‘‘for portions of cost re-
porting periods’’ for ‘‘for reporting periods’’ and ‘‘and
ending on or before December 31, 1990’’ for ‘‘and on or
before December 31, 1990’’.
Subsec. (l)(5)(B), (C). Pub. L. 103–432, § 123(b)(2)(A)(i),
redesignated subpar. (C) as (B) and struck out former
subpar. (B) which read as follows:
‘‘(B)(i) Payment for the services of a certified reg-
istered nurse anesthetist under this part may be made
only on an assignment-related basis, and any such as-
signment agreed to by a certified registered nurse anes-
thetist shall be binding upon any other person pre-
senting a claim or request for payment for such serv-
ices.
‘‘(ii) Except for deductible and coinsurance amounts
applicable under this section, any person who know-
ingly and willfully presents, or causes to be presented,
to an individual enrolled under this part a bill or re-
quest for payment for services of a certified registered
nurse anesthetist for which payment may be made
under this part only on an assignment-related basis is
subject to a civil money penalty of not to exceed $2,000
for each such bill or request. The provisions of section
1320a–7a of this title (other than subsections (a) and (b))
shall apply to a civil money penalty under the previous
sentence in the same manner as such provisions apply
to a penalty or proceeding under section 1320a–7a(a) of
this title.’’
Subsec. (n)(1)(B)(i)(II). Pub. L. 103–432, § 147(d)(2), sub-
stituted ‘‘April 1, 1989’’ for ‘‘January 1, 1989’’.
Pub. L. 103–432, § 147(d)(1), inserted ‘‘and for services
described in subsection (a)(2)(E)(ii) furnished on or
after January 1, 1992’’ after ‘‘January 1, 1989’’ and ‘‘(or,
in the case of services furnished on or after January 1,
1992, under section 1395w–4 of this title)’’ before period
at end.
Subsec. (p). Pub. L. 103–432, § 123(b)(2)(A)(ii), struck
out subsec. (p) which read as follows: ‘‘In the case of
certified nurse-midwife services for which payment
may be made under this part only pursuant to section
1395x(s)(2)(L) of this title, in the case of qualified psy-
chologists services for which payment may be made
under this part only pursuant to section 1395x(s)(2)(M)
of this title, and in the case of clinical social worker
services for which payment may be made under this
part only pursuant to section 1395x(s)(2)(N) of this title,
payment may only be made under this part for such
services on an assignment-related basis. Except for de-
ductible and coinsurance amounts applicable under this
section, whoever knowingly and willfully presents, or
causes to be presented, to an individual enrolled under
this part a bill or request for payment for services de-
scribed in the previous sentence, is subject to a civil
money penalty of not to exceed $2,000 for each such bill
or request. The provisions of section 1320a–7a of this
title (other than subsections (a) and (b)) shall apply to
a civil money penalty under the previous sentence in
the same manner as such provisions apply to a penalty
or proceeding under section 1320a–7a(a) of this title.’’
Subsec. (q)(1). Pub. L. 103–432, § 147(a), substituted
‘‘unique physician identification number’’ for ‘‘provider
number’’ and struck out ‘‘and indicate whether or not
the referring physician is an interested investor (within
the meaning of section 1395nn(h)(5) of this title)’’ after
‘‘for the referring physician’’.
Subsec. (r). Pub. L. 103–432, § 160(d)(1), redesignated
subsec. (r), relating to other prepaid organizations, as
(s).
Subsec. (r)(1). Pub. L. 103–432, § 147(e)(2), substituted
‘‘or ambulatory’’ for ‘‘ambulatory’’ in two places and
‘‘center’’ for ‘‘center,’’ before ‘‘with which the nurse’’.
Subsec. (r)(2)(A). Pub. L. 103–432, § 147(e)(3), sub-
stituted ‘‘subsection (a)(1)(O) of this section’’ for ‘‘sub-
section (a)(1)(M) of this section’’.
Subsec. (r)(3), (4). Pub. L. 103–432, § 123(b)(2)(A)(iii), re-
designated par. (4) as (3) and struck out former par. (3)
which read as follows:
‘‘(3)(A) Payment under this part for services de-
scribed in section 1395x(s)(2)(K)(iii) of this title may be
made only on an assignment-related basis, and any
such assignment agreed to by a nurse practitioner or
clinical nurse specialist shall be binding upon any
other person presenting a claim or request for payment
for such services.
‘‘(B) Except for deductible and coinsurance amounts
applicable under this section, any person who know-
ingly and willfully presents, or causes to be presented,
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
to an individual enrolled under this part a bill or re-
quest for payment for services described in section
1395x(s)(2)(K)(iii) of this title in violation of subpara-
graph (A) is subject to a civil money penalty of not to
exceed $2,000 for each such bill or request. The provi-
sions of section 1320a–7a of this title (other than sub-
sections (a) and (b)) shall apply to a civil money pen-
alty under the previous sentence in the same manner as
such provisions apply to a penalty or proceeding under
section 1320a–7a(a) of this title.’’
Subsec. (s). Pub. L. 103–432, § 160(d)(1), redesignated
subsec. (r), relating to other prepaid organizations, as
(s).
1993—Subsec. (a)(1). Pub. L. 103–66, § 13544(b)(2), redes-
ignated subpar. (M) relating to nurse practitioner and
clinical nurse specialist services as (O), inserted comma
before ‘‘(O)’’, transferred and inserted such subpar. to
appear before semicolon at end, struck out ‘‘and’’ be-
fore ‘‘(N)’’, and inserted ‘‘, and’’ and subpar. (P) fol-
lowing subpar. (O) and before semicolon at end.
Subsec. (g). Pub. L. 103–66, § 13555(a), substituted
‘‘$900’’ for ‘‘$750’’ in two places.
Subsec. (h)(2)(A)(ii)(IV). Pub. L. 103–66, § 13551(a),
added subcl. (IV).
Subsec. (h)(4)(B)(iv) to (vii). Pub. L. 103–66, § 13551(b),
added cls. (iv) to (vii), and struck out former cl. (iv)
which read as follows: ‘‘after December 31, 1990, is equal
to 88 percent of the median of all the fee schedules es-
tablished for that test for that laboratory setting under
paragraph (1).’’
Subsec. (i)(3)(B)(ii). Pub. L. 103–66, § 13532(a)(1), in in-
troductory provisions substituted ‘‘paragraph (4)’’ for
‘‘the last sentence of this clause’’ and struck out con-
cluding provisions which read as follows: ‘‘In the case
of a hospital that makes application to the Secretary
and demonstrates that it specializes in eye services or
eye and ear services (as determined by the Secretary),
receives more than 30 percent of its total revenues from
outpatient services and was an eye specialty hospital
or an eye and ear specialty hospital on October 1, 1987,
the cost proportion and ASC proportion in effect under
subclauses (I) and (II) for cost reporting periods begin-
ning in fiscal year 1988 shall remain in effect for cost
reporting periods beginning on or after October 1, 1988,
and before January 1, 1995.’’
Subsec. (i)(4). Pub. L. 103–66, § 13532(a)(2), added par.
(4).
Subsec. (l)(4)(B)(i). Pub. L. 103–66, § 13516(b)(1), in-
serted ‘‘and before January 1, 1994,’’ after ‘‘1991,’’.
Subsec. (l)(4)(B)(ii). Pub. L. 103–66, § 13516(b)(2), in-
serted ‘‘and’’ at end of subcl. (II), substituted a period
for the comma at end of subcl. (III), and struck out
subcls. (IV) to (VII) which read as follows:
‘‘(IV) for services furnished in 1994, $11.25,
‘‘(V) for services furnished in 1995, $11.50,
‘‘(VI) for services furnished in 1996, $11.70, and
‘‘(VII) for services furnished in calendar years after
1997, the previous year’s conversion factor increased by
the update determined under section 1395w–4(d)(3) of
this title for physician anesthesia services for that
year.’’
Subsec. (l)(4)(B)(iii). Pub. L. 103–66, § 13516(b)(3), added
cl. (iii).
1990—Subsec. (a)(1)(H). Pub. L. 101–508, § 4118(f)(2)(D),
struck out ‘‘, as the case may be’’ after ‘‘section
1395w–4 of this title’’.
Subsec. (a)(1)(J). Pub. L. 101–508, § 4104(b)(1), struck
out
‘‘or
physician
pathology
services’’
after
‘‘1395m(b)(6) of this title)’’ and ‘‘or section 1395m(f) of
this title, respectively’’ after ‘‘1395m(b) of this title’’.
Subsec. (a)(1)(K). Pub. L. 101–508, § 4155(b)(2)(A), which
directed amendment of subpar. (K) by striking ‘‘and’’ at
the end, could not be executed because of prior amend-
ment by Pub. L. 101–508, § 4153(a)(2)(B)(i), see below.
Pub. L. 101–508, § 4153(a)(2)(B)(i), struck out ‘‘and’’
after ‘‘by a physician),’’.
Subsec. (a)(1)(L). Pub. L. 101–508, § 4153(a)(2)(B)(ii),
substituted ‘‘subparagraph,’’ for ‘‘subparagraph and’’ at
end.
Subsec. (a)(1)(M). Pub. L. 101–508, § 4155(b)(2)(B), added
subpar. (M) relating to nurse practitioner and clinical
nurse specialist services.
Pub. L. 101–508, § 4153(a)(2)(B)(ii), added subpar. (M) re-
lating to prosthetic devices and orthotics.
Subsec. (a)(2). Pub. L. 101–508, § 4153(a)(2)(C)(i), sub-
stituted ‘‘(H), and (I)’’ for ‘‘and (H)’’ in introductory
provisions.
Subsec. (a)(2)(E)(i). Pub. L. 101–508, § 4163(d)(1), in-
serted ‘‘, but excluding screening mammography’’ after
‘‘imaging services’’.
Subsec. (a)(7). Pub. L. 101–508, § 4153(a)(2)(C)(ii)–(iv),
added par. (7).
Subsec. (b). Pub. L. 101–508, § 4302, inserted ‘‘for cal-
endar years before 1991 and $100 for 1991 and subsequent
years’’ after ‘‘$75’’.
Subsec. (b)(5). Pub. L. 101–508, § 4161(a)(3)(B), added
par. (5) at end of first sentence.
Subsec. (h)(2)(A)(ii). Pub. L. 101–508, § 4154(a)(1), sub-
stituted ‘‘clause (i)’’ for ‘‘any other provision of this
subsection’’ in introductory provisions.
Subsec.
(h)(2)(A)(ii)(III).
Pub.
L.
101–508,
§ 4154(a)(2)–(4), added subcl. (III).
Subsec. (h)(4)(B). Pub. L. 101–508, § 4154(b)(1)(B),
struck out ‘‘and’’ at end of cl. (ii), inserted ‘‘and before
January 1, 1991,’’ after ‘‘1989,’’ in cl. (iii), substituted
‘‘, and’’ for period at end of cl. (iii), and added cl. (iv).
Subsec. (h)(5)(A)(ii)(II). Pub. L. 101–508, § 4154(e)(1)(A),
substituted ‘‘wholly owned by’’ for ‘‘a wholly-owned
subsidiary of’’.
Subsec. (h)(5)(A)(ii)(III). Pub. L. 101–508, § 4154(e)(1)(C),
substituted ‘‘receives requests for testing during the
year in which the test is performed’’ for ‘‘submits bills
or requests for payment in any year’’.
Pub. L. 101–508, § 4154(e)(1)(B), which directed substi-
tution of ‘‘laboratory (but not including a laboratory
described in subclause (II)),’’ for ‘‘laboratory’’, was exe-
cuted by making the substitution for ‘‘laboratory’’ the
second time appearing to reflect the probable intent of
Congress.
Subsec. (h)(5)(A)(iii). Pub. L. 101–508, § 4008(m)(2)(C),
which directed technical correction to Pub. L. 101–239,
§ 6003(g)(3)(C)(vii)(I), was executed by making technical
correction to Pub. L. 101–239, § 6003(g)(3)(D)(vii)(I), re-
sulting in no change in text. See 1989 Amendment note
below.
Subsec. (h)(5)(C). Pub. L. 101–508, § 4154(c)(1)(A), sub-
stituted ‘‘test, including a test performed in a physi-
cian’s office but excluding a test performed by a rural
health clinic’’ for ‘‘test performed by a laboratory
other than a rural health clinic’’.
Subsec. (h)(5)(D). Pub. L. 101–508, § 4154(c)(1)(B), sub-
stituted ‘‘test, including a test performed in a physi-
cian’s office but excluding a test performed by a rural
health clinic,’’ for ‘‘test performed by a laboratory,
other than a rural health clinic’’.
Subsec. (i)(3)(B)(ii). Pub. L. 101–508, § 4151(c)(1)(B),
substituted ‘‘on or after October 1, 1988, and before Jan-
uary 1, 1995’’ for ‘‘in fiscal year 1989 or fiscal year 1990’’
in last sentence.
Subsec. (i)(3)(B)(ii)(I). Pub. L. 101–508, § 4151(c)(1)(A)(i),
substituted ‘‘50 percent for reporting periods beginning
on or after October 1, 1988, and on or before December
31, 1990, and 42 percent for portions of cost reporting pe-
riods beginning on or after January 1, 1991’’ for ‘‘and 50
percent for other cost reporting periods’’.
Subsec.
(i)(3)(B)(ii)(II).
Pub.
L.
101–508,
§ 4151(c)(1)(A)(ii), substituted ‘‘50 percent for reporting
periods beginning on or after October 1, 1988, and on or
before December 31, 1990, and 58 percent for portions of
cost reporting periods beginning on or after January 1,
1991’’ for ‘‘and 50 percent for other cost reporting peri-
ods’’.
Subsec. (l)(1). Pub. L. 101–508, § 4160(1), designated ex-
isting provisions as subpar. (A) and added subpars. (B)
and (C).
Subsec. (l)(2). Pub. L. 101–508, § 4160(2), struck out at
end ‘‘The fee schedule shall be adjusted annually (to be-
come effective on January 1 of each calendar year) by
the percentage increase in the MEI (as defined in sec-
tion 1395u(i)(3) of this title) for that year.’’
Subsec. (l)(4). Pub. L. 101–508, § 4160(3), added par. (4)
and struck out former par. (4) which read as follows:
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
‘‘In establishing the fee schedule under paragraph (1),
the Secretary may utilize a system of time units, a sys-
tem of base and time units, or any appropriate method-
ology. The Secretary may establish a nationwide fee
schedule or adjust the fee schedule for geographic areas
(as the Secretary may determine to be appropriate).’’
Subsec. (m). Pub. L. 101–597 substituted ‘‘health pro-
fessional shortage area’’ for ‘‘health manpower short-
age area’’.
Subsec. (n)(1)(B)(ii)(I). Pub. L. 101–508, § 4151(c)(2), in-
serted before period at end ‘‘, and such term means 42
percent in the case of outpatient radiology services for
portions of cost reporting periods beginning on or after
January 1, 1991’’.
Subsec. (r). Pub. L. 101–508, § 4206(b)(2), added subsec.
(r) relating to other prepaid organizations.
Pub. L. 101–508, § 4155(b)(3), added subsec. (r) relating
to cap on prevailing charge and billing on assignment-
related basis.
1989—Subsec. (a). Pub. L. 101–234, § 202(a), repealed
Pub. L. 100–360, § 212(c)(2), and provided that the provi-
sions of law amended or repealed by such section are
restored or revised as if such section had not been en-
acted, see 1988 Amendment note below.
Pub. L. 101–234, § 201(a), repealed Pub. L. 100–360,
§ 205(c)(3), and provided that the provisions of law
amended or repealed by such section are restored or re-
vived as if such section had not been enacted, see 1988
Amendment note below.
Subsec. (a)(1)(F). Pub. L. 101–239, § 6113(b)(3)(A), added
subpar. (F).
Subsec. (a)(1)(H). Pub. L. 101–239, § 6102(e)(5), inserted
‘‘(or, for services furnished on or after January 1, 1992,
the fee schedule amount provided under section 1395w–4
of this title, as the case may be)’’ after ‘‘prevailing
charge that would be recognized’’.
Subsec. (a)(1)(J). Pub. L. 101–239, § 6102(f)(2), inserted
‘‘or physician pathology services’’ after ‘‘1395m(b)(6) of
this title)’’ and ‘‘or section 1395m(f) of this title, respec-
tively’’ after ‘‘1395m(b) of this title’’.
Pub. L. 101–239, § 6102(e)(6)(A), inserted ‘‘subject to
section 1395w–4 of this title,’’ before ‘‘the amounts’’.
Subsec. (a)(1)(K). Pub. L. 101–239, § 6102(e)(7), inserted
‘‘, or, for services furnished on or after January 1, 1992,
65 percent of the fee schedule amount provided under
section 1395w–4 of this title for the same service per-
formed by a physician’’ after ‘‘for the same service per-
formed by a physician’’.
Subsec. (a)(1)(M). Pub. L. 101–234, § 201(a), repealed
Pub. L. 100–360, § 201(b)(1), and provided that the provi-
sions of law amended or repealed by such section are
restored or revived as if such section had not been en-
acted, see 1988 Amendment note below.
Subsec. (a)(1)(N). Pub. L. 101–239, § 6102(e)(1)(B), added
subpar. (N).
Subsec. (a)(2). Pub. L. 101–239, § 6116(b)(1)(A), sub-
stituted ‘‘(G), and (H)’’ for ‘‘and (G)’’ in introductory
provisions.
Pub. L. 101–234, § 201(a), repealed Pub. L. 100–360,
§§ 202(b)(2), 203(c)(1)(A)–(D), 204(d)(1), and 205(c)(1), and
provided that the provisions of law amended or re-
pealed by such sections are restored or revived as if
such sections had not been enacted, see 1988 Amend-
ment notes below.
Subsec. (a)(3). Pub. L. 101–234, § 201(a), repealed Pub.
L. 100–360, § 205(c)(2), and provided that the provisions of
law amended or repealed by such section are restored
or revived as if such section had not been enacted, see
1988 Amendment note below.
Subsec. (a)(6). Pub. L. 101–239, § 6116(b)(1)(B)–(D),
added par. (6).
Subsec. (b). Pub. L. 101–234, § 201(a), repealed Pub. L.
100–360, §§ 202(b)(3), 203(c)(1)(E), and provided that the
provisions of law amended or repealed by such sections
are restored or revived as if such sections had not been
enacted, see 1988 Amendment notes below.
Subsec. (c). Pub. L. 101–234, § 201(a), repealed Pub. L.
100–360, § 201(a)(1), (4), and provided that the provisions
of law amended or repealed by such section are restored
or revived as if such section had not been enacted, see
1988 Amendment notes below.
Subsec. (d). Pub. L. 101–234, § 201(a), repealed Pub. L.
100–360, § 201(a)(1)(D), (2), and provided that the provi-
sions of law amended or repealed by such section are
restored or revived as if such section had not been en-
acted, see 1988 Amendment notes below.
Subsec. (d)(1). Pub. L. 101–239, § 6113(d), substituted
‘‘621⁄2 percent of such expenses.’’ for ‘‘whichever of the
following amounts is the smaller:
‘‘(A) $1375.00, or
‘‘(B) 621⁄2 percent of such expenses.’’
Subsec. (g). Pub. L. 101–239, § 6133(a), substituted
‘‘$750’’ for ‘‘$500’’ in two places.
Pub. L. 101–234, § 201(a), repealed Pub. L. 100–360,
§ 201(a)(3), and provided that the provisions of law
amended or repealed by such section are restored or re-
vived as if such section had not been enacted, see 1988
Amendment note below.
Subsec. (h)(1)(B), (C). Pub. L. 101–239, § 6111(a)(1), sub-
stituted ‘‘on or after July 1, 1984’’ for ‘‘during the pe-
riod beginning on July 1, 1984, and ending on December
31, 1989. For such tests furnished on or after January 1,
1990, the fee schedule shall be established on a nation-
wide basis.’’
Subsec. (h)(1)(D). Pub. L. 101–239, § 6003(e)(2)(A), sub-
stituted ‘‘section 1395ww(d)(5)(D)(iii) of this title’’ for
‘‘the last sentence of section 1395ww(d)(5)(C)(ii) of this
title’’.
Subsec. (h)(4)(B)(ii). Pub. L. 101–239, § 6111(a)(3)(A),
(B), substituted ‘‘after March 31, 1988, and before Janu-
ary 1, 1990,’’ for ‘‘after March 31, 1988, and so long as a
fee schedule for the test has not been established on a
nationwide basis,’’.
Subsec. (h)(4)(B)(iii). Pub. L. 101–239, § 6111(a)(2),
(3)(C), (4), added cl. (iii).
Subsec. (h)(5)(A)(ii). Pub. L. 101–239, § 6111(b)(1), sub-
stituted ‘‘referring laboratory but only if—’’ for ‘‘refer-
ring laboratory, and’’ in introductory provisions, and
added subcls. (I) through (III).
Subsec.
(h)(5)(A)(iii).
Pub.
L.
101–239,
§ 6003(g)(3)(D)(vii)(I), as amended by Pub. L. 101–508,
§ 4008(m)(2)(C), substituted ‘‘hospital or rural primary
care hospital,’’ for ‘‘hospital,’’.
Subsec. (i)(1)(A). Pub. L. 101–239, § 6003(g)(3)(D)(vii)(II),
inserted ‘‘, rural primary care hospital,’’ after ‘‘section
1395k(a)(2)(F)(i) of this title)’’.
Subsec.
(i)(3)(A).
Pub.
L.
101–239,
§ 6003(g)(3)(D)(vii)(III), inserted ‘‘or rural primary care
hospital services’’ after ‘‘facility services’’ in introduc-
tory provisions.
Subsec.
(l)(5)(A).
Pub.
L.
101–239,
§ 6003(g)(3)(D)(vii)(IV), inserted ‘‘rural primary care hos-
pital,’’ after ‘‘hospital,’’ in two places.
Subsec. (l)(5)(C). Pub. L. 101–239, § 6003(g)(3)(D)(vii)(V),
substituted ‘‘hospital or rural primary care hospital’’
for ‘‘hospital’’ in two places.
Subsec. (m). Pub. L. 101–239, § 6102(c)(1), struck out
‘‘class 1 or class 2’’ before ‘‘health manpower shortage
area’’ and substituted ‘‘10 percent’’ for ‘‘5 percent’’.
Subsec. (o)(1). Pub. L. 101–239, § 6131(a)(1)(C), inserted
‘‘(or inserts)’’ after ‘‘shoes’’ in two places in last sen-
tence.
Subsec. (o)(1)(A). Pub. L. 101–239, § 6131(a)(1)(A),
amended subpar. (A) generally. Prior to amendment,
subpar. (A) read as follows: ‘‘no payment may be made
under this part for the furnishing of more than one pair
of shoes for any individual for any calendar year, and’’.
Subsec. (o)(1)(B), (2)(A). Pub. L. 101–239, § 6131(a)(1)(B),
substituted ‘‘limits’’ for ‘‘limit’’.
Subsec. (o)(2)(A)(i). Pub. L. 101–239, § 6131(a)(1)(D),
amended cl. (i) generally. Prior to amendment, cl. (i)
read as follows: ‘‘for the furnishing of one pair of cus-
tom molded shoes is $300’’.
Subsec. (o)(2)(A)(ii)(II). Pub. L. 101–239, § 6131(a)(1)(E),
inserted ‘‘any pairs of’’ after ‘‘$50 for’’.
Subsec. (o)(2)(D). Pub. L. 101–239, § 6131(b), added sub-
par. (D).
Subsec. (p). Pub. L. 101–239, § 6113(b)(3)(B), substituted
‘‘1395x(s)(2)(L) of this title,’’ for ‘‘1395x(s)(2)(L) of this
title and’’ and inserted ‘‘and in the case of clinical so-
cial worker services for which payment may be made
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
under this part only pursuant to section 1395x(s)(2)(N)
of this title,’’ after ‘‘section 1395x(s)(2)(M) of this
title,’’.
Subsec. (q). Pub. L. 101–239, § 6204(b), added subsec. (q).
1988—Subsec. (a). Pub. L. 100–360, § 212(c)(2), inserted
‘‘or, as provided in section 1395t–1(c) of this title, from
the Federal Catastrophic Drug Insurance Trust Fund’’
after ‘‘Fund’’ in introductory provisions.
Pub. L. 100–360, § 205(c)(3), inserted provision at end
relating to payment for in-home care for chronically
dependent individuals.
Subsec. (a)(1)(D)(i). Pub. L. 100–360, § 411(i)(4)(C)(i),
amended Pub. L. 100–203, § 4085(i)(1)(A), see 1987 Amend-
ment note below.
Subsec. (a)(1)(F). Pub. L. 100–360, § 411(f)(12)(A), (14),
added and renumbered Pub. L. 100–203, § 4055(a)(1), see
1987 Amendment note below.
Pub. L. 100–360, § 411(i)(4)(C)(iv), made technical
amendment to directory language of Pub. L. 100–203,
§ 4085(i)(21)(D)(i), see 1987 Amendment note below.
Pub. L. 100–360, § 411(i)(4)(C)(ii), repealed Pub. L.
100–203, § 4085(i)(1)(B), see 1987 Amendment note below.
Pub. L. 100–360, § 411(h)(4)(B)(i), (ii), redesignated and
amended
directory
language
of
Pub.
L.
100–203,
§ 4073(b)(1)(A), see 1987 Amendment note below.
Subsec. (a)(1)(G). Pub. L. 100–360, § 411(h)(7)(C)(ii), re-
pealed Pub. L. 100–203, § 4077(b)(3)(A), see 1987 Amend-
ment note below.
Pub. L. 100–360, § 411(h)(4)(B)(iii), repealed Pub. L.
100–203, § 4073(b)(2)(B), see 1987 Amendment note below.
Subsec. (a)(1)(H). Pub. L. 100–360, § 411(h)(7)(C)(ii), re-
pealed Pub. L. 100–203, § 4077(b)(3)(B), see 1987 Amend-
ment note below.
Pub. L. 100–360, § 411(g)(1)(E), which directed the
amendment of subpar. (H) by striking ‘‘and’’ before
‘‘(I)’’ could not be executed because of the prior amend-
ment by section 4049(a)(1) of Pub. L. 100–203, see 1987
Amendment note below.
Pub. L. 100–360, § 411(i)(3), added Pub. L. 100–203,
§ 4084(c)(2), see 1987 Amendment note below.
Subsec. (a)(1)(J). Pub. L. 100–360, § 411(f)(8)(B)(i), made
technical amendment to directory language of Pub. L.
100–203, § 4049(a)(1), see 1987 Amendment note below.
Pub. L. 100–360, § 411(f)(8)(C), substituted ‘‘section
1395m(b)(6) of this title’’ for ‘‘section 1395m(b)(5) of this
title’’.
Subsec. (a)(1)(K). Pub. L. 100–360, § 411(h)(7)(C)(iii), (F),
redesignated
and
amended
Pub.
L.
100–203,
§ 4077(b)(2)(A), see 1987 Amendment note below.
Pub. L. 100–360, § 411(h)(4)(B)(i), (iv), (v), redesignated
and amended Pub. L. 100–203, § 4073(b)(1)(B), see 1987
Amendment note below.
Subsec. (a)(1)(L). Pub. L. 100–360, § 411(h)(7)(C)(i), (iv),
(v), (F), redesignated and amended Pub. L. 100–203,
§ 4077(b)(2)(B), see 1987 Amendment note below.
Subsec. (a)(1)(M). Pub. L. 100–360, § 202(b)(1), added
subpar. (M) relating to expenses incurred for covered
outpatient drugs.
Subsec. (a)(2). Pub. L. 100–360, § 205(c)(1), inserted
‘‘(A)(ii),’’ after ‘‘subparagraphs’’ in introductory provi-
sions.
Pub. L. 100–360, § 202(b)(2), inserted ‘‘(other than cov-
ered outpatient drugs)’’ after ‘‘in the case of services’’
in introductory provisions.
Subsec. (a)(2)(B). Pub. L. 100–360, § 203(c)(1)(A), sub-
stituted ‘‘(E), or (F)’’ for ‘‘or (E)’’ in introductory pro-
visions.
Subsec. (a)(2)(D)(i). Pub. L. 100–360, § 411(i)(4)(C)(i),
amended Pub. L. 100–203, § 4085(i)(1)(A), see 1987 Amend-
ment note below.
Subsec. (a)(2)(E)(i). Pub. L. 100–360, § 204(d)(1), inserted
‘‘, but excluding screening mammography’’ after ‘‘im-
aging services’’.
Subsec. (a)(2)(F). Pub. L. 100–360, § 203(c)(1)(B)–(D),
added subpar. (F) relating to home intravenous drug
therapy services.
Subsec. (a)(3). Pub. L. 100–360, § 205(c)(2), substituted
‘‘subparagraphs (A)(ii), (D),’’ for ‘‘subparagraphs (D)’’.
Subsec. (b). Pub. L. 100–360, § 104(d)(7), as added by
Pub. L. 100–485, § 608(d)(3)(G), inserted at end ‘‘The de-
ductible under the previous sentence for blood or blood
cells furnished an individual in a year shall be reduced
to the extent that a deductible has been imposed under
section 1395e(a)(2) of this title to blood or blood cells
furnished the individual in the year.’’
Subsec. (b)(1). Pub. L. 100–360, § 202(b)(3)(A), inserted
‘‘or for covered outpatient drugs’’ after ‘‘section
1395x(s)(10)(A) of this title’’.
Subsec. (b)(2). Pub. L. 100–360, § 203(c)(1)(E), sub-
stituted ‘‘services and home intravenous drug therapy
services’’ for ‘‘services’’.
Pub. L. 100–360, § 202(b)(3)(B), inserted ‘‘or with re-
spect to covered outpatient drugs’’ after ‘‘home health
services’’.
Subsec. (b)(3) to (5). Pub. L. 100–360, § 411(f)(12)(A), (14),
added and renumbered Pub. L. 100–203, § 4055(a)(2), see
1987 Amendment note below.
Subsec. (c). Pub. L. 100–360, § 201(a)(4), added subsec.
(c) relating to limitation on out-of-pocket catastrophic
cost-sharing, adjustment, buy-out plans, and conditions
for payments with respect to plans other than buy-out
plans. Former subsec. (c) redesignated (d)(1).
Pub. L. 100–360, § 411(h)(1)(A), substituted ‘‘monitoring
or changing drug prescriptions’’ for ‘‘prescribing or
monitoring prescription drugs’’ in last sentence.
Pub. L. 100–360, § 201(a)(1)(A), as amended by Pub. L.
100–485, § 608(d)(4), substituted ‘‘subsections (a) through
(c)’’ for ‘‘subsections (a) and (b)’’ in introductory provi-
sions.
Pub. L. 100–360, § 201(a)(1)(B), (C), redesignated former
pars. (1) and (2) as subpars. (A) and (B) and substituted
‘‘this paragraph’’ for ‘‘this subsection’’ in last sentence.
Subsec. (d)(1). Pub. L. 100–360, § 201(a)(1)(D), redesig-
nated former subsec. (c) as subsec. (d)(1). Former sub-
sec. (d) redesignated subsec. (d)(2).
Subsec. (d)(2). Pub. L. 100–360, § 201(a)(2), redesignated
former subsec. (d) as subsec. (d)(2).
Subsec. (f). Pub. L. 100–360, § 411(g)(5), substituted
‘‘MEI (as defined in section 1395u(i)(3) of this title) ap-
plicable to primary care services (as defined in section
1395u(i)(4) of this title)’’ for ‘‘medicare economic index
(referred to in the fourth sentence of section 1395u(b)(3)
of this title) applicable to physicians’ services’’.
Subsec. (g). Pub. L. 100–360, § 201(a)(3), substituted
‘‘subsections (a) through (c) of this section’’ for ‘‘sub-
sections (a) and (b) of this section’’ in two places.
Subsec. (h)(1)(D). Pub. L. 100–360, § 411(g)(3)(E), (F),
amended and redesignated Pub. L. 100–203, § 4064(c)(1),
see 1987 Amendment note below.
Subsec. (h)(2)(A)(i). Pub. L. 100–360, § 411(g)(3)(A),
added Pub. L. 100–203, § 4064(a)(1), see 1987 Amendment
note below.
Subsec. (h)(2)(A)(ii). Pub. L. 100–360, § 411(g)(3)(A),
added Pub. L. 100–203, § 4064(a)(3), see 1987 Amendment
note below.
Subsec. (h)(2)(A)(iii). Pub. L. 100–360, § 411(g)(3)(B), (C),
amended Pub. L. 100–203, § 4064(b)(1), see 1987 Amend-
ment note below.
Subsec. (h)(2)(B). Pub. L. 100–360, § 411(g)(3)(A), added
Pub. L. 100–203, § 4064(a)(2), see 1987 Amendment note
below.
Subsec. (h)(3). Pub. L. 100–647, § 8421(a), inserted at
end ‘‘In establishing a fee to cover the transportation
and personnel expenses for trained personnel to travel
to the location of an individual to collect a sample, the
Secretary shall provide a method for computing the fee
based on the number of miles traveled and the per-
sonnel costs associated with the collection of each indi-
vidual sample, but the Secretary shall only be required
to apply such method in the case of tests furnished dur-
ing the period beginning on April 1, 1989, and ending on
December 31, 1990, by a laboratory that establishes to
the satisfaction of the Secretary (based on data for the
12-month period ending June 30, 1988) that (i) the lab-
oratory is dependent upon payments under this sub-
chapter for at least 80 percent of its collected revenues
for clinical diagnostic laboratory tests, (ii) at least 85
percent of its gross revenues for such tests are attrib-
utable to tests performed with respect to individuals
who are homebound or who are residents in a nursing
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
facility, and (iii) the laboratory provided such tests for
residents in nursing facilities representing at least 20
percent of the number of such facilities in the State in
which the laboratory is located.’’
Subsec. (h)(4)(B)(ii). Pub. L. 100–360, § 411(g)(3)(D), in-
serted ‘‘after’’ before ‘‘March 31, 1988’’.
Subsec. (h)(5)(A). Pub. L. 100–360, § 411(i)(4)(C)(vi),
added Pub. L. 100–203, § 4085(i)(22)(B), see 1987 Amend-
ment note below.
Subsec. (h)(5)(C). Pub. L. 100–360, § 411(i)(4)(C)(vi),
added Pub. L. 100–203, § 4085(i)(22)(B), see 1987 Amend-
ment note below.
Subsec. (h)(5)(D). Pub. L. 100–360, § 411(i)(4)(B), sub-
stituted ‘‘A person may not bill for a clinical diag-
nostic laboratory test performed by a laboratory, other
than a rural health clinic, other than on an assign-
ment-related basis. If a person knowingly and willfully
and on a repeated basis bills for a clinical diagnostic
laboratory test in violation of the previous sentence’’
for ‘‘If a person knowingly and willfully and on a re-
peated basis bills an individual enrolled under this part
for charges for a clinical diagnostic laboratory test for
which payment may only be made on an assignment-re-
lated basis under subparagraph (C)’’ and ‘‘paragraphs
(2) and (3) of section 1395u(j) of this title in the same
manner such paragraphs apply with respect to a physi-
cian’’ for ‘‘section 1395u(j)(2) of this title’’.
Subsec. (i)(2)(A)(iii). Pub. L. 100–360, § 411(g)(2)(D),
substituted ‘‘insertion’’ for ‘‘implantation’’ and in-
serted ‘‘or subsequent to’’ after ‘‘during’’.
Subsec. (i)(4). Pub. L. 100–360, § 411(f)(12)(A), (14),
added and renumbered Pub. L. 100–203, § 4055(a)(3), see
1987 Amendment note below.
Subsec. (i)(6). Pub. L. 100–485, § 608(d)(22)(B), sub-
stituted ‘‘Any person, including’’ for ‘‘Any person,
other than’’.
Pub. L. 100–360, § 411(g)(2)(E), added Pub. L. 100–203,
§ 4063(e)(1), see 1987 Amendment note below.
Subsec. (l)(2). Pub. L. 100–360, § 411(f)(2)(D), added Pub.
L. 100–203, § 4042(b)(2)(B), see 1987 Amendment note
below.
Subsec. (l)(3)(B). Pub. L. 100–647, § 8422(a), inserted
‘‘plus applicable coinsurance’’ after ‘‘would have been
paid’’.
Subsec. (l)(5)(B)(ii). Pub. L. 100–360, § 411(i)(4)(C)(vi),
added Pub. L. 100–203, § 4085(i)(23), see 1987 Amendment
note below.
Subsec. (n)(1)(A). Pub. L. 100–360, § 411(g)(4)(C)(i), as
amended by Pub. L. 100–485, § 608(d)(22)(D), substituted
‘‘for services described in subsection (a)(2)(E)(i) fur-
nished under this part on or after October 1, 1988, and
for services described in subsection (a)(2)(E)(ii) fur-
nished under this part on or after October 1, 1989,’’ for
‘‘beginning on or after October 1, 1988 under this part
for services described in subsection (a)(2)(E)’’ in intro-
ductory provisions.
Subsec.
(n)(1)(B)(i)(II).
Pub.
L.
100–360,
§ 411(g)(4)(C)(ii), inserted ‘‘or (for services described in
subsection (a)(2)(E)(i) furnished on or after January 1,
1989) the fee schedule amount established’’ after ‘‘the
prevailing charge’’.
Subsec. (n)(1)(B)(ii). Pub. L. 100–360, § 411(g)(4)(C)(iii),
amended subcls. (I) and (II) generally. Prior to amend-
ment, subcls. (I) and (II) read as follows:
‘‘(I) The term ‘cost proportion’ means 65 percent for
all or any part of cost reporting periods which occur in
fiscal year 1989 and 50 percent for other cost reporting
periods.
‘‘(II) The term ‘charge proportion’ means 35 percent
for all or any parts of cost reporting periods which
occur in fiscal year 1989 and 50 percent for other cost
reporting periods.’’
Subsec. (o). Pub. L. 100–360, § 411(h)(3)(B), as amended
by Pub. L. 100–485, § 608(d)(23)(A), amended Pub. L.
100–203, § 4072(b), see 1987 Amendment note below.
Subsec. (p). Pub. L. 100–360, § 411(h)(7)(D), (F), redesig-
nated and amended Pub. L. 100–203, § 4077(b)(3), see 1987
Amendment note below.
Pub. L. 100–360, § 411(h)(4)(C), redesignated and amend-
ed Pub. L. 100–203, § 4073(b)(2), see 1987 Amendment note
below.
1987—Subsec.
(a)(1)(D)(i).
Pub.
L.
100–203,
§ 4085(i)(1)(A),
as
amended
by
Pub.
L.
100–360,
§ 411(i)(4)(C)(i), substituted ‘‘on an assignment-related
basis,’’ for ‘‘on the basis of an assignment described in
section 1395u(b)(3)(B)(ii) of this title, under the proce-
dure described in section 1395gg(f)(1) of this title,’’.
Subsec. (a)(1)(F). Pub. L. 100–203, § 4055(a)(1), formerly
§ 4054(a)(1), as added and renumbered by Pub. L. 100–360,
§ 411(f)(12)(A), (14), struck out subpar. (F) which read as
follows: ‘‘with respect to expenses incurred for services
described in subsection (i)(4) of this section under the
conditions specified in such subsection, the amounts
paid shall be the reasonable charge for such services,’’.
Pub. L. 100–203, § 4085(i)(21)(D)(i), as amended by Pub.
L. 100–360, § 411(i)(4)(C)(iv), amended Pub. L. 99–509,
§ 9343(e)(2)(A), see 1986 Amendment note below.
Pub. L. 100–203, § 4085(i)(1)(B), which directed striking
out ‘‘and’’ at end, was repealed by Pub. L. 100–360,
§ 411(i)(4)(C)(ii).
Pub. L. 100–203, § 4073(b)(1)(A), formerly § 4073(b)(2)(A),
as redesignated and amended by Pub. L. 100–360,
§ 411(h)(4)(B)(i), (ii), struck out ‘‘and’’ at end.
Subsec. (a)(1)(G). Pub. L. 100–203, § 4077(b)(3)(A), which
directed striking out ‘‘and’’ at end, was repealed by
Pub. L. 100–360, § 411(h)(7)(C)(ii).
Pub. L. 100–203, § 4073(b)(2)(B), which directed sub-
stituting ‘‘services,’’ for ‘‘services; and’’, was repealed
by Pub. L. 100–360, § 411(h)(4)(B)(iii).
Pub. L. 100–203, § 4062(d)(3)(A)(i), substituted ‘‘serv-
ices,’’ for ‘‘services; and’’.
Subsec. (a)(1)(H). Pub. L. 100–203, § 4077(b)(3)(B), which
directed substituting ‘‘services,’’ for ‘‘services; and’’,
was repealed by Pub. L. 100–360, § 411(h)(7)(C)(ii).
Pub. L. 100–203, § 4084(c)(2), as added by Pub. L.
100–360, § 411(i)(3), substituted ‘‘least of the actual
charge, the prevailing charge that would be recognized
if the services had been performed by an anesthesiol-
ogist,’’ for ‘‘lesser of the actual charge’’.
Pub. L. 100–203, § 4062(d)(3)(A)(ii), inserted ‘‘and’’ be-
fore the subpar. (I) added by section 4062(d)(3)(A)(ii) of
Pub. L. 100–203, see below.
Pub. L. 100–203, § 4049(a)(1), struck out ‘‘and’’ before
the subpar. (I) added by section 4062(d)(3)(A)(ii) of Pub.
L. 100–203, see below.
Subsec. (a)(1)(I). Pub. L. 100–203, § 4062(d)(3)(A)(ii),
added subpar. (I).
Subsec. (a)(1)(J). Pub. L. 100–203, § 4049(a)(1), as
amended by Pub. L. 100–360, § 411(f)(8)(B)(i), added sub-
par. (J).
Subsec. (a)(1)(K). Pub. L. 100–203, § 4077(b)(2)(A), for-
merly § 4077(b)(3)(C), as redesignated and amended by
Pub. L. 100–360, § 411(h)(7)(C)(iii), (F), inserted ‘‘and’’
after ‘‘performed by a physician),’’.
Pub. L. 100–203, § 4073(b)(1)(B), formerly § 4073(b)(2)(C),
as redesignated and amended by Pub. L. 100–360,
§ 411(h)(4)(B)(i), (iv), (v), added subpar. (K), formerly (I),
relating to amounts paid with respect to certified
nurse-midwife services under section 1395x(s)(2)(L) of
this title.
Subsec. (a)(1)(L). Pub. L. 100–203, § 4077(b)(2)(B), for-
merly § 4077(b)(3)(D), as redesignated and amended by
Pub. L. 100–360, § 411(h)(7)(C)(i), (iv), (v), (F), added sub-
par. (L), formerly (J), relating to amounts paid with re-
spect to qualified psychologist services under section
1395x(s)(2)(M) of this title.
Subsec. (a)(2). Pub. L. 100–203, § 4062(d)(3)(B)(i), in-
serted reference to subpar. (G).
Subsec. (a)(2)(A). Pub. L. 100–203, § 4062(d)(3)(B)(ii),
struck out ‘‘(other than durable medical equipment)’’
after ‘‘home health services’’.
Subsec. (a)(2)(B). Pub. L. 100–203, § 4066(b), inserted
reference to subpar. (E).
Subsec. (a)(2)(D)(i). Pub. L. 100–203, § 4085(i)(1)(A), as
amended by Pub. L. 100–360, § 411(i)(4)(C)(i), substituted
‘‘on an assignment-related basis,’’ for ‘‘on the basis of
an assignment described in section 1395u(b)(3)(B)(ii) of
this title, under the procedure described in section
1395gg(f)(1) of this title,’’.
Subsec. (a)(2)(E). Pub. L. 100–203, § 4066(a)(1), added
subpar. (E).
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
Subsec. (a)(5). Pub. L. 100–203, § 4062(d)(3)(C)–(E), added
par. (5).
Subsec. (b)(3). Pub. L. 100–203, § 4055(a)(2), formerly
§ 4054(a)(2), as added and renumbered by Pub. L. 100–360,
§ 411(f)(12)(A), (14), redesignated par. (4) as (3) and
struck out former par. (3) which read as follows: ‘‘such
total amount shall not include expenses incurred for
services the amount of payment for which is deter-
mined under subsection (a)(1)(F) of this section,’’.
Pub. L. 100–203, § 4085(i)(21)(D)(i), amended Pub. L.
99–509, § 9343(e)(2)(A), see 1986 Amendment note below.
Subsec. (b)(4). Pub. L. 100–203, § 4055(a)(2), formerly
§ 4054(a)(2), as added and renumbered by Pub. L. 100–360,
§ 411(f)(12)(A), (14), redesignated par. (5) as (4). Former
par. (4) redesignated (3).
Subsec. (b)(4)(A). Pub. L. 100–203, § 4085(i)(1)(C), sub-
stituted ‘‘on an assignment-related basis’’ for ‘‘on the
basis
of
an
assignment
described
in
section
1395u(b)(3)(B)(ii) of this title, under the procedure de-
scribed in section 1395gg(f)(1) of this title’’.
Subsec. (b)(5). Pub. L. 100–203, § 4055(a)(2), formerly
§ 4054(a)(2), as added and renumbered by Pub. L. 100–360,
§ 411(f)(12)(A), (14), redesignated par. (5) as (4).
Subsec. (c). Pub. L. 100–203, § 4070(b)(4), inserted ‘‘or
partial hospitalization services that are not directly
provided by a physician’’ before period at end of last
sentence.
Pub. L. 100–203, § 4070(a)(2), inserted sentence at end
defining ‘‘treatment’’.
Subsec. (c)(1). Pub. L. 100–203, § 4070(a)(1), substituted
‘‘$1375.00’’ for ‘‘$312.50’’.
Subsec. (f). Pub. L. 100–203, § 4067(a), added subsec. (f).
Subsec. (h)(1)(C). Pub. L. 100–203, § 4085(i)(2), inserted
before period at end ‘‘, and ending on December 31, 1989.
For such tests furnished on or after January 1, 1990, the
fee schedule shall be established on a nationwide
basis’’.
Subsec. (h)(1)(D). Pub. L. 100–203, § 4064(c)(1), formerly
§ 4064(c), as amended and redesignated by Pub. L.
100–360, § 411(g)(3)(E), (F), inserted ‘‘, in a sole commu-
nity hospital (as defined in the last sentence of section
1395ww(d)(5)(C)(ii) of this title),’’.
Subsec. (h)(2). Pub. L. 100–203, § 4064(c), which had di-
rected that ‘‘laboratory in a sole community hospital’’
be substituted for ‘‘hospital laboratory’’ in subsec.
(h)(2),
was
redesignated
§ 4064(c)(1)
by
section
411(g)(3)(F) of Pub. L. 100–360 and amended by section
411(g)(3)(E) of Pub. L. 100–360 to provide for amendment
of subsec. (h)(1)(D) instead of subsec. (h)(2).
Subsec. (h)(2)(A)(i). Pub. L. 100–203, § 4064(a)(1), as
added by Pub. L. 100–360, § 411(g)(3)(A), inserted ‘‘(A)(i)’’
after ‘‘(2)’’.
Subsec. (h)(2)(A)(ii). Pub. L. 100–203, § 4064(a)(3), as
added by Pub. L. 100–360, § 411(g)(3)(A), added cl. (ii).
Subsec. (h)(2)(A)(iii). Pub. L. 100–203, § 4064(b)(1), as
amended by Pub. L. 100–360, § 411(g)(3)(B), (C), set out as
cl. (iii) provisions formerly set out in an otherwise un-
designated sentence in par. (2) relating to the rebasing
of fee schedules for certain automated and similar tests
for 1988 and for the continuation of such reduced fee
schedules as the base for 1989 and subsequent years.
Subsec. (h)(2)(B). Pub. L. 100–203, § 4064(a)(2), as added
by Pub. L. 100–360, § 411(g)(3)(A), inserted subpar. (B)
designation preceding second sentence and redesig-
nated former subpars. (A) and (B) of par. (2) as cls. (i)
and (ii).
Subsec. (h)(4)(B)(i). Pub. L. 100–203, § 4064(b)(2)(A), sub-
stituted ‘‘April’’ for ‘‘January’’.
Subsec. (h)(4)(B)(ii). Pub. L. 100–203, § 4064(b)(2)(B),
amended cl. (ii) generally. Prior to amendment, cl. (ii)
read as follows: ‘‘after December 31, 1987, and so long as
a fee schedule for the test has not been established on
a nationwide basis, is equal to 110 percent of the me-
dian of all the fee schedules established for that test for
that laboratory setting under paragraph (1).’’
Subsec. (h)(5)(A). Pub. L. 100–203, § 4085(i)(22)(B), as
added by Pub. L. 100–360, § 411(i)(4)(C)(vi), substituted
‘‘on an assignment-related basis’’ for ‘‘on the basis of
an assignment described in section 1395u(b)(3)(B)(ii) of
this title, under the procedure described in section
1395gg(f)(1) of this title,’’ in introductory provisions.
Subsec. (h)(5)(A)(iii). Pub. L. 100–203, § 4085(i)(3), added
cl. (iii).
Subsec. (h)(5)(C). Pub. L. 100–203, § 4085(i)(22)(B), as
added by Pub. L. 100–360, § 411(i)(4)(C)(vi), substituted
‘‘on an assignment-related basis’’ for ‘‘on the basis of
an assignment described in section 1395u(b)(3)(B)(ii) of
this title, in accordance with section 1395u(b)(6)(B) of
this title, under the procedure described in section
1395gg(f)(1) of this title,’’.
Subsec. (h)(5)(D). Pub. L. 100–203, § 4085(b)(1), added
subpar. (D).
Subsec. (i)(2)(A)(iii). Pub. L. 100–203, § 4063(b), added
cl. (iii).
Subsec. (i)(3)(B)(ii). Pub. L. 100–203, § 4068(a)(1), sub-
stituted ‘‘Subject to the last sentence of this clause,
in’’ for ‘‘In’’.
Pub. L. 100–203, § 4068(a)(2), inserted sentence at end
relating to cost and ASC proportions in the case of an
eye or eye and ear specialty hospital.
Subsec. (i)(4). Pub. L. 100–203, § 4055(a)(3), formerly
§ 4054(a)(3), as added and renumbered by Pub. L. 100–360,
§ 411(f)(12)(A), (14), struck out par. (4) which read as fol-
lows: ‘‘In the case of services (including all pre- and
post-operative services) described in paragraphs (1) and
(2)(A) of section 1395x(s) of this title and furnished in
connection with surgical procedures (specified pursuant
to paragraph (1) of this subsection) in a physician’s of-
fice, an ambulatory surgical center described in such
paragraph, or a hospital outpatient department, pay-
ment for such services shall be determined in accord-
ance with subsection (a)(1)(F) of this section if the phy-
sician accepts an assignment described in section
1395u(b)(3)(B)(ii) of this title with respect to payment
for such services.’’
Subsec. (i)(6). Pub. L. 100–203, § 4063(e)(1), as added by
Pub. L. 100–360, § 411(g)(2)(E), added par. (6).
Subsec. (l)(2). Pub. L. 100–203, § 4084(a)(1), substituted
‘‘1985 and such other data as the Secretary determines
necessary’’ for ‘‘1985’’.
Pub. L. 100–203, § 4042(b)(2)(B), as added by Pub. L.
100–360,
§ 411(f)(2)(D),
substituted
‘‘1395u(i)(3)’’
for
‘‘1395u(b)(4)(E)(ii)’’.
Subsec. (l)(5)(A). Pub. L. 100–203, § 4084(a)(2), sub-
stituted ‘‘group practice, or ambulatory surgical cen-
ter’’ for ‘‘or group practice’’ in two places.
Subsec. (l)(5)(B)(ii). Pub. L. 100–203, § 4085(i)(23), as
added by Pub. L. 100–360, § 411(i)(4)(C)(vi), substituted
‘‘money penalty’’ for ‘‘monetary penalty’’ and amended
second sentence generally. Prior to amendment, second
sentence read as follows: ‘‘Such a penalty shall be im-
posed in the same manner as civil monetary penalties
are imposed under section 1320a–7a of this title with re-
spect to actions described in subsection (a) of that sec-
tion.’’
Subsec. (l)(6). Pub. L. 100–203, § 4045(c)(2)(A)(i), (ii),
struck out subpar. (A) designation and substituted
‘‘after the effective date of the reduction, the physi-
cian’s actual charge is subject to a limit under section
1395u(j)(1)(D) of this title.’’ for ‘‘(subject to subpara-
graph (D)), the physician may not charge the individual
more than the limiting charge (as defined in subpara-
graph (B)) plus (for services furnished during the 12-
month period beginning on the effective date of the re-
duction) 1⁄2 of the amount by which the physician’s ac-
tual charges for the service for the previous 12-month
period exceeds the limiting charge.’’
Pub. L. 100–203, § 4045(c)(2)(A)(iii), struck out subpars.
(B) to (D) which read as follows:
‘‘(B) In subparagraph (A), the term ‘limiting charge’
means, with respect to a service, 125 percent of the pre-
vailing charge for the service after the reduction re-
ferred to in subparagraph (A).
‘‘(C) If a physician knowingly and willfully imposes
charges in violation of subparagraph (A), the Secretary
may apply sanctions against such physician in accord-
ance with subsection (j)(2) of this section.
‘‘(D) This paragraph shall not apply to services fur-
nished after the earlier of (i) December 31, 1990, or (ii)
one-year after the date the Secretary reports to Con-
gress, under section 1395w–1(e)(3) of this title, on the
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
development of the relative value scale under section
1395w–1 of this title.’’
Subsec. (m). Pub. L. 100–203, § 4043(a), added subsec.
(m).
Subsec. (n). Pub. L. 100–203, § 4066(a)(2), added subsec.
(n).
Subsec. (o). Pub. L. 100–203, § 4072(b), as amended by
Pub. L. 100–360, § 411(h)(3)(B), as amended by Pub. L.
100–485, § 608(d)(23)(A), added subsec. (o) [originally
added as subsec. (f)].
Subsec. (p). Pub. L. 100–203, § 4077(b)(3), formerly
§ 4077(b)(4), as redesignated and amended by Pub. L.
100–360, § 411(h)(7)(D), (F), inserted ‘‘and in the case of
qualified psychologists services for which payment may
be made under this part only pursuant to section
1395x(s)(2)(M) of this title’’.
Pub. L. 100–203, § 4073(b)(2), formerly § 4073(b)(3), as re-
designated
and
amended
by
Pub.
L.
100–360,
§ 411(h)(4)(C), added subsec. (p) [originally added as sub-
sec. (m)] and inserted provision relating to monetary
penalty for whoever knowingly and willfully presents,
or causes to be presented, to an enrolled individual a
bill or request for payment for described services.
1986—Subsec. (a)(1)(D). Pub. L. 99–272, § 9401(b)(2)(B),
substituted ‘‘, under the procedure described in section
1395gg(f)(1) of this title, or for tests furnished in con-
nection with obtaining a second opinion required under
section 1320c–13(c)(2) of this title (or a third opinion, if
the second opinion was in disagreement with the first
opinion)’’ for ‘‘or under the procedure described in sec-
tion 1395gg(f)(1) of this title’’.
Subsec. (a)(1)(D)(i). Pub. L. 99–272, § 9303(b)(1), inserted
‘‘, the limitation amount for that test determined
under subsection (h)(4)(B),’’ after ‘‘lesser of the amount
determined under such fee schedule’’.
Subsec. (a)(1)(F). Pub. L. 99–509, § 9343(e)(2)(A), as
amended by Pub. L. 100–203, § 4085(i)(21)(D)(i), sub-
stituted ‘‘(i)(4)’’ for ‘‘(i)(3)’’.
Subsec. (a)(1)(G). Pub. L. 99–272, § 9401(b)(2)(A), added
subpar. (G).
Subsec. (a)(1)(H). Pub. L. 99–509, § 9320(e)(1), added sub-
par. (H).
Subsec. (a)(2)(A). Pub. L. 99–272, § 9401(b)(2)(C), in-
serted ‘‘, to items and services (other than clinical di-
agnostic laboratory tests) furnished in connection with
obtaining a second opinion required under section
1320c–13(c)(2) of this title (or a third opinion, if the sec-
ond opinion was in disagreement with the first opin-
ion),’’ after ‘‘(other than durable medical equipment)’’.
Subsec. (a)(2)(D). Pub. L. 99–272, § 9401(b)(2)(D), sub-
stituted ‘‘to a provider having an agreement under sec-
tion 1395cc of this title, or for tests furnished in con-
nection with obtaining a second opinion required under
section 1320c–13(c)(2) of this title (or a third opinion, if
the second opinion was in disagreement with the first
opinion)’’ for ‘‘or to a provider having an agreement
under section 1395cc of this title’’.
Subsec. (a)(2)(D)(i). Pub. L. 99–272, § 9303(b)(1), inserted
‘‘, the limitation amount for that test determined
under subsection (h)(4)(B),’’ after ‘‘lesser of the amount
determined under such fee schedule’’.
Subsec. (a)(3). Pub. L. 99–272, § 9401(b)(2)(E), inserted
‘‘and for items and services furnished in connection
with obtaining a second opinion required under section
1320c–13(c)(2) of this title, or a third opinion, if the sec-
ond opinion was in disagreement with the first opin-
ion’’ after ‘‘1395x(s)(10)(A) of this title’’.
Subsec. (a)(4). Pub. L. 99–509, § 9343(a)(1)(A), amended
par. (4) generally. Prior to amendment, par. (4) read as
follows: ‘‘in the case of facility services described in
subparagraph (F) of section 1395k(a)(2) of this title, the
applicable amount described in paragraph (2) of sub-
section (i) of this section.’’
Subsec. (b)(3). Pub. L. 99–509, § 9343(e)(2)(A), as amend-
ed by Pub. L. 100–203, § 4085(i)(21)(D)(i), which directed
that par. (3) be amended by striking ‘‘or under sub-
section (i)(2) or (i)(4) of this section’’, was executed by
striking ‘‘or under subsection (i)(2) or (i)(5) of this sec-
tion’’, to reflect the probable intent of Congress and an
earlier amendment by Pub. L. 99–509, § 9343(a)(2), see
below.
Pub. L. 99–509, § 9343(a)(2), substituted ‘‘(i)(5)’’ for
‘‘(i)(4)’’.
Subsec. (b)(5). Pub. L. 99–272, § 9401(b)(1), added par.
(5).
Subsec. (g). Pub. L. 99–509, § 9337(b), substituted ‘‘sec-
ond sentence’’ for ‘‘next to last sentence’’, and inserted
at end ‘‘In the case of outpatient occupational therapy
services which are described in the second sentence of
section 1395x(p) of this title through the operation of
section 1395x(g) of this title, with respect to expenses
incurred in any calendar year, no more than $500 shall
be considered as incurred expenses for purposes of sub-
sections (a) and (b).’’
Subsec. (h)(1)(B). Pub. L. 99–509, § 9339(b)(1), sub-
stituted ‘‘December 31, 1989’’ and ‘‘January 1, 1990’’ for
‘‘December 31, 1987’’ and ‘‘January 1, 1988’’, respec-
tively.
Pub. L. 99–509, § 9339(a)(1)(A), substituted ‘‘qualified
hospital laboratory (as defined in subparagraph (D))’’
for ‘‘hospital laboratory’’.
Pub. L. 99–272, § 9303(a)(1)(A), substituted ‘‘December
31, 1987’’ for ‘‘June 30, 1987’’ and ‘‘January 1, 1988’’ for
‘‘July 1, 1987’’.
Subsec. (h)(1)(C). Pub. L. 99–509, § 9339(a)(1)(B), sub-
stituted ‘‘qualified hospital laboratory (as defined in
subparagraph (D))’’ for ‘‘hospital laboratory’’, struck
out ‘‘, and ending on December 31, 1987’’ after ‘‘July 1,
1984’’, and struck out ‘‘For such tests furnished on or
after January 1, 1988, the fee schedule under subpara-
graph (A) shall not apply with respect to clinical diag-
nostic laboratory tests performed by a hospital labora-
tory for outpatients of such hospital.’’ which con-
stituted second sentence.
Pub. L. 99–272, § 9303(a)(1)(A), substituted ‘‘December
31, 1987’’ for ‘‘June 30, 1987’’ and ‘‘January 1, 1988’’ for
‘‘July 1, 1987’’.
Subsec. (h)(1)(D). Pub. L. 99–509, § 9339(a)(1)(C), added
subpar. (D).
Subsec. (h)(2). Pub. L. 99–509, § 9339(b)(2), struck out
‘‘(or, effective January 1, 1988, for the United States)’’
after ‘‘applicable region, State, or area’’.
Pub. L. 99–509, § 9339(a)(1)(D), substituted ‘‘qualified
hospital laboratory (as defined in paragraph (1)(D))’’ for
‘‘hospital laboratory’’.
Pub. L. 99–272, § 9303(a)(1), substituted ‘‘January 1,
1988’’ for ‘‘July 1, 1987’’, and inserted ‘‘(to become effec-
tive on January 1 of each year)’’ after ‘‘adjusted annu-
ally’’.
Subsec. (h)(3). Pub. L. 99–509, § 9339(c)(1), inserted sub-
par. (A) designation after ‘‘provide for and establish’’,
and added subpar. (B).
Subsec. (h)(4). Pub. L. 99–272, § 9303(b)(2), designated
existing provisions as subpar. (A) and added subpar. (B).
Subsec. (h)(5)(C). Pub. L. 99–272, § 9303(b)(3), sub-
stituted ‘‘laboratory other than’’ for ‘‘laboratory which
is independent of a physician’s office or’’.
Subsec. (i)(1). Pub. L. 99–509, § 9343(b)(2), inserted at
end ‘‘The lists of procedures established under subpara-
graphs (A) and (B) shall be reviewed and updated not
less often than every 2 years.’’
Subsec. (i)(2). Pub. L. 99–509, § 9343(e)(2)(B), inserted
‘‘80 percent of’’ before ‘‘a standard overhead amount’’
in introductory provisions of subpars. (A) and (B).
Pub. L. 99–509, § 9343(b)(1), substituted ‘‘shall be re-
viewed and updated not later than July 1, 1987, and an-
nually thereafter’’ for ‘‘shall be reviewed periodically’’
in concluding provisions of subpars. (A) and (B).
Subsec. (i)(3) to (5). Pub. L. 99–509, § 9343(a)(1)(B),
added par. (3) and redesignated former pars. (3) and (4)
as (4) and (5), respectively.
Subsec. (l). Pub. L. 99–509, § 9320(e)(2), added subsec.
(l).
1984—Subsec. (a)(1). Pub. L. 98–369, § 2354(b)(7), struck
out ‘‘and’’ at the end.
Subsec. (a)(1)(B). Pub. L. 98–369, § 2323(b)(1), sub-
stituted ‘‘section 1395x(s)(10)(A) of this title’’ for ‘‘sec-
tion 1395x(s)(10) of this title’’.
Subsec. (a)(1)(D). Pub. L. 98–369, § 2303(a), amended
subpar. (D) generally. Prior to amendment, subpar. (D)
read as follows: ‘‘with respect to diagnostic tests per-
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
formed in a laboratory for which payment is made
under this part to the laboratory, the amounts paid
shall be equal to 100 percent of the negotiated rate for
such tests (as determined pursuant to subsection (h) of
this section),’’.
Subsec. (a)(1)(F), (G). Pub. L. 98–369, § 2305(a), redesig-
nated subpar. (G) as (F), and struck out former subpar.
(F) which related to payment of reasonable charges for
preadmission diagnostic services furnished by a physi-
cian to individuals enrolled under this part which are
furnished in the outpatient department of a hospital
within seven days of such individual’s admission to the
same hospital or another hospital or furnished in the
physician’s office within seven days of such individual’s
admission to a hospital as an inpatient.
Subsec. (a)(2). Pub. L. 98–369, § 2305(c), struck out ‘‘and
in paragraph (5) of this subsection’’ after ‘‘of such sec-
tion’’.
Subsec. (a)(2)(A). Pub. L. 98–617, § 3(b)(2), inserted
‘‘, or by another provider which demonstrates to the
satisfaction of the Secretary that a significant portion
of its patients are low-income (and requests that pay-
ment be made under this provision),’’.
Pub. L. 98–369, § 2354(b)(5), realigned margin of subpar.
(A).
Pub. L. 98–369, § 2321(b)(1), inserted in provision pre-
ceding cl. (i) ‘‘(other than durable medical equip-
ment)’’.
Pub. L. 98–369, § 2323(b)(1), substituted ‘‘section
1395x(s)(10)(A) of this title’’ for ‘‘section 1395x(s)(10) of
this title’’.
Subsec. (a)(2)(B). Pub. L. 98–369, § 2354(b)(5), realigned
margin of subpar. (B).
Pub. L. 98–369, § 2321(b)(2), inserted in provision pre-
ceding cl. (i) ‘‘items and’’ after ‘‘to other’’.
Pub. L. 98–369, § 2303(b)(1), inserted ‘‘or (D)’’ after
‘‘subparagraph (C)’’.
Subsec. (a)(2)(B)(ii). Pub. L. 98–369, § 2308(b)(2)(B), in-
serted ‘‘, or by another provider which demonstrates to
the satisfaction of the Secretary that a significant por-
tion of its patients are low-income (and requests that
payment be made under this clause),’’.
Subsec. (a)(2)(D). Pub. L. 98–369, § 2303(b)(2)–(4), added
subpar. (D).
Subsec. (a)(3). Pub. L. 98–369, § 2323(b)(1), substituted
‘‘section 1395x(s)(10)(A) of this title’’ for ‘‘section
1395x(s)(10) of this title’’.
Subsec. (a)(5). Pub. L. 98–369, § 2305(b), struck out par.
(5) which related to payment of reasonable costs for
preadmission diagnostic services described in section
1395x(s)(2)(C) of this title furnished to an individual by
the outpatient department of a hospital within seven
days of such individual’s admission to the same hos-
pital as an inpatient or to another hospital.
Subsec. (b)(1). Pub. L. 98–369, § 2323(b)(2), substituted
‘‘section 1395x(s)(10)(A) of this title’’ for ‘‘section
1395x(s)(10) of this title’’.
Subsec. (b)(3). Pub. L. 98–369, § 2305(d), substituted
‘‘subsection (a)(1)(F)’’ for ‘‘subsection (a)(1)(G)’’.
Subsec. (b)(4). Pub. L. 98–369, § 2303(c), added par. (4).
Subsec. (f). Pub. L. 98–369, § 2321(d)(4)(A), transferred
subsec. (f) to part C of this subchapter and redesignated
its provisions as section 1889 of the Social Security Act,
which is classified to section 1395zz of this title.
Subsec. (h). Pub. L. 98–369, § 2303(d), amended subsec.
(h) generally, substituting provisions directing the Sec-
retary to establish fee schedules for clinical diagnostic
laboratory tests at a percentage of the prevailing
charge level and nominal fees to cover costs in col-
lecting samples and authorizing the Secretary to make
adjustments in the fee schedule, setting forth the re-
cipients of payments, and authorizing the Secretary to
establish a negotiated payment rate for provision au-
thorizing the Secretary to establish a negotiated rate
of payment with the laboratory which would be consid-
ered the full charge for such tests.
Subsec. (h)(5)(C). Pub. L. 98–617, § 3(b)(3), inserted a
comma before ‘‘under the procedure described in sec-
tion’’.
Subsec. (i)(3). Pub. L. 98–369, § 2305(d), substituted
‘‘subsection (a)(1)(F)’’ for ‘‘subsection (a)(1)(G)’’.
Subsec. (k). Pub. L. 98–369, § 2323(b)(4), added subsec.
(k).
1982—Subsec. (a)(1)(B). Pub. L. 97–248, § 112(a)(1), sub-
stituted provisions that with respect to items and serv-
ices described in section 1395x(s)(10) of this title,
amounts paid shall be 100 percent of reasonable charges
for such items and services for provision that with re-
spect to expenses incurred for radiological or patholog-
ical services for which payment could be made under
this part, furnished to any inpatient of a hospital by a
physician in field of radiology or pathology who had in
effect an agreement with Secretary by which the physi-
cian agreed to accept an assignment (as provided for in
section 1395u(b)(3)(B)(ii) of this title) for all physicians’
services furnished by him to hospital inpatients en-
rolled under this part, the amounts paid would be equal
to 100 percent of the reasonable charges for such serv-
ices.
Subsec. (a)(1)(H). Pub. L. 97–248, § 112(a)(2), (3), struck
out subpar. (H) which provided that, with respect to
items and services described in section 1395x(s)(10) of
this title, the amount of benefits paid would be 100 per-
cent of reasonable charges for such items and services.
Subsec. (a)(2)(B). Pub. L. 97–248, § 101(c)(2), inserted
‘‘and except as may be provided in section 1395ww of
this title’’.
Subsec. (b)(1). Pub. L. 97–248, § 112(b), struck out sub-
par. (A) provision that total amount of expenses shall
not include expenses incurred for radiological or patho-
logical services furnished an individual as an inpatient
of a hospital by a physician in field of radiology or pa-
thology who has an agreement with Secretary by which
physician agrees to accept an assignment (as provided
for in section 1395u(b)(3)(B)(ii) of this title) for all phy-
sicians’ services furnished by him to hospital inpa-
tients under this part, and redesignated subpar. (B) pro-
visions as par. (1).
Subsec. (i)(1). Pub. L. 97–248, § 148(d), struck out re-
quirement of consultation with National Professional
Standards Review Council.
Subsec. (j). Pub. L. 97–248, § 117(a)(2), added subsec. (j).
1981—Subsec. (a)(2)(A). Pub. L. 97–35, § 2106(a), sub-
stituted provisions that with respect to home health
services and to items and services described in section
1395x(s)(10) of this title, the lesser of reasonable cost of
such services as determined under section 1395x(v) of
this title or customary charges with respect to such
services, or if such services are furnished by a public
provider of services free of charge or at nominal
charges to the public, the amount determined in ac-
cordance with section 1395f(b)(2) of this title for provi-
sions that with respect to home health services and to
items and services described in section 1395x(s)(10) of
this title, the reasonable cost of such services, as deter-
mined under section 1395x(v) of this title.
Subsec. (a)(2)(B). Pub. L. 97–35, § 2106(a), substituted
new formula in cls. (i) to (iii) with respect to other
services for provisions providing for reasonable costs of
such services less the amount a provider may charge as
described in section 1395cc(a)(2)(A) of this title and that
in no case may payment for such other services exceed
80 percent of such costs.
Subsec. (b). Pub. L. 97–35, §§ 2133(a), 2134(a), redesig-
nated pars. (2) to (4) as (1) to (3), and struck out former
par. (1), which provided that amount of deductible for
such calendar year as so determined shall first be re-
duced by amount of any expenses incurred by such indi-
vidual in last three months of preceding calendar year
and applied toward such individual’s deductible under
this section for such preceding year.
Pub. L. 97–35, § 2134(a), substituted ‘‘by a deductible of
$75’’ for ‘‘by a deductible of $60’’.
1980—Subsec. (a)(1)(B). Pub. L. 96–499, § 943(a), inserted
‘‘who has in effect an agreement with the Secretary by
which the physician agrees to accept an assignment (as
provided for in section 1395u(b)(3)(B)(ii) of this title) for
all physicians’ services furnished by him to hospital in-
patients enrolled under this part’’ after ‘‘radiology or
pathology’’.
Subsec. (a)(1)(D). Pub. L. 96–499, § 918(a)(4), sub-
stituted ‘‘subsection (h)’’ for ‘‘subsection (g)’’.
Page 3079
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
Subsec. (a)(1)(F). Pub. L. 96–499, § 932(a)(1)(B), added
subpar. (F).
Subsec. (a)(1)(G). Pub. L. 96–499, § 934(d)(1), added sub-
par. (G).
Subsec. (a)(1)(H). Pub. L. 96–611, § 1(b)(1)(A), (B), added
subpar. (H).
Subsec. (a)(2). Pub. L. 96–611, § 1(b)(1)(C), inserted in
subpar. (A) ‘‘and to items and services described in sec-
tion 1395x(s)(10) of this title’’.
Pub. L. 96–499, § 942, authorized payment of reasonable
cost of home health services and prescribed formulae
for determining payment amounts for services other
than home health services.
Subsec. (a)(3). Pub. L. 96–611, § 1(b)(1)(D), inserted
‘‘(other than for items and services described in section
1395x(s)(10) of this title)’’.
Pub. L. 96–499, § 942, prescribed a formula for deter-
mining payment amounts for services described in sub-
pars. (D) and (E) of section 1395k(a)(2) of this title.
Subsec. (a)(4), (5). Pub. L. 96–499, § 942, added pars. (4)
and (5).
Subsec. (b)(2). Pub. L. 96–611, § 1(b)(2), inserted ‘‘(A)’’
after ‘‘expenses incurred’’ and added subpar. (B).
Pub. L. 96–499, § 943(a), inserted ‘‘who has in effect an
agreement with the Secretary by which the physician
agrees to accept an assignment (as provided for in sec-
tion 1395u(b)(3)(B)(ii) of this title) for all physicians’
services furnished by him to hospital inpatients en-
rolled under this part’’.
Subsec. (b)(3). Pub. L. 96–499, § 930(h)(2), added par. (3).
Subsec. (b)(4). Pub. L. 96–499, § 934(d)(3), added par. (4).
Subsec. (g). Pub. L. 96–499, § 935(a), substituted ‘‘$500’’
for ‘‘$100’’.
Subsec. (h). Pub. L. 96–473 redesignated subsec. (g) as
added by section 279(b) of Pub. L. 92–603 as (h), which
for purposes of codification had been editorially set out
as subsec. (h), thereby requiring no change in text. See
1972 Amendment note below.
Subsec. (i). Pub. L. 96–499, § 934(b), added subsec. (i).
1978—Subsec. (a)(1)(E). Pub. L. 95–292, § 4(b)(2), added
subpar. (E).
Subsec. (a)(2). Pub. L. 95–292, § 4(c), inserted ‘‘(unless
otherwise specified in section 1395rr of this title)’’ after
‘‘and with respect to other services’’ in provisions pre-
ceding subpar. (A).
1977—Subsec. (a)(2). Pub. L. 95–210, § 1(b)(2), inserted
parenthetical provisions preceding subpar. (A) except-
ing those services described in subpar. (D) of section
1395k(a)(2) of this title.
Subsec. (a)(3). Pub. L. 95–210, § 1(b)(1), (3), (4), added
par. (3).
Subsec. (f)(1). Pub. L. 95–142 substituted provisions re-
lating to determinations by Secretary with respect to
presumptions regarding purchase price or practicality
of buying or renting durable medical equipment, for
provisions relating to purchase price of durable medical
equipment authorized to be paid by Secretary.
Subsec. (f)(2). Pub. L. 95–142 substituted provisions re-
lating to waiver of coinsurance amount in purchase of
used durable medical equipment, for provisions relating
to reimbursement procedures established by Secretary
in cases of rental of durable medical equipment.
Subsec. (f)(3), (4). Pub. L. 95–142 added pars. (3) and
(4).
1972—Subsec. (a). Pub. L. 92–603, § 226(c)(2), inserted
reference to section 1395mm of this title in provisions
preceding par. (1).
Subsec. (a)(1). Pub. L. 92–603, §§ 211(c)(4), 279(a), added
subpars. (C) and (D).
Subsec. (a)(2). Pub. L. 92–603, §§ 233(b), 251(a)(3),
299K(a), substituted subpars. (A) and (B) for provisions
relating to the amount payable by reference to section
1395x(v) of this title, added subpar. (C), and in provi-
sions preceding subpar. (A), inserted ‘‘with respect to
home health services, 100 percent, and with respect to
other services,’’ before ‘‘80 percent’’.
Subsec. (b). Pub. L. 92–603, § 204(a), substituted ‘‘$60’’
for ‘‘$50’’.
Subsec. (f). Pub. L. 92–603, § 245(d), designated existing
provisions as par. (1)(A) and added par. (1)(B) and (2).
Subsec. (g). Pub. L. 92–603, § 251(a)(2), added subsec.
(g).
Subsec. (h). Pub. L. 92–603, § 279(b), added subsec. (h).
Subsec. was in the original (g) and was changed to ac-
commodate subsec. (g) as added by section 251(a)(2) of
Pub. L. 92–603.
1968—Subsec. (a)(1). Pub. L. 90–248, § 131(a)(1), (2), des-
ignated existing provisions as subpar. (A) and added
subpar. (B).
Subsec. (b). Pub. L. 90–248, §§ 129(c)(7), 131(b), struck
out reference in par. (1) to expenses regarded under
former par. (2) as incurred for services furnished in last
three months of preceding year, struck out former par.
(2) which provided that amount of any deduction im-
posed by section 1395e(a)(2)(A) of this title for out-
patient hospital diagnostic services furnished in any
calendar year is to be regarded as an incurred expense
for such year; and added par. (2).
Pub. L. 90–248, § 135(c), inserted last sentence pro-
viding that there shall be a deductible equal to ex-
penses incurred for first three pints of whole blood (or
equivalent quantities of packed red blood cells as de-
fined under regulations) furnished to an individual dur-
ing a calendar year which deductible is to be appro-
priately reduced to extent that such blood has been re-
placed, and such blood will be deemed to have been re-
placed when institution or person furnishing such blood
is given one pint of blood for each pint of blood (or
equivalent quantities of packed red blood cells) fur-
nished individual to which three pint deductible ap-
plies.
Subsec. (d). Pub. L. 90–248, § 129(c)(8), struck out ref-
erence to subsection (a)(2)(A) of section 1395e of this
title.
Subsec. (f). Pub. L. 90–248, § 132(b), added subsec. (f).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 2022 AMENDMENT
Pub. L. 117–328, div. FF, title IV, § 4121(c), Dec. 29,
2022, 136 Stat. 5903, provided that: ‘‘The amendments
made by this section [amending this section and sec-
tions 1395u, 1395x, and 1395yy of this title] shall apply
with respect to services furnished on or after January
1, 2024.’’
Amendment by section 4124(b)(3) of Pub. L. 117–328 ap-
plicable with respect to items and services furnished on
or after Jan. 1, 2024, see section 4124(d) of Pub. L.
117–328, set out as a note under section 1395k of this sec-
tion.
EFFECTIVE DATE OF 2021 AMENDMENT
Pub. L. 117–7, § 2(a)(2), Apr. 14, 2021, 135 Stat. 252, pro-
vided that: ‘‘The amendments made by this subsection
[amending this section] shall take effect as if included
in the enactment of the Consolidated Appropriations
Act, 2021 (Public Law 116–260).’’
EFFECTIVE DATE OF 2020 AMENDMENT
Pub. L. 116–260, div. CC, title I, § 114(c), Dec. 27, 2020,
134 Stat. 2948, provided that: ‘‘The amendments made
by this section [amending this section and section
1395w–4 of this title] shall take effect on the date of the
enactment of this Act [Dec. 27, 2020].’’
Pub. L. 116–260, div. CC, title I, § 125(g), Dec. 27, 2020,
134 Stat. 2966, provided that: ‘‘The amendments made
by this section [amending this section and sections
1395m, 1395x, 1395aa, 1395cc, and 1395dd of this title]
shall apply to items and services furnished on or after
January 1, 2023.’’
Pub. L. 116–136, div. A, title III, § 3713(d), Mar. 27, 2020,
134 Stat. 424, provided that: ‘‘The amendments made by
this section [amending this section and sections
1395w–22 and 1395x of this title] shall take effect on the
date of enactment of this Act [Mar. 27, 2020] and shall
apply with respect to a COVID–19 vaccine beginning on
the date that such vaccine is licensed under section 351
of the Public Health Service Act (42 U.S.C. 262).’’
Page 3080
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
EFFECTIVE DATE OF 2016 AMENDMENT
Pub. L. 114–255, div. A, title V, § 5012(d), Dec. 13, 2016,
130 Stat. 1202, as amended by Pub. L. 115–123, div. E,
title IV, § 50401(b)(2), Feb. 9, 2018, 132 Stat. 217, provided
that: ‘‘The amendments made by this section [amend-
ing this section and sections 1395m, 1395u, and 1395x of
this title] shall apply to items and services furnished
on or after January 1, 2021, except that the amend-
ments made by paragraphs (1) and (2) of subsection (c)
shall apply to items and services furnished on or after
January 1, 2019.’’
Pub. L. 114–255, div. C, title XVI, § 16001(b), Dec. 13,
2016, 130 Stat. 1325, provided that: ‘‘The amendments
made by this section [amending this section] shall be
effective as if included in the enactment of section 603
of the Bipartisan Budget Act of 2015 (Public Law
114–74).’’
Pub. L. 114–255, div. C, title XVI, § 16002(c), Dec. 13,
2016, 130 Stat. 1326, provided that: ‘‘The amendments
made by this section [amending this section] shall be
effective as if included in the enactment of section 603
of the Bipartisan Budget Act of 2015 (Public Law
114–74).’’
EFFECTIVE DATE OF 2015 AMENDMENT
Pub. L. 114–113, div. O, title V, § 504(d), Dec. 18, 2015,
129 Stat. 3023, provided that: ‘‘The amendments made
by this section [amending this section and sections
1395m and 1395x of this title] shall apply to items fur-
nished on or after January 1, 2017.’’
Pub. L. 114–10, title II, § 202(b)(2), Apr. 16, 2015, 129
Stat. 144, provided that: ‘‘The amendments made by
this subsection [amending this section] shall apply
with
respect
to
requests
described
in
section
1833(g)(5)(C)(i) of the Social Security Act (42 U.S.C.
1395l(g)(5)(C)(i)) with respect to which the Secretary of
Health and Human Services has not conducted medical
review under such section by a date (not later than 90
days after the date of the enactment of this Act [Apr.
16, 2015]) specified by the Secretary.’’
EFFECTIVE DATE OF 2012 AMENDMENT
Pub. L. 112–96, title III, § 3005(e), Feb. 22, 2012, 126
Stat. 189, provided that: ‘‘The requirement of subpara-
graph (B) of section 1833(g)(5) of the Social Security
Act (42 U.S.C. 1395l(g)(5)), as added by subsection (a),
shall apply to services furnished on or after March 1,
2012.’’
EFFECTIVE DATE OF 2010 AMENDMENT
Pub. L. 111–148, title IV, § 4103(e), Mar. 23, 2010, 124
Stat. 557, provided that: ‘‘The amendments made by
this section [amending this section and sections
1395w–4, 1395x, and 1395y of this title] shall apply to
services furnished on or after January 1, 2011.’’
Pub. L. 111–148, title IV, § 4104(d), Mar. 23, 2010, 124
Stat. 558, provided that: ‘‘The amendments made by
this section [amending this section and section 1395x of
this title] shall apply to items and services furnished
on or after January 1, 2011.’’
EFFECTIVE DATE OF 2008 AMENDMENT
Pub. L. 110–275, title I, § 101(c), July 15, 2008, 122 Stat.
2498, provided that: ‘‘The amendments made by this
section [amending this section and sections 1395x and
1395y of this title] shall apply to services furnished on
or after January 1, 2009.’’
Amendment by section 143(b)(2), (3), of Pub. L. 110–275
applicable to services furnished on or after July 1, 2009,
see section 143(c) of Pub. L. 110–275, set out as a note
under section 1395k of this title.
Pub. L. 110–275, title I, § 145(a)(3), July 15, 2008, 122
Stat. 2547, provided that: ‘‘The amendments made by
this subsection [amending this section and section
1395w–3 of this title] shall take effect on the date of the
enactment of this Act [July 15, 2008].’’
EFFECTIVE DATE OF 2006 AMENDMENT
Pub. L. 109–432, div. B, title I, § 109(c), Dec. 20, 2006, 120
Stat. 2985, provided that: ‘‘The amendments made by
this section [amending this section and section 1395ww
of this title] shall apply to payment for services fur-
nished on or after January 1, 2009.’’
Pub. L. 109–171, title V, § 5112(f), Feb. 8, 2006, 120 Stat.
44, provided that: ‘‘The amendments made by this sec-
tion [amending this section and sections 1395w–4, 1395x,
and 1395y of this title] shall apply to services furnished
on or after January 1, 2007.’’
Pub. L. 109–171, title V, § 5113(c), Feb. 8, 2006, 120 Stat.
44, provided that: ‘‘The amendments made by this sec-
tion [amending this section and section 1395m of this
title] shall apply to services furnished on or after Janu-
ary 1, 2007.’’
EFFECTIVE DATE OF 2003 AMENDMENT
Amendment by section 237(a) of Pub. L. 108–173 appli-
cable to services provided on or after Jan. 1, 2006, and
contract years beginning on or after such date, see sec-
tion 237(e) of Pub. L. 108–173, set out as a note under
section 1320a–7b of this title.
Pub. L. 108–173, title IV, § 411(a)(2), Dec. 8, 2003, 117
Stat. 2274, provided that: ‘‘The amendment made by
paragraph (1)(B) [amending this section] shall apply
with respect to cost reporting periods beginning on and
after January 1, 2004.’’
Pub. L. 108–173, title IV, § 413(b)(2), Dec. 8, 2003, 117
Stat. 2277, provided that: ‘‘The amendments made by
paragraph (1) [amending this section] shall apply to
physicians’ services furnished on or after January 1,
2005.’’
Pub. L. 108–173, title VI, § 614(c), Dec. 8, 2003, 117 Stat.
2306, provided that: ‘‘The amendments made by this
section [amending this section] shall apply—
‘‘(1) in the case of screening mammography, to
services furnished on or after the date of the enact-
ment of this Act [Dec. 8, 2003]; and
‘‘(2) in the case of diagnostic mammography, to
services furnished on or after January 1, 2005.’’
Pub. L. 108–173, title VI, § 621(a)(6), Dec. 8, 2003, 117
Stat. 2310, provided that: ‘‘The amendments made by
this subsection [amending this section] shall apply to
items and services furnished on or after January 1,
2004.’’
Pub. L. 108–173, title VI, § 627(c), Dec. 8, 2003, 117 Stat.
2321, provided that: ‘‘The amendments made by this
section [amending this section and sections 1395m and
1395u of this title] shall apply to items furnished on or
after January 1, 2005.’’
Pub. L. 108–173, title VI, § 642(c), Dec. 8, 2003, 117 Stat.
2322, provided that: ‘‘The amendments made by this
section [amending this section and section 1395x of this
title] shall apply to items furnished administered [sic]
on or after January 1, 2004.’’
EFFECTIVE DATE OF 2000 AMENDMENT
Pub. L. 106–554, § 1(a)(6) [title I, § 105(e)], Dec. 21, 2000,
114 Stat. 2763, 2763A–472, provided that: ‘‘The amend-
ments made by this section [amending this section and
sections 1395u and 1395x of this title] shall apply to
services furnished on or after January 1, 2002.’’
Pub. L. 106–554, § 1(a)(6) [title I, § 111(a)(2)], Dec. 21,
2000, 114 Stat. 2763, 2763A–473, provided that: ‘‘The
amendment made by paragraph (1) [amending this sec-
tion] shall apply with respect to services furnished on
or after April 1, 2001.’’
Pub. L. 106–554, § 1(a)(6) [title II, § 201(c)], Dec. 21, 2000,
114 Stat. 2763, 2763A–481, provided that: ‘‘The amend-
ment made—
‘‘(1) by subsection (a) [amending section 1395m of
this title] shall apply to services furnished on or after
the date of the enactment of BBRA [Pub. L. 106–113,
§ 1000(a)(6), approved Nov. 29, 1999];
‘‘(2) by subsection (b)(1) [amending this section]
shall apply as if included in the enactment of section
403(e)(1) of BBRA (113 Stat. 1501A–371) [Pub. L. 106–113,
§ 1000(a)(6) [title IV, § 403(e)(1)]]; and
‘‘(3) by subsection (b)(2) [amending provisions set
out as a note under section 1395m of this title] shall
apply as if included in the enactment of section
Page 3081
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
403(d)(2) of BBRA (113 Stat. 1501A–371) [Pub. L.
106–113, § 1000(a)(6) [title IV, § 403(d)(2)], set out as a
note under section 1395m of this title].’’
Pub. L. 106–554, § 1(a)(6) [title II, § 205(c)], Dec. 21, 2000,
114 Stat. 2763, 2763A–483, provided that: ‘‘The amend-
ments made by this section [amending this section and
section 1395m of this title] shall apply to services fur-
nished on or after the date of the enactment of this Act
[Dec. 21, 2000].’’
Pub. L. 106–554, § 1(a)(6) [title II, § 223(e)], Dec. 21, 2000,
114 Stat. 2763, 2763A–490, provided that: ‘‘The amend-
ments made by subsections (b) and (c) [amending this
section and section 1395m of this title] shall be effec-
tive for services furnished on or after October 1, 2001.’’
Pub. L. 106–554, § 1(a)(6) [title II, § 224(b)], Dec. 21, 2000,
114 Stat. 2763, 2763A–490, provided that: ‘‘The amend-
ment made by subsection (a) [amending this section]
shall apply to services furnished on or after July 1,
2001.’’
Pub. L. 106–554, § 1(a)(6) [title IV, § 401(b)(2)], Dec. 21,
2000, 114 Stat. 2763, 2763A–503, provided that: ‘‘The
amendments made by paragraph (1) [amending this sec-
tion] shall take effect as if included in the enactment
of BBA [Pub. L. 105–33].’’
Pub. L. 106–554, § 1(a)(6) [title IV, § 402(c)], Dec. 21,
2000, 114 Stat. 2763, 2763A–505, provided that: ‘‘The
amendments made by this section [amending this sec-
tion] take effect on the date of the enactment of this
Act [Dec. 21, 2000].’’
Pub. L. 106–554, § 1(a)(6) [title IV, § 403(b)], Dec. 21,
2000, 114 Stat. 2763, 2763A–506, provided that: ‘‘The
amendment made by subsection (a) [amending this sec-
tion] shall take effect as if included in the enactment
of BBRA [Pub. L. 106–113, § 1000(a)(6)].’’
Pub. L. 106–554, § 1(a)(6) [title IV, § 405(b)], Dec. 21,
2000, 114 Stat. 2763, 2763A–507, provided that: ‘‘The
amendments made by subsection (a) [amending this
section] shall apply as if included in the enactment of
section 202 of BBRA [Pub. L. 106–113, § 1000(a)(6) [title II,
§ 202]] (113 Stat. 1501A–342).’’
Pub. L. 106–554, § 1(a)(6) [title IV, § 406(b)], Dec. 21,
2000, 114 Stat. 2763, 2763A–508, provided that: ‘‘The
amendment made by subsection (a) [amending this sec-
tion] shall apply to devices furnished on or after April
1, 2001.’’
Pub. L. 106–554, § 1(a)(6) [title IV, § 430(c)], Dec. 21,
2000, 114 Stat. 2763, 2763A–525, provided that: ‘‘The
amendments made by this section [amending this sec-
tion and section 1395x of this title] apply to items and
services furnished on or after July 1, 2001.’’
EFFECTIVE DATE OF 1999 AMENDMENT
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 201(h)(2)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–340, provided that:
‘‘The Secretary of Health and Human Services shall
first conduct the annual review under the amendment
made by paragraph (1)(A) [amending this section] in
2001 for application in 2002 and the amendment made by
paragraph (1)(B) [amending this section] takes effect on
the date of the enactment of this Act [Nov. 29, 1999].’’
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 201(m)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–341, provided that:
‘‘Except as provided in this section, the amendments
made by this section [amending this section and sec-
tions 1395m and 1395x of this title] shall be effective as
if included in the enactment of BBA [the Balanced
Budget Act of 1997, Pub. L. 105–33].’’
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 202(b)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–344, provided that:
‘‘The amendments made by this section [amending this
section] shall be effective as if included in the enact-
ment of BBA [the Balanced Budget Act of 1997, Pub. L.
105–33].’’
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 204(c)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–345, provided that:
‘‘The amendments made by this section [amending this
section] apply as if included in the enactment of BBA
[the Balanced Budget Act of 1997, Pub. L. 105–33] and
shall only apply to procedures performed for which pay-
ment is made on the basis of the prospective payment
system under section 1833(t) of the Social Security Act
[42 U.S.C. 1395l(t)].’’
Amendment by section 1000(a)(6) [title III, § 321(g)(2),
(k)(2)] of Pub. L. 106–113 effective as if included in the
enactment of the Balanced Budget Act of 1997, Pub. L.
105–33, except as otherwise provided, see section
1000(a)(6) [title III, § 321(m)] of Pub. L. 106–113, set out as
a note under section 1395d of this title.
Amendment by section 1000(a)(6) [title IV, § 401(b)(1)]
of Pub. L. 106–113 effective Jan. 1, 2000, see section
1000(a)(6) [title IV, § 401(c)] of Pub. L. 106–113, set out as
a note under section 1395i–4 of this title.
Pub. L. 106–113, div. B, § 1000(a)(6) [title IV, § 403(e)(2)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–371, provided that:
‘‘The amendments made by paragraph (1) [amending
this section] shall apply to services furnished on or
after the date of the enactment of this Act [Nov. 29,
1999].’’
EFFECTIVE DATE OF 1997 AMENDMENT
Pub. L. 105–33, title IV, § 4002(j)(1)(B), Aug. 5, 1997, 111
Stat. 330, provided that: ‘‘The amendment made by sub-
paragraph (A) [amending this section] applies to new
contracts entered into after the date of enactment of
this Act [Aug. 5, 1997] and, with respect to contracts in
effect as of such date, shall apply to payment for serv-
ices furnished after December 31, 1998.’’
Pub. L. 105–33, title IV, § 4101(d), Aug. 5, 1997, 111 Stat.
360, provided that: ‘‘The amendments made by this sec-
tion [amending this section and section 1395m of this
title] shall apply to items and services furnished on or
after January 1, 1998.’’
Pub. L. 105–33, title IV, § 4102(e), Aug. 5, 1997, 111 Stat.
361, provided that: ‘‘The amendments made by this sec-
tion [amending this section and sections 1395w–4, 1395x,
and 1395y of this title] shall apply to items and services
furnished on or after January 1, 1998.’’
Pub. L. 105–33, title IV, § 4103(e), Aug. 5, 1997, 111 Stat.
362, provided that: ‘‘The amendments made by this sec-
tion [amending this section and sections 1395w–4, 1395x,
and 1395y of this title] shall apply to items and services
furnished on or after January 1, 2000.’’
Pub. L. 105–33, title IV, § 4104(e), Aug. 5, 1997, 111 Stat.
366, provided that: ‘‘The amendments made by this sec-
tion [amending this section and sections 1395m,
1395w–4, 1395x, and 1395y of this title] shall apply to
items and services furnished on or after January 1,
1998.’’
Amendment by section 4201(c)(1) of Pub. L. 105–33 ap-
plicable to services furnished on or after Oct. 1, 1997,
see section 4201(d) of Pub. L. 105–33, set out as a note
under section 1395f of this title.
Pub. L. 105–33, title IV, § 4205(a)(1)(B), Aug. 5, 1997, 111
Stat. 376, provided that: ‘‘The amendment made by sub-
paragraph (A) [amending this section] applies to serv-
ices furnished on or after January 1, 1998.’’
Pub. L. 105–33, title IV, § 4315(c), Aug. 5, 1997, 111 Stat.
390, provided that: ‘‘The amendments made by this sec-
tion [amending this section and section 1395u of this
title] to the extent such amendments substitute fee
schedules for reasonable charges, shall apply to par-
ticular services as of the date specified by the Sec-
retary of Health and Human Services.’’
Amendment by section 4432(b)(5)(C) of Pub. L. 105–33
applicable to items and services furnished on or after
July 1, 1998, see section 4432(d) of Pub. L. 105–33, set out
as a note under section 1395i–3 of this title.
Amendment by section 4511(b) of Pub. L. 105–33 appli-
cable with respect to services furnished and supplies
provided on and after Jan. 1, 1998, see section 4511(e) of
Pub. L. 105–33, set out as a note under section 1395k of
this title.
Pub. L. 105–33, title IV, § 4512(d), Aug. 5, 1997, 111 Stat.
444, provided that: ‘‘The amendments made by this sec-
tion [amending this section and sections 1395u and
1395x of this title] shall apply with respect to services
furnished and supplies provided on and after January 1,
1998.’’
Pub. L. 105–33, title IV, § 4521(c), Aug. 5, 1997, 111 Stat.
444, provided that: ‘‘The amendments made by this sec-
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§ 1395l
tion [amending this section] shall apply to services fur-
nished during portions of cost reporting periods occur-
ring on or after October 1, 1997.’’
Pub. L. 105–33, title IV, § 4523(d)(1)(A)(ii), Aug. 5, 1997,
111 Stat. 449, provided that: ‘‘The amendment made by
clause (i) [amending this section] shall apply to serv-
ices furnished on or after January 1, 1999.’’
Pub. L. 105–33, title IV, § 4531(b)(3), Aug. 5, 1997, 111
Stat. 452, provided that: ‘‘The amendments made by
this subsection [amending this section and section
1395m of this title] shall apply to services furnished on
or after January 1, 2000.’’
Pub. L. 105–33, title IV, § 4541(e), Aug. 5, 1997, 111 Stat.
457, provided that:
‘‘(1) The amendments made by subsections (a)(1),
(a)(2), and (b) [amending this section and sections
1395m and 1395y of this title] apply to services furnished
on or after January 1, 1998, including portions of cost
reporting periods occurring on or after such date, ex-
cept that section 1834(k) of the Social Security Act [42
U.S.C. 1395m(k)] (as added by subsection (a)(2)) shall
not apply to services described in section 1833(a)(8)(B)
of such Act [42 U.S.C. 1395l(a)(8)(B)] (as added by sub-
section (a)(1)) that are furnished during 1998.
‘‘(2) The amendments made by subsections (a)(3) and
(c) [amending this section and section 1395cc of this
title] apply to services furnished on or after January 1,
1999.
‘‘(3) The amendments made by subsection (d)(1)
[amending this section] apply to expenses incurred on
or after January 1, 1999.’’
Pub. L. 105–33, title IV, § 4556(d), Aug. 5, 1997, 111 Stat.
463, provided that: ‘‘The amendments made by sub-
sections (a) and (b) [amending this section and section
1395u of this title] shall apply to drugs and biologicals
furnished on or after January 1, 1998.’’
Amendment by section 4603(c)(2)(A) of Pub. L. 105–33
applicable to cost reporting periods beginning on or
after Oct. 1, 1999, except as otherwise provided, see sec-
tion 4603(d) of Pub. L. 105–33, set out as an Effective
Date note under section 1395fff of this title.
EFFECTIVE DATE OF 1994 AMENDMENT
Pub. L. 103–432, title I, § 123(f)(1), (2), Oct. 31, 1994, 108
Stat. 4412, provided that:
‘‘(1) ENFORCEMENT; MISCELLANEOUS
AND
TECHNICAL
AMENDMENTS.—The amendments made by subsections
(a) and (e) [amending this section and section 1395w–4 of
this title] shall apply to services furnished on or after
the date of the enactment of this Act [Oct. 31, 1994]; ex-
cept that the amendments made by subsection (a)
[amending section 1395w–4 of this title] shall not apply
to services of a nonparticipating supplier or other per-
son furnished before January 1, 1995.
‘‘(2) PRACTITIONERS.—The amendments made by sub-
section (b) [amending this section and section 1395u of
this title] shall apply to services furnished on or after
January 1, 1995.’’
Pub. L. 103–432, title I, § 141(c)(2), Oct. 31, 1994, 108
Stat. 4425, provided that: ‘‘The amendments made by
paragraph (1) [amending this section] shall take effect
as if included in the enactment of OBRA–1990 [Pub. L.
101–508].’’
Amendment by section 147(a), (e)(2), (3), (f)(6)(C), (D)
of Pub. L. 103–432 effective as if included in the enact-
ment of Pub. L. 101–508, see section 147(g) of Pub. L.
103–432, set out as a note under section 1320a–3a of this
title.
Pub. L. 103–432, title I, § 147(d)(1), (2), Oct. 31, 1994, 108
Stat. 4429, provided that the amendment made by that
section is effective as if included in the enactment of
Pub. L. 101–239.
Amendment by section 156(a)(2)(B) of Pub. L. 103–432
applicable to services provided on or after Oct. 31, 1994,
see section 156(a)(3) of Pub. L. 103–432, set out as a note
under section 1320c–3 of this title.
EFFECTIVE DATE OF 1993 AMENDMENT
Pub. L. 103–66, title XIII, § 13532(b), Aug. 10, 1993, 107
Stat. 587, provided that: ‘‘The amendments made by
subsection (a) [amending this section] shall apply to
portions of cost reporting periods beginning on or after
January 1, 1994.’’
Pub. L. 103–66, title XIII, § 13544(b)(3), Aug. 10, 1993, 107
Stat. 590, provided that: ‘‘The amendments made by
this subsection [amending this section and section
1395m of this title] shall apply to items furnished on or
after January 1, 1994.’’
Pub. L. 103–66, title XIII, § 13555(b), Aug. 10, 1993, 107
Stat. 592, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] shall apply to serv-
ices furnished on or after January 1, 1994.’’
EFFECTIVE DATE OF 1990 AMENDMENT
Pub. L. 101–508, title IV, § 4104(d), Nov. 5, 1990, 104
Stat. 1388–59, provided that: ‘‘The amendments made by
this section [amending this section and sections 1395m
and 1395w–4 of this title] shall apply to services fur-
nished on or after January 1, 1991.’’
Amendment by section 4153(a)(2)(B), (C) of Pub. L.
101–508 applicable to items furnished on or after Jan. 1,
1991, see section 4153(a)(3) of Pub. L. 101–508, set out as
a note under section 1395k of this title.
Pub. L. 101–508, title IV, § 4154(b)(2), Nov. 5, 1990, 104
Stat. 1388–85, provided that: ‘‘The amendments made by
paragraph (1) [amending this section] shall apply to
tests furnished on or after January 1, 1991.’’
Pub. L. 101–508, title IV, § 4154(c)(2), Nov. 5, 1990, 104
Stat. 1388–85, provided that: ‘‘The amendment made by
paragraph (1)(A) [amending this section] shall take ef-
fect as if included in the enactment of the Consolidated
Omnibus Budget Reconciliation Act of 1985 [Pub. L.
99–272], and the amendment made by paragraph (1)(B)
[amending this section] shall take effect as if included
in the enactment of the Omnibus Budget Reconcili-
ation Act of 1987 [Pub. L. 100–203].’’
Pub. L. 101–508, title IV, § 4154(e)(5), Nov. 5, 1990, 104
Stat. 1388–86, as amended by Pub. L. 103–432, title I,
§ 147(f)(2), Oct. 31, 1994, 108 Stat. 4431, provided that:
‘‘The amendments made by paragraphs (1)(A), (1)(B),
(2), and (4) [amending this section, section 1395w–2 of
this title, and provisions set out as a note below] shall
take effect as if included in the enactment of the Omni-
bus Budget Reconciliation Act of 1989 [Pub. L. 101–239],
and the amendment made by paragraph (1)(C) [amend-
ing this section] shall take effect January 1, 1991.’’
Amendment by section 4155(b)(2), (3) of Pub. L. 101–508
applicable to services furnished on or after Jan. 1, 1991,
see section 4155(e) of Pub. L. 101–508, set out as a note
under section 1395k of this title.
Amendment by section 4161(a)(3)(B) of Pub. L. 101–508
applicable to services furnished on or after Oct. 1, 1991,
see section 4161(a)(8) of Pub. L. 101–508, set out as a note
under section 1395k of this title.
Pub. L. 101–508, title IV, § 4163(e), Nov. 5, 1990, 104
Stat. 1388–100, as amended by Pub. L. 103–432, title I,
§ 147(f)(5)(B), Oct. 31, 1994, 108 Stat. 4431, provided that:
‘‘Except as provided in subsection (d)(3) [enacting pro-
visions set out as a note under section 1395y of this
title], the amendments made by this section [amending
this section and sections 1395m, 1395x, 1395y, 1395z,
1395aa, and 1395bb of this title] shall apply to screening
mammography performed on or after January 1, 1991.’’
Pub. L. 101–508, title IV, § 4206(e)(2), Nov. 5, 1990, 104
Stat. 1388–117, provided that: ‘‘The amendments made
by subsection (b) [amending this section and section
1395mm of this title] shall apply to contracts under sec-
tion 1876 of the Social Security Act [42 U.S.C. 1395mm]
and payments under section 1833(a)(1)(A) of such Act [42
U.S.C. 1395l(a)(1)(A)] as of first day of the first month
beginning more than 1 year after the date of the enact-
ment of this Act [Nov. 5, 1990].’’
EFFECTIVE DATE OF 1989 AMENDMENT
Pub. L. 101–239, title VI, § 6102(c)(2), Dec. 19, 1989, 103
Stat. 2185, provided that: ‘‘The amendments made by
paragraph (1) [amending this section] shall apply to
services furnished on or after January 1, 1991.’’
Pub. L. 101–239, title VI, § 6102(f)(3), Dec. 19, 1989, 103
Stat. 2189, provided that: ‘‘The amendments made by
Page 3083
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
this subsection [amending this section and section
1395m of this title] shall apply to services furnished on
or after January 1, 1991.’’
Pub. L. 101–239, title VI, § 6102(g), Dec. 19, 1989, 103
Stat. 2189, provided that: ‘‘Except as otherwise provided
in this section, this section, and the amendments made
by this section [enacting section 1395w–4 of this title,
amending this section and sections 1395m, 1395u, and
1395rr of this title, and enacting provisions set out as
notes under this section and sections 1395m, 1395u, and
1395w–4 of this title], shall take effect on the date of
the enactment of this Act [Dec. 19, 1989].’’
Pub. L. 101–239, title VI, § 6111(b)(2), Dec. 19, 1989, 103
Stat. 2214, as amended by Pub. L. 101–508, title IV,
§ 4154(e)(4), Nov. 5, 1990, 104 Stat. 1388–86, provided that:
‘‘The amendment made by paragraph (1) [amending this
section] shall apply with respect to clinical diagnostic
laboratory tests performed on or after May 1, 1990.’’
Pub. L. 101–239, title VI, § 6113(e), Dec. 19, 1989, 103
Stat. 2217, provided that: ‘‘The amendments made by
this section [amending this section and section 1395x of
this title], and the provisions of subsection (c) [set out
below], shall apply to services furnished on or after
July 1, 1990, and the amendments made by subsection
(d) [amending this section] shall apply to expenses in-
curred in a year beginning with 1990.’’
Pub. L. 101–239, title VI, § 6131(c), Dec. 19, 1989, 103
Stat. 2221, provided that:
‘‘(1) The amendments made by this section [amending
this section and section 1395x of this title] shall apply
with respect to therapeutic shoes and inserts furnished
on or after July 1, 1989.
‘‘(2) In applying the amendments made by this sec-
tion, the increase under subparagraph (C) of section
1833(o)(2) of the Social Security Act [42 U.S.C.
1395l(o)(2)(C)] shall apply to the dollar amounts speci-
fied under subparagraph (A) of such section (as amend-
ed by this section) in the same manner as the increase
would have applied to the dollar amounts specified
under subparagraph (A) of such section (as in effect be-
fore the date of the enactment of this Act [Dec. 19,
1989]).’’
Pub. L. 101–239, title VI, § 6133(b), Dec. 19, 1989, 103
Stat. 2222, provided that: ‘‘The amendment made by
subsection (a) [amending this section] shall apply to
services furnished on or after January 1, 1990.’’
Amendment by section 6204(b) of Pub. L. 101–239 effec-
tive with respect to referrals made on or after Jan. 1,
1992, see section 6204(c) of Pub. L. 101–239, set out as a
note under section 1395nn of this title.
Amendment by section 201(a) of Pub. L. 101–234 effec-
tive Jan. 1, 1990, see section 201(c) of Pub. L. 101–234, set
out as a note under section 1320a–7a of this title.
Amendment by section 202(a) of Pub. L. 101–234 effec-
tive Jan. 1, 1990, see section 202(b) of Pub. L. 101–234, set
out as a note under section 401 of this title.
EFFECTIVE DATE OF 1988 AMENDMENT
Pub. L. 100–647, title VIII, § 8422(b), Nov. 10, 1988, 102
Stat. 3802, provided that: ‘‘The amendment made by
subsection (a) [amending this section] shall become ef-
fective as if included in the amendment made by sec-
tion 9320(e)(2) of the Omnibus Budget Reconciliation
Act of 1986 [Pub. L. 99–509].’’
Amendment by Pub. L. 100–485 effective as if included
in the enactment of the Medicare Catastrophic Cov-
erage Act of 1988, Pub. L. 100–360, see section 608(g) of
Pub. L. 100–485, set out as a note under section 704 of
this title.
Amendment by section 202(b)(1)–(3) of Pub. L. 100–360
applicable to items dispensed on or after Jan. 1, 1990,
see section 202(m)(1) of Pub. L. 100–360, set out as a note
under section 1395u of this title.
Amendment by section 203(c)(1)(A)–(E) of Pub. L.
100–360 applicable to items and services furnished on or
after Jan. 1, 1990, see section 203(g) of Pub. L. 100–360,
set out as a note under section 1320c–3 of this title.
Amendment by section 204(d)(1) of Pub. L. 100–360 ap-
plicable to screening mammography performed on or
after Jan. 1, 1990, see section 204(e) of Pub. L. 100–360,
set out as a note under section 1395m of this title.
Amendment by section 205(c) of Pub. L. 100–360 appli-
cable to items and services furnished on or after Jan.
1, 1990, see section 205(f) of Pub. L. 100–360, set out as a
note under section 1395k of this title.
Except as specifically provided in section 411 of Pub.
L. 100–360, amendment by section 411(f)(2)(D), (8)(B)(i),
(C), (12)(A), (14), (g)(1)(E), (2)(D), (E), (3)(A)–(F), (4)(C),
(5), (h)(1)(A), (3)(B), (4)(B), (C), (7)(C), (D), (F), (i)(3),
(4)(B)–(C)(ii), (iv), and (vi) of Pub. L. 100–360, as it re-
lates to a provision in the Omnibus Budget Reconcili-
ation Act of 1987, Pub. L. 100–203, effective as if in-
cluded in the enactment of that provision in Pub. L.
100–203, see section 411(a) of Pub. L. 100–360, set out as
a Reference to OBRA; Effective Date note under section
106 of Title 1, General Provisions.
EFFECTIVE DATE OF 1987 AMENDMENT
Pub. L. 100–203, title IV, § 4043(c), Dec. 22, 1987, 101
Stat. 1330–86, provided that: ‘‘The amendments made by
this [sic] subsection (a) [amending this section] shall
apply with respect to services furnished in a rural area
(as defined in section 1886(d)(2)(D) of the Social Secu-
rity Act [42 U.S.C. 1395ww(d)(2)(D)]) on or after January
1, 1989, and to other services furnished on or after Janu-
ary 1, 1991.’’
Amendment by section 4045(c)(2)(A) of Pub. L. 100–203
applicable to items and services furnished on or after
Apr. 1, 1988, see section 4045(d) of Pub. L. 100–203, set
out as a note under section 1395u of this title.
Amendment by section 4049(a)(1) of Pub. L. 100–203 ap-
plicable to services performed on or after Apr. 1, 1989,
see section 4049(b)(2) of Pub. L. 100–203, as amended, set
out as a note under section 1395m of this title.
Pub. L. 100–203, title IV, § 4055(b), formerly § 4054(b), as
added and renumbered by Pub. L. 100–360, title IV,
§ 411(f)(12)(A), (14), July 1, 1988, 102 Stat. 781, provided
that: ‘‘The amendments made by subsection (a)
[amending this section] shall apply to services fur-
nished on or after April 1, 1988.’’
Amendment by section 4062(d)(3) of Pub. L. 100–203 ap-
plicable to covered items (other than oxygen and oxy-
gen equipment) furnished on or after Jan. 1, 1989, and to
oxygen and oxygen equipment furnished on or after
June 1, 1989, see section 4062(e) of Pub. L. 100–203, as
amended, set out as a note under section 1395f of this
title.
Pub. L. 100–203, title IV, § 4063(c), Dec. 22, 1987, 101
Stat. 1330–110, provided that: ‘‘The amendments made
by this section [amending this section and section 1395u
of this title] shall apply to items furnished on or after
July 1, 1988.’’
Pub. L. 100–203, title IV, § 4064(b)(3), Dec. 22, 1987, 101
Stat. 1330–110, provided that: ‘‘The amendments made
by paragraphs (1) and (2) [amending this section] shall
apply with respect to services furnished on or after
April 1, 1988.’’
Pub. L. 100–203, title IV, § 4064(c)(2), as added by Pub.
L. 100–360, title IV, § 411(g)(3)(F), July 1, 1988, 102 Stat.
784, provided that: ‘‘The amendment made by para-
graph (1) [amending this section] shall apply with re-
spect to diagnostic laboratory tests furnished on or
after April 1, 1988.’’
Pub. L. 100–203, title IV, § 4066(c), Dec. 22, 1987, 101
Stat. 1330–113, provided that: ‘‘The amendments made
by subsection (a) [amending this section] shall apply
with respect to outpatient hospital radiology services
furnished on or after October 1, 1988, and other diag-
nostic procedures performed on or after October 1,
1989.’’
Pub. L. 100–203, title IV, § 4067(c), Dec. 22, 1987, 101
Stat. 1330–113, provided that: ‘‘The amendment made by
subsection (a) [amending this section] shall apply to
services furnished on or after April 1, 1988.’’
Pub. L. 100–203, title IV, § 4068(c), Dec. 22, 1987, 101
Stat. 1330–114, provided that: ‘‘The amendments made
by subsection (a) [amending this section] shall be effec-
tive as if included in the amendment made by section
9343(a)(1)(B) of the Omnibus Budget Reconciliation Act
of 1986 [Pub. L. 99–509].’’
Pub. L. 100–203, title IV, § 4070(c)(1), Dec. 22, 1987, 101
Stat. 1330–115, provided that: ‘‘The amendment made by
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
subsection (a)(1) [amending this section] shall apply
with respect to calendar years beginning with 1988; ex-
cept that with respect to 1988, any reference in section
1833(c) of the Social Security Act [42 U.S.C. 1395l(c)], as
amended by subsection (a), to ‘$1375.00’ is deemed a ref-
erence to ‘$562.50’. The amendment made by subsection
(a)(2) [amending this section] shall apply to services
furnished on or after January 1, 1989.’’
For effective date of amendment by section 4072(b) of
Pub. L. 100–203, see section 4072(e) of Pub. L. 100–203, set
out as a note under section 1395x of this title.
Amendment by section 4073(b) of Pub. L. 100–203 effec-
tive with respect to services performed on or after July
1, 1988, see section 4073(e) of Pub. L. 100–203, set out as
a note under section 1395k of this title.
Amendment by section 4077(b)(2), (3) of Pub. L. 100–203
effective with respect to services performed on or after
July 1, 1988, see section 4077(b)(5) of Pub. L. 100–203, set
out as a note under section 1395k of this title.
Pub. L. 100–203, title IV, § 4084(b), Dec. 22, 1987, 101
Stat. 1330–129, provided that: ‘‘The amendments made
by subsection (a) [amending this section] shall apply as
if included in the amendment made by section 9320(e)(2)
of the Omnibus Budget Reconciliation Act of 1986 [Pub.
L. 99–509].’’
Pub. L. 100–203, title IV, § 4084(c)(3), as added by Pub.
L. 100–360, title IV, § 411(i)(3), July 1, 1988, 102 Stat. 788,
provided that: ‘‘The amendments made by this sub-
section [amending this section and section 1395x of this
title] shall apply to services furnished after December
31, 1988.’’
Pub. L. 100–203, title IV, § 4085(b)(2), Dec. 22, 1987, 101
Stat. 1330–130, provided that: ‘‘The amendment made by
paragraph (1) [amending this section] shall apply to
procedures performed on or after January 1, 1988.’’
Pub. L. 100–203, title IV, § 4085(i)(21), Dec. 22, 1987, 101
Stat. 1330–133, provided that the amendment to section
9343 of Pub. L. 99–509 by section 4085(i)(21)(D) of Pub. L.
100–203, amending this section and provisions set out as
an Effective Date of 1986 Amendments note below, is ef-
fective as if included in the enactment of Pub. L. 99–509.
EFFECTIVE DATE OF 1986 AMENDMENT
Amendment by section 9320(e)(1), (2) of Pub. L. 99–509
applicable to services furnished on or after Jan. 1, 1989,
with exceptions for hospitals located in rural areas
which meet certain requirements related to certified
registered nurse anesthetists, see section 9320(i), (k) of
Pub. L. 99–509, as amended, set out as notes under sec-
tion 1395k of this title.
Amendment by section 9337(b) of Pub. L. 99–509 appli-
cable to expenses incurred for outpatient occupational
therapy services furnished on or after July 1, 1987, see
section 9337(e) of Pub. L. 99–509, set out as a note under
section 1395k of this title.
Pub. L. 99–509, title IX, § 9339(a)(2), Oct. 21, 1986, 100
Stat. 2036, provided that: ‘‘The amendments made by
this subsection [amending this section] apply to clin-
ical diagnostic laboratory tests performed on or after
January 1, 1987.’’
Pub. L. 99–509, title IX, § 9339(c)(2), Oct. 21, 1986, 100
Stat. 2037, provided that: ‘‘The amendment made by
paragraph (1) [amending this section] shall apply to
samples collected on or after January 1, 1987.’’
Pub. L. 99–509, title IX, § 9343(h), Oct. 21, 1986, 100 Stat.
2042, as amended by Pub. L. 100–203, title IV,
§ 4085(i)(21)(D)(ii), (iii), Dec. 22, 1987, 101 Stat. 1330–134;
Pub. L. 100–360, title IV, § 411(i)(4)(C)(v), July 1, 1988, 102
Stat. 789, provided that:
‘‘(1) The amendments made by subsection (a)(1)
[amending this section] shall apply to cost reporting
periods beginning on or after October 1, 1987.
‘‘(2) The amendments made by subsections (b)(1) and
(c) [amending this section and sections 1395y and 1395cc
of this title] shall apply to services furnished after
June 30, 1987.
‘‘(3) The Secretary of Health and Human Services
shall first provide, under the amendment made by sub-
section (b)(2) [amending this section], for the review
and update of procedure lists within 6 months after the
date of the enactment of this Act [Oct. 21, 1986].
‘‘(4) The amendments made by subsection (d) [amend-
ing section 1320c–3 of this title] shall apply to contracts
entered into or renewed after January 1, 1987.’’
Pub. L. 99–272, title IX, § 9303(a)(2), Apr. 7, 1986, 100
Stat. 188, provided that: ‘‘The amendments made by
paragraph (1) [amending this section] shall apply to
clinical laboratory diagnostic tests performed on or
after July 1, 1986.’’
Pub. L. 99–272, title IX, § 9303(b)(5)(A), (B), Apr. 7, 1986,
100 Stat. 189, provided that:
‘‘(A) The amendments made by paragraphs (1) and (2)
[amending this section] shall apply to clinical diag-
nostic laboratory tests performed on or after July 1,
1986.
‘‘(B) The amendment made by paragraph (3) [amend-
ing this section] shall apply to clinical diagnostic lab-
oratory tests performed on or after January 1, 1987.’’
EFFECTIVE DATE OF 1984 AMENDMENT
Amendment by Pub. L. 98–617 effective as if originally
included in the Deficit Reduction Act of 1984, Pub. L.
98–369, see section 3(c) of Pub. L. 98–617, set out as a
note under section 1395f of this title.
Pub. L. 98–369, div. B, title III, § 2303(j), July 18, 1984,
98 Stat. 1067, provided that:
‘‘(1) Except as provided in paragraphs (2) and (3), the
amendments made by this section [amending this sec-
tion and sections 1395u, 1395cc, 1396a, and 1396b of this
title and enacting provisions set out as notes under
this section and section 1395u of this title] shall apply
to clinical diagnostic laboratory tests furnished on or
after July 1, 1984.
‘‘(2) The amendments made by subsection (g)(2)
[amending section 1396b of this title] shall apply to
payments for calendar quarters beginning on or after
October 1, 1984.
‘‘(3) The amendments made by this section shall not
apply to clinical diagnostic laboratory tests furnished
to inpatients of a provider operating under a waiver
granted pursuant to section 602(k) of the Social Secu-
rity Amendments of 1983 [section 602(k) of Pub. L. 98–21,
set out as a note under section 1395y of this title]. Pay-
ment for such services shall be made under part B of
title XVIII of the Social Security Act [42 U.S.C. 1395j et
seq.] at 80 percent (or 100 percent in the case of such
tests for which payment is made on the basis of an as-
signment described in section 1842(b)(3)(B)(ii) of the So-
cial Security Act [42 U.S.C. 1395u(b)(3)(B)(ii)] or under
the procedure described in section 1870(f)(1) of such Act
[42 U.S.C. 1395gg(f)(1)]) of the reasonable charge for
such service. The deductible under section 1833(b) of
such Act [42 U.S.C. 1395l(b)] shall not apply to such
tests if payment is made on the basis of such an assign-
ment or procedure.’’
Pub. L. 98–369, div. B, title III, § 2305(e), July 18, 1984,
98 Stat. 1070, provided that: ‘‘The amendments made by
this section [amending this section and enacting provi-
sions set out below] shall apply to services performed
after the date of the enactment of this Act [July 18,
1984].’’
Amendment by section 2321(b), (d)(4)(A) of Pub. L.
98–369 applicable to items and services furnished on or
after July 18, 1984, see section 2321(g) of Pub. L. 98–369,
set out as a note under section 1395f of this title.
Pub. L. 98–369, div. B, title III, § 2323(d), July 18, 1984,
98 Stat. 1086, provided that: ‘‘The amendments made by
this section [amending this section and sections 1395x,
1395cc, and 1395rr of this title and enacting provisions
set out below] apply to services furnished on or after
September 1, 1984.’’
Amendment by section 2354(b)(5), (7) of Pub. L. 98–369
effective July 18, 1984, but not to be construed as chang-
ing or affecting any right, liability, status, or interpre-
tation which existed (under the provisions of law in-
volved) before that date, see section 2354(e)(1) of Pub. L.
98–369, set out as a note under section 1320a–1 of this
title.
EFFECTIVE DATE OF 1982 AMENDMENT
Pub. L. 97–248, title I, § 112(c), Sept. 3, 1982, 96 Stat.
340, provided that: ‘‘The amendments made by this sec-
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
tion [amending this section] shall apply with respect to
items and services furnished on or after October 1,
1982.’’
Amendment by section 117(a)(2) of Pub. L. 97–248 ap-
plicable to final determinations made on or after Sept.
3, 1982, see section 117(b) of Pub. L. 97–248, set out as a
note under section 1395g of this title.
Amendment by section 148(d) of Pub. L. 97–248 effec-
tive with respect to contracts entered into or renewed
on or after Sept. 3, 1982, see section 149 of Pub. L.
97–248, set out as an Effective Date note under section
1320c of this title.
EFFECTIVE DATE OF 1981 AMENDMENT
Pub. L. 97–35, title XXI, § 2106(c), Aug. 13, 1981, 95 Stat.
792, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] is effective as of De-
cember 5, 1980, and the amendment made by subsection
(b)(2) [amending section 1395q(b) of this title], is effec-
tive as of April 1, 1981.’’
Pub. L. 97–35, title XXI, § 2133(b), Aug. 13, 1981, 95 Stat.
797, provided that: ‘‘The amendments made by sub-
section (a) [amending this section] first apply to the
deductible for calendar year 1982 with respect to ex-
penses incurred on or after October 1, 1981.’’
Pub. L. 97–35, title XXI, § 2134(b), Aug. 13, 1981, 95 Stat.
797, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] shall take effect on
January 1, 1982, and shall apply to the deductible for
calendar years beginning with 1982.’’
EFFECTIVE DATE OF 1980 AMENDMENT
Pub. L. 96–611, § 2, Dec. 28, 1980, 94 Stat. 3567, provided
that: ‘‘The amendments made by this Act [probably
should be the amendments made by section 1 of this
Act, which amended this section and sections 1395x,
1395y, 1395aa, and 1395cc of this title] shall take effect
on, and apply to services furnished on or after, July 1,
1981.’’
Amendment by section 930(h) of Pub. L. 96–499, effec-
tive with respect to services furnished on or after July
1, 1981, see section 930(s)(1) of Pub. L. 96–499, set out as
a note under section 1395x of this title.
Pub. L. 96–499, title IX, § 935(b), Dec. 5, 1980, 94 Stat.
2639, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] shall apply to ex-
penses incurred in calendar years beginning with cal-
endar year 1982.’’
Pub. L. 96–499, title IX, § 943(b), Dec. 5, 1980, 94 Stat.
2642, provided that: ‘‘The amendments made by sub-
section (a) [amending this section] shall apply to serv-
ices furnished after the sixth calendar month beginning
after the date of the enactment of this Act [Dec. 5,
1980].’’
EFFECTIVE DATE OF 1978 AMENDMENT
Amendment by Pub. L. 95–292 effective with respect
to services, supplies, and equipment furnished after the
third calendar month beginning after June 13, 1978, ex-
cept that provisions for the implementation of an in-
centive reimbursement system for dialysis services fur-
nished in facilities and providers to become effective
with respect to a facility’s or provider’s first account-
ing period beginning after the last day of the twelfth
month following the month of June 1978, and except
that provisions for reimbursement rates for home di-
alysis to become effective on Apr. 1, 1979, see section 6
of Pub. L. 95–292, set out as a note under section 426 of
this title.
EFFECTIVE DATE OF 1977 AMENDMENT
Amendment by Pub. L. 95–210 applicable to services
rendered on or after first day of third calendar month
which begins after Dec. 31, 1977, see section 1(j) of Pub.
L. 95–210, set out as a note under section 1395k of this
title.
Pub. L. 95–142, § 16(b), Oct. 25, 1977, 91 Stat. 1201, pro-
vided that: ‘‘The amendment made by subsection (a)
[amending this section] shall apply with respect to du-
rable medical equipment purchased or rented on or
after October 1, 1977.’’
EFFECTIVE DATE OF 1972 AMENDMENT
Pub. L. 92–603, title II, § 204(c), Oct. 30, 1972, 86 Stat.
1377, provided that: ‘‘The amendments made by this
section [amending this section and section 1395n of this
title] shall be effective with respect to calendar years
after 1972 (except that, for purposes of applying clause
(1) of the first sentence of section 1833(b) of the Social
Security Act [42 U.S.C. 1395l(b)], such amendments
shall be deemed to have taken effect on January 1,
1972).’’
Amendment by section 211(c)(4) of Pub. L. 92–603 ap-
plicable to services furnished with respect to admis-
sions occurring after Dec. 31, 1972, see section 211(d) of
Pub. L. 92–603, set out as a note under section 1395f of
this title.
Amendment by section 226(c)(2) of Pub. L. 92–603 ef-
fective with respect to services provided on or after
July 1, 1973, see section 226(f) of Pub. L. 92–603, set out
as an Effective Date note under section 1395mm of this
title.
Amendment by section 233(b) of Pub. L. 92–603 appli-
cable to services furnished by hospitals, extended care
facilities, and home health agencies in accounting peri-
ods beginning after Dec. 31, 1972, see section 233(f) of
Pub. L. 92–603, set out as a note under section 1395f of
this title. See, also, Pub. L. 93–233, § 16, Dec. 31, 1973, 87
Stat. 967, set out as a note under section 1395f of this
title.
Amendment by section 251(a)(2), (3) of Pub. L. 92–603
applicable with respect to services furnished on or after
July 1, 1973, see section 251(d)(1) of Pub. L. 92–603, set
out as a note under section 1395x of this title.
Pub. L. 92–603, title II, § 299K(b), Oct. 30, 1972, 86 Stat.
1464, provided that: ‘‘The amendment made by sub-
section (a) [amending this section] shall apply to serv-
ices furnished by home health agencies in accounting
periods beginning after December 31, 1972.’’
EFFECTIVE DATE OF 1968 AMENDMENT
Amendment by section 129(c)(7), (8) of Pub. L. 90–248
applicable with respect to services furnished after Mar.
31, 1968, see section 129(d) of Pub. L. 90–248, set out as
a note under section 1395d of this title.
Pub. L. 90–248, title I, § 131(c), Jan. 2, 1968, 81 Stat. 850,
provided that: ‘‘The amendments made by this section
[amending this section] shall apply with respect to
services furnished after March 31, 1968.’’
Pub. L. 90–248, title I, § 132(c), Jan. 2, 1968, 81 Stat. 850,
provided that: ‘‘The amendments made by this section
[amending this section and section 1395x of this title]
shall apply only with respect to items purchased after
December 31, 1967.’’
Amendment by section 135(c) of Pub. L. 90–248 appli-
cable with respect to payment for blood (or packed red
blood cells) furnished an individual after Dec. 31, 1967,
see section 135(d) of Pub. L. 90–248, set out as a note
under section 1395e of this title.
CONSTRUCTION OF 2008 AMENDMENT
Pub. L. 110–275, title I, § 101(a)(4), July 15, 2008, 122
Stat. 2497, provided that: ‘‘Nothing in the provisions of,
or amendments made by, this subsection [amending
this section and sections 1395x and 1395y of this title]
shall be construed to provide coverage under title
XVIII of the Social Security Act [42 U.S.C. 1395 et seq.]
of items and services for the treatment of a medical
condition that is not otherwise covered under such
title.’’
CONSTRUCTION REGARDING LIMITING INCREASES IN
COST-SHARING
Pub. L. 106–554, § 1(a)(6) [title I, § 111(b)], Dec. 21, 2000,
114 Stat. 2763, 2763A–473, provided that: ‘‘Nothing in this
Act [H.R. 5661, as enacted by section 1(a)(6) of Pub. L.
106–554, see Tables for classification] or the Social Se-
curity Act [this chapter] shall be construed as pre-
Page 3086
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
venting a hospital from waiving the amount of any co-
insurance for outpatient hospital services under the
medicare program under title XVIII of the Social Secu-
rity Act [42 U.S.C. 1395 et seq.] that may have been in-
creased as a result of the implementation of the pro-
spective payment system under section 1833(t) of the
Social Security Act (42 U.S.C. 1395l(t)).’’
IMPLEMENTATION OF 2022 AMENDMENT
Pub. L. 117–328, div. FF, title IV, § 4141(b), Dec. 29,
2022, 136 Stat. 5929, provided that: ‘‘Notwithstanding
any other provision of law, the Secretary of Health and
Human Service may implement the amendments made
by subsection (a) [amending this section] by program
instruction or otherwise.’’
Pub. L. 117–169, title I, § 11407(c), Aug. 16, 2022, 136
Stat. 1905, provided that: ‘‘The Secretary of Health and
Human Services shall implement this section [amend-
ing this section] for 2023 by program instruction or
other forms of program guidance.’’
PROVIDER OUTREACH AND REPORTING ON CERTAIN
BEHAVIORAL HEALTH INTEGRATION SERVICES
Pub. L. 117–328, div. FF, title IV, § 4128, Dec. 29, 2022,
136 Stat. 5916, provided that:
‘‘(a) OUTREACH.—The Secretary of Health and Human
Services (in this section referred to as the ‘Secretary’)
shall conduct outreach to physicians and appropriate
non-physician practitioners participating under the
Medicare program under title XVIII of the Social Secu-
rity Act (42 U.S.C. 1395 et seq.) with respect to behav-
ioral health integration services described by any of
HCPCS codes 99492 through 99494 or 99484 (or any suc-
cessor code). Such outreach shall include a comprehen-
sive, one-time education initiative to inform such phy-
sicians and practitioners of the inclusion of such serv-
ices as a covered benefit under the Medicare program,
including describing the requirements to bill for such
codes and the requirements for beneficiary eligibility
for such services.
‘‘(b) REPORTS TO CONGRESS.—
‘‘(1) PROVIDER
OUTREACH.—Not later than 1 year
after the date of the completion of the education ini-
tiative described in subsection (a), the Secretary
shall submit to the Committee on Ways and Means
and the Committee on Energy and Commerce of the
House of Representatives and the Committee on Fi-
nance of the Senate a report on the outreach con-
ducted under such subsection. Such report shall in-
clude a description of the methods used for such out-
reach.
‘‘(2) UTILIZATION RATES.—Not later than 18 months
after the date of the completion of the education ini-
tiative described in subsection (a), and two years
thereafter, the Secretary shall submit to the Com-
mittee on Ways and Means and the Committee on En-
ergy and Commerce of the House of Representatives
and the Committee on Finance of the Senate a report
on the number of Medicare beneficiaries (including
those beneficiaries accessing services in rural and un-
derserved areas) who, during the preceding year, were
furnished services described in subsection (a) for
which payment was made under title XVIII of the So-
cial Security Act (42 U.S.C. 1395 et seq.).’’
OUTREACH
AND
REPORTING
ON
OPIOID
USE
DISORDER
TREATMENT SERVICES FURNISHED
BY OPIOID TREAT-
MENT PROGRAMS
Pub. L. 117–328, div. FF, title IV, § 4129, Dec. 29, 2022,
136 Stat. 5916, provided that:
‘‘(a) OUTREACH.—
‘‘(1) PROVIDER OUTREACH.—The Secretary of Health
and Human Services (in this section referred to as the
‘Secretary’) shall conduct outreach to physicians and
appropriate non-physician practitioners participating
under the Medicare program under title XVIII of the
Social Security Act (42 U.S.C. 1395 et seq.) with re-
spect to opioid use disorder treatment services fur-
nished by an opioid treatment program (as defined in
section 1861(jjj) of the Social Security Act (42 U.S.C.
1395x(jjj))). Such outreach shall include a comprehen-
sive, one-time education initiative to inform such
physicians and practitioners of the inclusion of such
services as a covered benefit under the Medicare pro-
gram, including describing the requirements for bill-
ing and the requirements for beneficiary eligibility
for such services.
‘‘(2) BENEFICIARY
OUTREACH.—The Secretary shall
conduct outreach to Medicare beneficiaries with re-
spect to opioid use disorder treatment services fur-
nished by an opioid treatment program (as defined in
section 1861(jjj) of the Social Security Act (42 U.S.C.
1395x(jjj))), including a comprehensive, one-time edu-
cation initiative informing such beneficiaries about
the eligibility requirements to receive such services.
‘‘(b) REPORTS TO CONGRESS.—
‘‘(1) OUTREACH.—Not later than 1 year after the
date of the completion of the education initiatives
described in subsection (a), the Secretary shall sub-
mit to the Committee on Ways and Means and the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Finance of the
Senate a report on the outreach conducted under
such subsection. Such report shall include a descrip-
tion of the methods used for such outreach.
‘‘(2) UTILIZATION RATES.—Not later than 18 months
after the date of the completion of the education ini-
tiatives described in subsection (a), and two years
thereafter, the Secretary shall submit to the Com-
mittee on Ways and Means and the Committee on En-
ergy and Commerce of the House of Representatives
and the Committee on Finance of the Senate a report
on the number of Medicare beneficiaries who, during
the preceding year, were furnished opioid use disorder
treatment services by an opioid treatment program
(as defined in section 1861(jjj) of the Social Security
Act (42 U.S.C. 1395x(jjj))) for which payment was
made under title XVIII of such Act (42 U.S.C. 1395 et
seq.).’’
CENTERS
FOR
MEDICARE
&
MEDICAID
SERVICES
PRO-
VIDER OUTREACH
AND REPORTING
ON COGNITIVE AS-
SESSMENT AND CARE PLAN SERVICES
Pub. L. 116–260, div. CC, title I, § 116, Dec. 27, 2020, 134
Stat. 2949, provided that:
‘‘(a) OUTREACH.—The Secretary of Health and Human
Services (in this section referred to as the ‘Secretary’)
shall conduct outreach to physicians and appropriate
non-physician practitioners participating under the
Medicare program under title XVIII of the Social Secu-
rity Act (42 U.S.C. 1395 et seq.) with respect to Medicare
payment for cognitive assessment and care plan serv-
ices furnished to individuals with cognitive impairment
such as Alzheimer’s disease and related dementias,
identified as of January 1, 2018, by HCPCS code 99483, or
any successor to such code (in this section referred to
as ‘cognitive assessment and care plan services’). Such
outreach shall include a comprehensive, one-time edu-
cation initiative to inform such physicians and practi-
tioners of the addition of such services as a covered
benefit under the Medicare program, including the re-
quirements for eligibility for such services.
‘‘(b) REPORTS.—
‘‘(1) HHS REPORT ON PROVIDER OUTREACH.—Not later
than one year after the date of enactment of this Act
[Dec. 27, 2020], the Secretary of Health and Human
Services shall submit to the Committee on Ways and
Means and the Committee on Energy and Commerce
of the House of Representatives and the Committee
on Finance of the Senate a report on the outreach
conducted under subsection (a). Such report shall in-
clude a description of the methods used for such out-
reach.
‘‘(2) GAO REPORT ON UTILIZATION RATES.—Not later
than 3 years after such date of enactment, the Comp-
troller General of the United States shall submit to
the Committee on Ways and Means and the Com-
mittee on Energy and Commerce of the House of Rep-
resentatives and the Committee on Finance of the
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
Senate a report on the number of Medicare bene-
ficiaries who were furnished cognitive assessment
and care plan services for which payment was made
under title XVIII of the Social Security Act (42 U.S.C.
1395 et seq.). Such report shall include information on
barriers Medicare beneficiaries face to access such
services, and recommendations for such legislative
and administrative action as the Comptroller General
deems appropriate.’’
IMPLEMENTATION OF 2020 AMENDMENT
Pub. L. 116–136, div. A, title III, § 3713(e), Mar. 27, 2020,
134 Stat. 424, provided that: ‘‘Notwithstanding any
other provision of law, the Secretary [probably means
Secretary of Health and Human Services] may imple-
ment the provisions of, and the amendments made by,
this section [amending this section and sections
1395w–22 and 1395x of this title] by program instruction
or otherwise.’’
CLAIMS MODIFIER
Pub. L. 116–127, div. F, § 6002(b), Mar. 18, 2020, 134 Stat.
203, provided that: ‘‘The Secretary of Health and
Human Services shall provide for an appropriate modi-
fier (or other identifier) to include on claims to iden-
tify, for purposes of subparagraph (DD) of section
1833(a)(1) [probably means section 1833(a)(1)(DD) of the
Social Security Act, 42 U.S.C. 1395l(a)(1)(DD)], as added
by subsection (a), specified COVID–19 testing-related
services described in paragraph (1) of section 1833(cc) of
the Social Security Act [42 U.S.C. 1395l(cc)], as added by
subsection (a), for which payment may be made under
a specified outpatient payment provision described in
paragraph (2) of such subsection.’’
IMPLEMENTATION OF PROVISIONS OF PUB. L. 116–127
Pub. L. 116–127, div. F, § 6002(c), Mar. 18, 2020, 134 Stat.
203, provided that: ‘‘Notwithstanding any other provi-
sion of law, the Secretary of Health and Human Serv-
ices may implement the provisions of, including
amendments made by, this section [amending this sec-
tion and enacting provisions set out as a note above]
through program instruction or otherwise.’’
IMPLEMENTATION OF 2019 AMENDMENT
Pub. L. 116–94, div. N, title I, § 107(b), Dec. 20, 2019, 133
Stat. 3102, provided that: ‘‘Notwithstanding any other
provision of law, the Secretary of Health and Human
Service may implement the amendments made by sub-
section (a) [amending this section] by program instruc-
tion or otherwise.’’
IMPLEMENTATION OF 2018 AMENDMENT
Pub. L. 115–141, div. S, title XIII, § 1301(a)(3), Mar. 23,
2018, 132 Stat. 1150, provided that: ‘‘Notwithstanding
any other provision of law, the Secretary of Health and
Human Services may implement the amendments made
by paragraphs (1) and (2) [amending this section] by
program instruction or otherwise.’’
IMPROVING DOCUMENTATION OF SERVICES
Pub. L. 114–10, title V, § 514(b), Apr. 16, 2015, 129 Stat.
173, provided that:
‘‘(1) IN
GENERAL.—The Secretary of Health and
Human Services shall, in consultation with stake-
holders (including the American Chiropractic Associa-
tion) and representatives of medicare administrative
contractors (as defined in section 1874A(a)(3)(A) of the
Social Security Act (42 U.S.C. 1395kk–1(a)(3)(A))), de-
velop educational and training programs to improve
the ability of chiropractors to provide documentation
to the Secretary of services described in section
1861(r)(5) [42 U.S.C. 1395x(r)(5)] in a manner that dem-
onstrates that such services are, in accordance with
section 1862(a)(1) of such Act (42 U.S.C. 1395y(a)(1)), rea-
sonable and necessary for the diagnosis or treatment of
illness or injury or to improve the functioning of a mal-
formed body member.
‘‘(2) TIMING.—The Secretary shall make the edu-
cational and training programs described in paragraph
(1) publicly available not later than January 1, 2016.
‘‘(3) FUNDING.—The Secretary shall use funds made
available under paragraph (10) of section 1893(h) of the
Social Security Act (42 U.S.C. 1395ddd(h)), as added by
section 505, to carry out this subsection.’’
MEDICARE PATIENT IVIG ACCESS DEMONSTRATION
PROJECT
Pub. L. 112–242, title I, § 101, Jan. 10, 2013, 126 Stat.
2374, as amended by Pub. L. 115–63, title III, § 302, Sept.
29, 2017, 131 Stat. 1172; Pub. L. 116–260, div. CC, title I,
§ 104, Dec. 27, 2020, 134 Stat. 2943, provided that:
‘‘(a) ESTABLISHMENT.—The Secretary shall establish
and implement a demonstration project under part B of
title XVIII of the Social Security Act [42 U.S.C. 1395j et
seq.] to evaluate the benefits of providing payment for
items and services needed for the in-home administra-
tion of intravenous immune globin for the treatment of
primary immune deficiency diseases.
‘‘(b) DURATION AND SCOPE.—
‘‘(1) DURATION.—Beginning not later than one year
after the date of enactment of this Act [Jan. 10, 2013],
the Secretary shall conduct the demonstration
project for a period of 3 years and, subject to the
availability of funds under subsection (g), the period
beginning on October 1, 2017, and ending on December
31, 2023.
‘‘(A) if the date of enactment of the Disaster Tax
Relief and Airport and Airway Extension Act of 2017
is on or before September 30, 2017 [Pub. L. 115–63
was approved Sept. 29, 2017], for the period begin-
ning on October 1, 2017, and ending on December 31,
2020; and
‘‘(B) if the date of enactment of such Act is after
September 30, 2017, for the period beginning on the
date of enactment of such Act and ending on De-
cember 31, 2020.
‘‘(2) SCOPE.—The Secretary shall enroll for partici-
pation in the demonstration project for the period be-
ginning on October 1, 2014, and ending on September
30, 2020, not more than 4,000 Medicare beneficiaries
who have been diagnosed with primary immuno-
deficiency disease and for the period beginning on Oc-
tober 1, 2014, and ending on December 31, 2023, not
more than 6,500 Medicare beneficiaries who have been
so diagnosed. A Medicare beneficiary may participate
in the demonstration project on a voluntary basis
and may terminate participation at any time. Sub-
ject to the preceding sentence, a Medicare beneficiary
enrolled in the demonstration project on September
30, 2017, shall be automatically enrolled during the
period beginning on the date of the enactment of the
Disaster Tax Relief and Airport and Airway Exten-
sion Act of 2017 and ending on December 31, 2023,
without submission of another application.
‘‘(c) COVERAGE.—Except as otherwise provided in this
section, items and services for which payment may be
made under the demonstration program shall be treat-
ed and covered under part B of title XVIII of the Social
Security Act in the same manner as similar items and
services covered under such part.
‘‘(d) PAYMENT.—The Secretary shall establish a per
visit payment amount for items and services needed for
the in-home administration of intravenous immune
globin based on the national per visit low-utilization
payment amount under the prospective payment sys-
tem for home health services established under section
1895 of the Social Security Act (42 U.S.C. 1395fff).
‘‘(e) WAIVER AUTHORITY.—The Secretary may waive
such requirements of title XVIII of the Social Security
Act [42 U.S.C. 1395 et seq.] as may be necessary to carry
out the demonstration project.
‘‘(f) STUDY AND REPORT TO CONGRESS.—
‘‘(1) INTERIM
EVALUATION
AND
REPORT.—Not later
than three years after the date of enactment of this
Act, the Secretary shall submit to Congress a report
that contains an interim evaluation of the impact of
the demonstration project on access for Medicare
Page 3088
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
beneficiaries to items and services needed for the in-
home administration of intravenous immune globin.
‘‘(2) UPDATED EVALUATION AND REPORT.—Not later
than 2 years after the date of the enactment of [the]
Consolidated Appropriations Act, 2021 [Dec. 27, 2020],
the Secretary shall submit to Congress an updated re-
port that contains the following:
‘‘(A) The total number of beneficiaries enrolled in
the demonstration project during the updated re-
port period.
‘‘(B) The total number of claims submitted for
services
during
the
updated
report
period,
disaggregated by month.
‘‘(C) An analysis of the impact of the demonstra-
tion on beneficiary access to the in-home adminis-
tration of intravenous immune globin, including
the impact on beneficiary health.
‘‘(D) An analysis of the impact of in-home admin-
istration of intravenous immune globin on overall
costs to Medicare, including the cost differential
between in-home administration of intravenous im-
mune globin and administration of intravenous im-
mune globin in a healthcare facility.
‘‘(E) To the extent practicable, a survey of pro-
viders and enrolled beneficiaries that participated
in the demonstration project that identifies bar-
riers to accessing services, including reimburse-
ment for items and services.
‘‘(F) Recommendations to Congress on the appro-
priateness of establishing a permanent bundled
services payment for the in-home administration of
intravenous immune globin for Medicare bene-
ficiaries.
‘‘(3) FINAL EVALUATION AND REPORT.—Not later than
one year after the date of completion of the dem-
onstration project, the Secretary shall submit to
Congress a report that contains the following:
‘‘(A) A final evaluation of the impact of the dem-
onstration project on access for Medicare bene-
ficiaries to items and services needed for the in-
home
administration
of
intravenous
immune
globin.
‘‘(B) An analysis of the appropriateness of imple-
menting a new methodology for payment for intra-
venous immune globulins in all care settings under
part B of title XVIII of the Social Security Act (42
U.S.C. 1395k [1395j] et seq.).
‘‘(C) An update to the report entitled ‘Analysis of
Supply, Distribution, Demand, and Access Issues
Associated with Immune Globulin Intravenous
(IGIV)’, issued in February 2007 by the Office of the
Assistant Secretary for Planning and Evaluation of
the Department of Health and Human Services.
‘‘(g) FUNDING.—There shall be made available to the
Secretary to carry out the demonstration project not
more than $45,000,000 from the Federal Supplementary
Medical Insurance Trust Fund under section 1841 of the
Social Security Act (42 U.S.C. 1395t).
‘‘(h) DEFINITIONS.—In this section:
‘‘(1) DEMONSTRATION
PROJECT.—The term ‘dem-
onstration project’ means the demonstration project
conducted under this section.
‘‘(2) MEDICARE
BENEFICIARY.—The term ‘Medicare
beneficiary’ means an individual who is enrolled for
benefits under part B of title XVIII of the Social Se-
curity Act.
‘‘(3) SECRETARY.—The term ‘Secretary’ means the
Secretary of Health and Human Services.
‘‘(4) UPDATED REPORT PERIOD.—The term ‘updated
report period’ means the period beginning on October
1, 2014, and ending on September 30, 2020.’’
[Pub. L. 116–260, § 104(b), (c), which directed amend-
ment of section 101 without specifying the Act to be
amended, was executed to section 101 of Pub. L. 112–242,
set out above, to reflect the probable intent of Con-
gress.]
IMPLEMENTATION OF 2013 AMENDMENT
Pub. L. 112–240, title VI, § 603(d), Jan. 2, 2013, 126 Stat.
2347, provided that: ‘‘Notwithstanding any other provi-
sion of law, the Secretary of Health and Human Serv-
ices may implement the provisions of, and the amend-
ments made by, this section [amending this section] by
program instruction or otherwise.’’
IMPLEMENTATION OF 2012 AMENDMENT
Pub. L. 112–96, title III, § 3005(d), Feb. 22, 2012, 126
Stat. 189, provided that: ‘‘The Secretary of Health and
Human Services shall implement such claims proc-
essing edits and issue such guidance as may be nec-
essary to implement the amendments made by this sec-
tion [amending this section and section 1395u of this
title] in a timely manner. Notwithstanding any other
provision of law, the Secretary may implement the
amendments made by this section by program instruc-
tion. Of the amount of funds made available to the Sec-
retary for fiscal year 2012 for program management for
the Centers for Medicare & Medicaid Services, not to
exceed $9,375,000 shall be available for such fiscal year
and the first 3 months of fiscal year 2013 to carry out
section 1833(g)(5)(C) of the Social Security Act [42
U.S.C. 1395l(g)(5)(C)] (relating to manual medical re-
view), as added by subsection (a).’’
COLLECTION OF ADDITIONAL DATA
Pub. L. 112–96, title III, § 3005(g), Feb. 22, 2012, 126
Stat. 189, provided that:
‘‘(1) STRATEGY.—The Secretary of Health and Human
Services shall implement, beginning on January 1, 2013,
a claims-based data collection strategy that is designed
to assist in reforming the Medicare payment system for
outpatient therapy services subject to the limitations
of section 1833(g) of the Social Security Act (42 U.S.C.
1395l(g)). Such strategy shall be designed to provide for
the collection of data on patient function during the
course of therapy services in order to better understand
patient condition and outcomes.
‘‘(2) CONSULTATION.—In proposing and implementing
such strategy, the Secretary shall consult with rel-
evant stakeholders.’’
TREATMENT OF CERTAIN COMPLEX DIAGNOSTIC
LABORATORY TESTS
Pub. L. 111–148, title III, § 3113, Mar. 23, 2010, 124 Stat.
422, provided that:
‘‘(a) DEMONSTRATION PROJECT.—
‘‘(1) IN
GENERAL.—The Secretary of Health and
Human Services (in this section referred to as the
‘Secretary’) shall conduct a demonstration project
under part B [of] title XVIII of the Social Security
Act [42 U.S.C. 1395j et seq.] under which separate pay-
ments are made under such part for complex diag-
nostic laboratory tests provided to individuals under
such part. Under the demonstration project, the Sec-
retary shall establish appropriate payment rates for
such tests.
‘‘(2) COVERED COMPLEX DIAGNOSTIC LABORATORY TEST
DEFINED.—In this section, the term ‘complex diag-
nostic laboratory test’ means a diagnostic laboratory
test—
‘‘(A) that is an analysis of gene protein expres-
sion, topographic genotyping, or a cancer chemo-
therapy sensitivity assay;
‘‘(B) that is determined by the Secretary to be a
laboratory test for which there is not an alter-
native test having equivalent performance charac-
teristics;
‘‘(C) which is billed using a Health Care Proce-
dure Coding System (HCPCS) code other than a not
otherwise classified code under such Coding Sys-
tem;
‘‘(D) which is approved or cleared by the Food and
Drug Administration or is covered under title XVIII
of the Social Security Act [42 U.S.C. 1395 et seq.];
and
‘‘(E) is described in section 1861(s)(3) of the Social
Security Act (42 U.S.C. 1395x(s)(3)).
‘‘(3) SEPARATE PAYMENT DEFINED.—In this section,
the term ‘separate payment’ means direct payment
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TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
to a laboratory (including a hospital-based or inde-
pendent laboratory) that performs a complex diag-
nostic laboratory test with respect to a specimen col-
lected from an individual during a period in which
the individual is a patient of a hospital if the test is
performed after such period of hospitalization and if
separate payment would not otherwise be made under
title XVIII of the Social Security Act by reason of
sections 1862(a)(14) and 1866(a)(1)(H)(i) of the such
[sic]
Act
(42
U.S.C.
1395y(a)(14);
42
U.S.C.
1395cc(a)(1)(H)(i)).
‘‘(b) DURATION.—Subject to subsection (c)(2), the Sec-
retary shall conduct the demonstration project under
this section for the 2-year period beginning on July 1,
2011.
‘‘(c) PAYMENTS AND LIMITATION.—Payments under the
demonstration project under this section shall—
‘‘(1) be made from the Federal Supplemental [prob-
ably should be ‘‘Supplementary’’] Medical Insurance
Trust Fund under section 1841 of the Social Security
Act (42 U.S.C. 1395t); and
‘‘(2) may not exceed $100,000,000.
‘‘(d) REPORT.—Not later than 2 years after the com-
pletion of the demonstration project under this section,
the Secretary shall submit to Congress a report on the
project. Such report shall include—
‘‘(1) an assessment of the impact of the demonstra-
tion project on access to care, quality of care, health
outcomes, and expenditures under title XVIII of the
Social Security Act [42 U.S.C. 1395 et seq.] (including
any savings under such title); and
‘‘(2) such recommendations as the Secretary deter-
mines appropriate.
‘‘(e) IMPLEMENTATION FUNDING.—For purposes of ad-
ministering this section (including preparing and sub-
mitting the report under subsection (d)), the Secretary
shall provide for the transfer, from the Federal Supple-
mental [probably should be ‘‘Supplementary’’] Medical
Insurance Trust Fund under section 1841 of the Social
Security Act (42 U.S.C. 1395t), to the Centers for Medi-
care & Medicaid Services Program Management Ac-
count, of $5,000,000. Amounts transferred under the pre-
ceding sentence shall remain available until expended.’’
TREATMENT OF CERTIFIED REGISTERED NURSE
ANESTHETISTS
Pub. L. 110–275, title I, § 139(b), July 15, 2008, 122 Stat.
2541, provided that: ‘‘With respect to items and services
furnished on or after January 1, 2010, the Secretary of
Health and Human Services shall make appropriate ad-
justments to payments under the Medicare program
under title XVIII of the Social Security Act [42 U.S.C.
1395 et seq.] for teaching certified registered nurse an-
esthetists to implement a policy with respect to teach-
ing certified registered nurse anesthetists that—
‘‘(1) is consistent with the adjustments made by the
special rule for teaching anesthesiologists under sec-
tion 1848(a)(6) of the Social Security Act [42 U.S.C.
1395w–4(a)(6)], as added by subsection (a); and
‘‘(2) maintains the existing payment differences be-
tween teaching anesthesiologists and teaching cer-
tified registered nurse anesthetists.’’
IMPLEMENTATION OF 2006 AMENDMENT
Pub. L. 109–432, div. B, title I, § 107(b)(2), Dec. 20, 2006,
120 Stat. 2983, provided that: ‘‘The Secretary of Health
and Human Services may implement the amendment
made by paragraph (1) [amending this section] by pro-
gram instruction or otherwise.’’
Pub. L. 109–171, title V, § 5107(a)(2), Feb. 8, 2006, 120
Stat. 42, provided that: ‘‘The Secretary of Health and
Human Services shall waive such provisions of law and
regulation (including those described in section 110(c)
of Public Law 108–173 [set out as a note under section
1395w–101 of this title]) as are necessary to implement
the amendments made by paragraph (1) [amending this
section] on a timely basis and, notwithstanding any
other provision of law, may implement such amend-
ments by program instruction or otherwise. There shall
be no administrative or judicial review under section
1869 or section 1878 of the Social Security Act (42 U.S.C.
1395ff and 1395oo), or otherwise of the process (including
the establishment of the process) under section
1833(g)(5) of such Act [42 U.S.C. 1395l(g)(5)], as added by
paragraph (1).’’
IMPLEMENTATION
OF
CLINICALLY
APPROPRIATE
CODE
EDITS
IN
ORDER
TO
IDENTIFY
AND
ELIMINATE
IM-
PROPER PAYMENTS FOR THERAPY SERVICES
Pub. L. 109–171, title V, § 5107(b), Feb. 8, 2006, 120 Stat.
43, provided that: ‘‘By not later than July 1, 2006, the
Secretary of Health and Human Services shall imple-
ment clinically appropriate code edits with respect to
payments under part B of title XVIII of the Social Se-
curity Act [42 U.S.C. 1395j et seq.] for physical therapy
services, occupational therapy services, and speech-lan-
guage pathology services in order to identify and elimi-
nate improper payments for such services, including
edits of clinically illogical combinations of procedure
codes and other edits to control inappropriate bil-
lings.’’
APPLICATION OF 2003 AMENDMENT TO PHYSICIAN
SPECIALTIES
Amendment by section 303 of Pub. L. 108–173, insofar
as applicable to payments for drugs or biologicals and
drug administration services furnished by physicians,
is applicable only to physicians in the specialties of he-
matology, hematology/oncology, and medical oncology
under this subchapter, see section 303(j) of Pub. L.
108–173, set out as a note under section 1395u of this
title.
Notwithstanding section 303(j) of Pub. L. 108–173 (see
note above), amendment by section 303 of Pub. L.
108–173 also applicable to payments for drugs or
biologicals and drug administration services furnished
by physicians in specialties other than the specialties
of hematology, hematology/oncology, and medical on-
cology, see section 304 of Pub. L. 108–173, set out as a
note under section 1395u of this title.
GAO STUDY OF MEDICARE PAYMENT FOR INHALATION
THERAPY
Pub. L. 108–173, title III, § 305(b), Dec. 8, 2003, 117 Stat.
2255, required the Comptroller General of the United
States to conduct a study to examine the adequacy of
reimbursements for inhalation therapy under the medi-
care program, and to submit to Congress a report on
this study not later than 1 year after Dec. 8, 2003.
TREATMENT OF CERTAIN CLINICAL DIAGNOSTIC LABORA-
TORY TESTS FURNISHED TO HOSPITAL OUTPATIENTS IN
CERTAIN RURAL AREAS
Pub. L. 108–173, title IV, § 416, Dec. 8, 2003, 117 Stat.
2282, as amended by Pub. L. 109–432, div. B, title I, § 105,
Dec. 20, 2006, 120 Stat. 2981; Pub. L. 110–173, title I, § 107,
Dec. 29, 2007, 121 Stat. 2496; Pub. L. 111–148, title III,
§ 3122, Mar. 23, 2010, 124 Stat. 423; Pub. L. 111–309, title
I, § 109, Dec. 15, 2010, 124 Stat. 3288, provided that:
‘‘(a) IN GENERAL.—Notwithstanding subsections (a),
(b), and (h) of section 1833 of the Social Security Act (42
U.S.C. 1395l) and section 1834(d)(1) of such Act (42 U.S.C.
1395m(d)(1)), in the case of a clinical diagnostic labora-
tory test covered under part B of title XVIII of such
Act [42 U.S.C. 1395j et seq.] that is furnished during a
cost reporting period described in subsection (b) by a
hospital with fewer than 50 beds that is located in a
qualified
rural
area
(identified
under
paragraph
(12)(B)(iii) of section 1834(l) of the Social Security Act
(42 U.S.C. 1395m(l)), as added by section 414(c)) as part
of outpatient services of the hospital, the amount of
payment for such test shall be 100 percent of the rea-
sonable costs of the hospital in furnishing such test.
‘‘(b) APPLICATION.—A cost reporting period described
in this subsection is a cost reporting period beginning
during the period beginning on July 1, 2004, and ending
on June 30, 2008 or during the 2-year period beginning
on July 1, 2010.
Page 3090
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
‘‘(c) PROVISION
AS PART
OF OUTPATIENT HOSPITAL
SERVICES.—For purposes of subsection (a), in deter-
mining whether clinical diagnostic laboratory services
are furnished as part of outpatient services of a hos-
pital, the Secretary [of Health and Human Services]
shall apply the same rules that are used to determine
whether clinical diagnostic laboratory services are fur-
nished as an outpatient critical access hospital service
under section 1834(g)(4) of the Social Security Act (42
U.S.C. 1395m(g)(4)).’’
[Pub. L. 109–432, div. B, title I, § 105, Dec. 20, 2006, 120
Stat. 2981, provided that the amendment made by that
section to section 416(b) of Pub. L. 108–173, set out
above, is effective as if included in the enactment of
section 416 of Pub. L. 108–173.]
GAO REPORT ON PAYMENTS FOR BRACHYTHERAPY
DEVICES
Pub. L. 108–173, title VI, § 621(b)(3), Dec. 8, 2003, 117
Stat. 2311, provided that: ‘‘The Comptroller General of
the United States shall conduct a study to determine
appropriate
payment
amounts
under
section
1833(t)(16)(C) of the Social Security Act [42 U.S.C.
1395l(t)(16)(C)], as added by paragraph (1), for devices of
brachytherapy. Not later than January 1, 2005, the
Comptroller General shall submit to Congress and the
Secretary [of Health and Human Services] a report on
the study conducted under this paragraph, and shall in-
clude specific recommendations for appropriate pay-
ments for such devices.’’
MORATORIUM ON PHYSICAL THERAPY SERVICES CAPS IN
2003
Pub. L. 108–173, title VI, § 624(a)(2), Dec. 8, 2003, 117
Stat. 2317, provided that: ‘‘For the period beginning on
the date of the enactment of this Act [Dec. 8, 2003] and
ending of [sic] December 31, 2003, the Secretary [of
Health and Human Services] shall not apply the provi-
sions of paragraphs (1), (2), and (3) of section 1833(g) [42
U.S.C. 1395l(g)] to expenses incurred with respect to
services described in such paragraphs during such pe-
riod. Nothing in the preceding sentence shall be con-
strued as affecting the application of such paragraphs
by the Secretary before the date of the enactment of
this Act.’’
PROMPT
SUBMISSION
OF
OVERDUE
REPORTS
ON
PAY-
MENT
AND
UTILIZATION
OF
OUTPATIENT
THERAPY
SERVICES
Pub. L. 108–173, title VI, § 624(b), Dec. 8, 2003, 117 Stat.
2317, provided that: ‘‘Not later than March 31, 2004, the
Secretary [of Health and Human Services] shall submit
to Congress the reports required under section 4541(d)(2)
of the Balanced Budget Act of 1997 (Public Law 105–33;
111 Stat. 457) [set out as a note under this section] (re-
lating to alternatives to a single annual dollar cap on
outpatient therapy) and under section 221(d) of the
Medicare, Medicaid, and SCHIP Balanced Budget Re-
finement Act of 1999 (Appendix F, 113 Stat. 1501A–352),
as enacted into law by section 1000(a)(6) of Public Law
106–113 [set out as a note under this section] (relating
to utilization patterns for outpatient therapy).’’
GAO STUDY OF AMBULATORY SURGICAL CENTER
PAYMENTS
Pub. L. 108–173, title VI, § 626(d), Dec. 8, 2003, 117 Stat.
2319, provided that:
‘‘(1) STUDY.—
‘‘(A) IN GENERAL.—The Comptroller General of the
United States shall conduct a study that compares
the relative costs of procedures furnished in ambula-
tory surgical centers to the relative costs of proce-
dures furnished in hospital outpatient departments
under section 1833(t) of the Social Security Act (42
U.S.C. 1395l(t)). The study shall also examine how ac-
curately ambulatory payment categories reflect pro-
cedures furnished in ambulatory surgical centers.
‘‘(B) CONSIDERATION
OF
ASC
DATA.—In conducting
the study under paragraph (1), the Comptroller Gen-
eral shall consider data submitted by ambulatory
surgical centers regarding the matters described in
clauses (i) through (iii) of paragraph (2)(B).
‘‘(2) REPORT AND RECOMMENDATIONS.—
‘‘(A) REPORT.—Not later than January 1, 2005, the
Comptroller General shall submit to Congress a re-
port on the study conducted under paragraph (1).
‘‘(B)
RECOMMENDATIONS.—The
report
submitted
under subparagraph (A) shall include recommenda-
tions on the following matters:
‘‘(i) The appropriateness of using the groups of
covered services and relative weights established
under the outpatient prospective payment system
as the basis of payment for ambulatory surgical
centers.
‘‘(ii) If the relative weights under such hospital
outpatient prospective payment system are appro-
priate for such purpose—
‘‘(I) whether the payment rates for ambulatory
surgical centers should be based on a uniform per-
centage of the payment rates or weights under
such outpatient system; or
‘‘(II) whether the payment rates for ambulatory
surgical centers should vary, or the weights
should be revised, based on specific procedures or
types of services (such as ophthalmology and pain
management services).
‘‘(iii) Whether a geographic adjustment should be
used for payment of services furnished in ambula-
tory surgical centers, and if so, the labor and
nonlabor shares of such payment.’’
DEMONSTRATION PROJECT FOR COVERAGE OF CERTAIN
PRESCRIPTION DRUGS AND BIOLOGICALS
Pub. L. 108–173, title VI, § 641, Dec. 8, 2003, 117 Stat.
2321, provided that:
‘‘(a) DEMONSTRATION
PROJECT.—The Secretary [of
Health and Human Services] shall conduct a dem-
onstration project under part B of title XVIII of the So-
cial Security Act [42 U.S.C. 1395j et seq.] under which
payment is made for drugs or biologicals that are pre-
scribed as replacements for drugs and biologicals de-
scribed in section 1861(s)(2)(A) or 1861(s)(2)(Q) of such
Act (42 U.S.C. 1395x(s)(2)(A), 1395x(s)(2)(Q)), or both, for
which payment is made under such part. Such project
shall provide for cost-sharing applicable with respect to
such drugs or biologicals in the same manner as cost-
sharing applies with respect to part D [part D of this
subchapter] drugs under standard prescription drug
coverage (as defined in section 1860D–2(b) of the Social
Security Act [42 U.S.C. 1395w–102(b)], as added by sec-
tion 101(a)).
‘‘(b) DEMONSTRATION PROJECT SITES.—The project es-
tablished under this section shall be conducted in sites
selected by the Secretary.
‘‘(c) DURATION.—The Secretary shall conduct the
demonstration project for the 2-year period beginning
on the date that is 90 days after the date of the enact-
ment of this Act [Dec. 8, 2003], but in no case may the
project extend beyond December 31, 2005.
‘‘(d) LIMITATION.—Under the demonstration project
over the duration of the project, the Secretary may not
provide—
‘‘(1) coverage for more than 50,000 patients; and
‘‘(2) more than $500,000,000 in funding.
‘‘(e) REPORT.—Not later than July 1, 2006, the Sec-
retary shall submit to Congress a report on the project.
The report shall include an evaluation of patient access
to care and patient outcomes under the project, as well
as an analysis of the cost effectiveness of the project,
including an evaluation of the costs savings (if any) to
the medicare program attributable to reduced physi-
cians’ services and hospital outpatient departments
services for administration of the biological.’’
PAYMENT
FOR
PANCREATIC
ISLET
CELL
INVESTIGA-
TIONAL
TRANSPLANTS
FOR
MEDICARE
BENEFICIARIES
IN CLINICAL TRIALS
Pub. L. 108–173, title VII, § 733, Dec. 8, 2003, 117 Stat.
2352, provided that:
Page 3091
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
‘‘(a) CLINICAL TRIAL.—
‘‘(1) IN
GENERAL.—The Secretary [of Health and
Human Services], acting through the National Insti-
tute of Diabetes and Digestive and Kidney Disorders,
shall conduct a clinical investigation of pancreatic
islet cell transplantation which includes medicare
beneficiaries.
‘‘(2) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such
sums as may be necessary to conduct the clinical in-
vestigation under paragraph (1).
‘‘(b) MEDICARE PAYMENT.—Not earlier than October 1,
2004, the Secretary shall pay for the routine costs as
well as transplantation and appropriate related items
and services (as described in subsection (c)) in the case
of medicare beneficiaries who are participating in a
clinical trial described in subsection (a) as if such
transplantation were covered under title XVIII of such
Act [42 U.S.C. 1395 et seq.] and as would be paid under
part A or part B of such title [42 U.S.C. 1395c et seq.,
1395j et seq.] for such beneficiary.
‘‘(c) SCOPE OF PAYMENT.—For purposes of subsection
(b):
‘‘(1) The term ‘routine costs’ means reasonable and
necessary routine patient care costs (as defined in the
Centers for Medicare & Medicaid Services Coverage
Issues Manual, section 30–1), including immuno-
suppressive drugs and other followup care.
‘‘(2) The term ‘transplantation and appropriate re-
lated items and services’ means items and services
related to the acquisition and delivery of the pan-
creatic islet cell transplantation, notwithstanding
any national noncoverage determination contained in
the Centers for Medicare & Medicaid Services Cov-
erage Issues Manual.
‘‘(3) The term ‘medicare beneficiary’ means an indi-
vidual who is entitled to benefits under part A of title
XVIII of the Social Security Act [42 U.S.C. 1395c et
seq.], or enrolled under part B of such title [42 U.S.C.
1395j et seq.], or both.
‘‘(d) CONSTRUCTION.—The provisions of this section
shall not be construed—
‘‘(1) to permit payment for partial pancreatic tissue
or islet cell transplantation under title XVIII of the
Social Security Act [42 U.S.C. 1395 et seq.] other than
payment as described in subsection (b); or
‘‘(2) as authorizing or requiring coverage or pay-
ment conveying—
‘‘(A) benefits under part A of such title [42 U.S.C.
1395c et seq.] to a beneficiary not entitled to such
part A; or
‘‘(B) benefits under part B of such title [42 U.S.C.
1395j et seq.] to a beneficiary not enrolled in such
part B.’’
GAO STUDY OF REDUCTION IN MEDIGAP PREMIUM
LEVELS RESULTING FROM REDUCTIONS IN COINSURANCE
Pub. L. 106–554, § 1(a)(6) [title I, § 111(c)], Dec. 21, 2000,
114 Stat. 2763, 2763A–473, related to GAO study of reduc-
tion in medigap premium levels resulting from reduc-
tions in coinsurance and subsequent report to Congress,
prior to repeal by Pub. L. 114–301, § 2(b), Dec. 16, 2016, 130
Stat. 1514.
MEDPAC STUDY ON LOW-VOLUME, ISOLATED RURAL
HEALTH CARE PROVIDERS
Pub. L. 106–554, § 1(a)(6) [title II, § 225], Dec. 21, 2000,
114 Stat. 2763, 2763A–490, provided that:
‘‘(a) STUDY.—The Medicare Payment Advisory Com-
mission shall conduct a study on the effect of low pa-
tient and procedure volume on the financial status of
low-volume, isolated rural health care providers par-
ticipating in the medicare program under title XVIII of
the Social Security Act [42 U.S.C. 1395 et seq.].
‘‘(b) REPORT.—Not later than 18 months after the date
of the enactment of this Act [Dec. 21, 2000], the Com-
mission shall submit to Congress a report on the study
conducted under subsection (a) indicating—
‘‘(1) whether low-volume, isolated rural health care
providers are having, or may have, significantly de-
creased medicare margins or other financial difficul-
ties resulting from any of the payment methodologies
described in subsection (c);
‘‘(2) whether the status as a low-volume, isolated
rural health care provider should be designated under
the medicare program and any criteria that should be
used to qualify for such a status; and
‘‘(3) any changes in the payment methodologies de-
scribed in subsection (c) that are necessary to provide
appropriate reimbursement under the medicare pro-
gram to low-volume, isolated rural health care pro-
viders (as designated pursuant to paragraph (2)).
‘‘(c) PAYMENT METHODOLOGIES DESCRIBED.—The pay-
ment methodologies described in this subsection are
the following:
‘‘(1) The prospective payment system for hospital
outpatient department services under section 1833(t)
of the Social Security Act (42 U.S.C. 1395l(t)).
‘‘(2) The fee schedule for ambulance services under
section 1834(l) of such Act (42 U.S.C. 1395m(l)).
‘‘(3) The prospective payment system for inpatient
hospital services under section 1886 of such Act (42
U.S.C. 1395ww).
‘‘(4) The prospective payment system for routine
service costs of skilled nursing facilities under sec-
tion 1888(e) of such Act (42 U.S.C. 1395yy(e)).
‘‘(5) The prospective payment system for home
health services under section 1895 of such Act (42
U.S.C. 1395fff).’’
SPECIAL RULE FOR PAYMENT FOR 2001
Pub. L. 106–554, § 1(a)(6) [title IV, § 401(c)], Dec. 21,
2000, 114 Stat. 2763, 2763A–503, provided that: ‘‘Notwith-
standing the amendment made by subsection (a)
[amending this section], for purposes of making pay-
ments under section 1833(t) of the Social Security Act
(42 U.S.C. 1395l(t)) for covered OPD services furnished
during 2001, the medicare OPD fee schedule amount
under such section—
‘‘(1) for services furnished on or after January 1,
2001, and before April 1, 2001, shall be the medicare
OPD fee schedule amount for 2001 as determined
under the provisions of law in effect on the day before
the date of the enactment of this Act [Dec. 21, 2000];
and
‘‘(2) for services furnished on or after April 1, 2001,
and before January 1, 2002, shall be the fee schedule
amount (as determined taking into account the
amendment made by subsection (a)), increased by a
transitional percentage allowance equal to 0.32 per-
cent (to account for the timing of implementation of
the full market basket update).’’
TRANSITION PROVISIONS APPLICABLE TO SUBSECTION
(t)(6)(B)
Pub. L. 106–554, § 1(a)(6) [title IV, § 402(d)], Dec. 21,
2000, 114 Stat. 2763, 2763A–506, provided that:
‘‘(1) IN GENERAL.—In the case of a medical device pro-
vided as part of a service (or group of services) fur-
nished during the period before initial categories are
implemented under subparagraph (B)(i) of section
1833(t)(6) of the Social Security Act [42 U.S.C.
1395l(t)(6)(B)(i)] (as amended by subsection (a)), pay-
ment shall be made for such device under such section
in accordance with the provisions in effect before the
date of the enactment of this Act [Dec. 21, 2000]. In ad-
dition, beginning on the date that is 30 days after the
date of the enactment of this Act, payment shall be
made for such a device that is not included in a pro-
gram memorandum described in such subparagraph if
the Secretary of Health and Human Services deter-
mines that the device (including a device that would
have been included in such program memoranda but for
the requirement of subparagraph (A)(iv)(I) of that sec-
tion) is likely to be described by such an initial cat-
egory.
‘‘(2) APPLICATION
OF
CURRENT
PROCESS.—Notwith-
standing any other provision of law, the Secretary
shall continue to accept applications with respect to
Page 3092
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
medical devices under the process established pursuant
to paragraph (6) of section 1833(t) of the Social Security
Act [42 U.S.C. 1395l(t)(6)] (as in effect on the day before
the date of the enactment of this Act [Dec. 21, 2000])
through December 1, 2000, and any device—
‘‘(A) with respect to which an application was sub-
mitted (pursuant to such process) on or before such
date; and
‘‘(B) that meets the requirements of clause (ii) or
(iv) of subparagraph (A) of such paragraph (as deter-
mined pursuant to such process),
shall be treated as a device with respect to which an
initial category is required to be established under sub-
paragraph (B)(i) of such paragraph (as amended by sub-
section (a)(2)).’’
STUDY ON STANDARDS FOR SUPERVISION OF PHYSICAL
THERAPIST ASSISTANTS
Pub. L. 106–554, § 1(a)(6) [title IV, § 421(c)], Dec. 21,
2000, 114 Stat. 2763, 2763A–516, required the Secretary of
Health and Human Services to conduct a study of the
implications of eliminating the ‘‘in the room’’ super-
vision requirement for medicare payment for services
of physical therapy assistants who are supervised by
physical therapists and of such requirement on the cap
imposed under subsec. (g) of this section on physical
therapy services, and to submit to Congress a report on
the study no later than 18 months after Dec. 21, 2000.
DELAY IN IMPLEMENTATION OF PROSPECTIVE PAYMENT
SYSTEM FOR AMBULATORY SURGICAL CENTERS
Pub. L. 106–554, § 1(a)(6) [title IV, § 424(a)], Dec. 21,
2000, 114 Stat. 2763, 2763A–518, provided that: ‘‘The Sec-
retary of Health and Human Services may not imple-
ment a revised prospective payment system for services
of ambulatory surgical facilities under section 1833(i) of
the Social Security Act (42 U.S.C. 1395l(i)) before Janu-
ary 1, 2002.’’
MEDPAC STUDY
AND
REPORT
ON
MEDICARE
REIM-
BURSEMENT
FOR
SERVICES
PROVIDED
BY
CERTAIN
PROVIDERS
Pub. L. 106–554, § 1(a)(6) [title IV, § 434], Dec. 21, 2000,
114 Stat. 2763, 2763A–526, provided that:
‘‘(a) STUDY.—The Medicare Payment Advisory Com-
mission shall conduct a study on the appropriateness of
the current payment rates under the medicare program
under title XVIII of the Social Security Act [42 U.S.C.
1395 et seq.] for services provided by a—
‘‘(1) certified nurse-midwife (as defined in sub-
section (gg)(2) of section 1861 of such Act (42 U.S.C.
1395x));
‘‘(2) physician assistant (as defined in subsection
(aa)(5)(A) of such section);
‘‘(3) nurse practitioner (as defined in such sub-
section); and
‘‘(4) clinical nurse specialist (as defined in sub-
section (aa)(5)(B) of such section).
The study shall separately examine the appropriateness
of such payment rates for orthopedic physician assist-
ants, taking into consideration the requirements for
accreditation, training, and education.
‘‘(b) REPORT.—Not later than 18 months after the date
of the enactment of this Act [Dec. 21, 2000], the Com-
mission shall submit to Congress a report on the study
conducted under subsection (a), together with any rec-
ommendations for legislation that the Commission de-
termines to be appropriate as a result of such study.’’
MEDPAC STUDY ON ACCESS TO OUTPATIENT PAIN
MANAGEMENT SERVICES
Pub. L. 106–554, § 1(a)(6) [title IV, § 438], Dec. 21, 2000,
114 Stat. 2763, 2763A–528, provided that:
‘‘(a) STUDY.—The Medicare Payment Advisory Com-
mission shall conduct a study on the barriers to cov-
erage and payment for outpatient interventional pain
medicine procedures under the medicare program under
title XVIII of the Social Security Act [42 U.S.C. 1395 et
seq.]. Such study shall examine—
‘‘(1) the specific barriers imposed under the medi-
care program on the provision of pain management
procedures in hospital outpatient departments, am-
bulatory surgery centers, and physicians’ offices; and
‘‘(2) the consistency of medicare payment policies
for pain management procedures in those different
settings.
‘‘(b) REPORT.—Not later than 1 year after the date of
the enactment of this Act [Dec. 21, 2000], the Commis-
sion shall submit to Congress a report on the study.’’
ESTABLISHMENT OF CODING AND PAYMENT PROCEDURES
FOR NEW CLINICAL DIAGNOSTIC LABORATORY TESTS
AND OTHER ITEMS ON A FEE SCHEDULE
Pub. L. 106–554, § 1(a)(6) [title V, § 531(b)], Dec. 21, 2000,
114 Stat. 2763, 2763A–547, provided that: ‘‘Not later than
1 year after the date of the enactment of this Act [Dec.
21, 2000], the Secretary of Health and Human Services
shall establish procedures for coding and payment de-
terminations for the categories of new clinical diag-
nostic laboratory tests and new durable medical equip-
ment under part B of title XVIII of the Social Security
Act [42 U.S.C. 1395j et seq.] that permit public consulta-
tion in a manner consistent with the procedures estab-
lished for implementing coding modifications for
ICD–9–CM.’’
REPORT ON PROCEDURES USED FOR ADVANCED,
IMPROVED TECHNOLOGIES
Pub. L. 106–554, § 1(a)(6) [title V, § 531(c)], Dec. 21, 2000,
114 Stat. 2763, 2763A–547, provided that: ‘‘Not later than
1 year after the date of the enactment of this Act [Dec.
21, 2000], the Secretary of Health and Human Services
shall submit to Congress a report that identifies the
specific procedures used by the Secretary under part B
of title XVIII of the Social Security Act [42 U.S.C. 1395j
et seq.] to adjust payments for clinical diagnostic lab-
oratory tests and durable medical equipment which are
classified to existing codes where, because of an ad-
vance in technology with respect to the test or equip-
ment, there has been a significant increase or decrease
in the resources used in the test or in the manufacture
of the equipment, and there has been a significant im-
provement in the performance of the test or equipment.
The report shall include such recommendations for
changes in law as may be necessary to assure fair and
appropriate payment levels under such part for such
improved tests and equipment as reflects increased
costs necessary to produce improved results.’’
CONGRESSIONAL INTENTION REGARDING BASE AMOUNTS
IN APPLYING HOPD PPS
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 201(l)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–341, provided that:
‘‘With respect to determining the amount of copay-
ments described in paragraph (3)(A)(ii) of section 1833(t)
of the Social Security Act [42 U.S.C. 1395l(t)(3)(A)(ii)],
as added by section 4523(a) of BBA [the Balanced Budg-
et Act of 1997, Pub. L. 105–33], Congress finds that such
amount should be determined without regard to such
section, in a budget neutral manner with respect to ag-
gregate payments to hospitals, and that the Secretary
of Health and Human Services has the authority to de-
termine such amount without regard to such section.’’
STUDY AND REPORT TO CONGRESS REGARDING SPECIAL
TREATMENT
OF
RURAL
AND
CANCER
HOSPITALS
IN
PROSPECTIVE PAYMENT SYSTEM
FOR HOSPITAL OUT-
PATIENT DEPARTMENT SERVICES
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 203], Nov.
29, 1999, 113 Stat. 1536, 1501A–344, provided that:
‘‘(a) STUDY.—
‘‘(1) IN GENERAL.—The Medicare Payment Advisory
Commission (referred to in this section as ‘MedPAC’)
shall conduct a study to determine the appropriate-
ness (and the appropriate method) of providing pay-
ments to hospitals described in paragraph (2) for cov-
ered OPD services (as defined in paragraph (1)(B) of
section 1833(t) of the Social Security Act (42 U.S.C.
Page 3093
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
1395l(t))) based on the prospective payment system es-
tablished by the Secretary in accordance with such
section.
‘‘(2) HOSPITALS DESCRIBED.—The hospitals described
in this paragraph are the following:
‘‘(A) A medicare-dependent, small rural hospital
(as defined in section 1886(d)(5)(G)(iv) of the Social
Security Act (42 U.S.C. 1395ww(d)(5)(G)(iv))).
‘‘(B) A sole community hospital (as defined in sec-
tion
1886(d)(5)(D)(iii)
of
such
Act
(42
U.S.C.
1395ww(d)(5)(D)(iii))).
‘‘(C) Rural health clinics (as defined in section
1861(aa)(2) of such Act (42 U.S.C. 1395x(aa)(2)).
‘‘(D) Rural referral centers (as so classified under
section
1886(d)(5)(C)
of
such
Act
(42
U.S.C.
1395ww(d)(5)(C)).
‘‘(E) Any other rural hospital with not more than
100 beds.
‘‘(F) Any other rural hospital that the Secretary
determines appropriate.
‘‘(G)
A
hospital
described
in
section
1886(d)(1)(B)(v)
of
such
Act
(42
U.S.C.
1395ww(d)(1)(B)(v)).
‘‘(b) REPORT.—Not later than 2 years after the date of
the enactment of this Act [Nov. 29, 1999], MedPAC shall
submit a report to the Secretary of Health and Human
Services and Congress on the study conducted under
subsection (a), together with any recommendations for
legislation that MedPAC determines to be appropriate
as a result of such study.
‘‘(c) COMMENTS.—Not later than 60 days after the date
on which MedPAC submits the report under subsection
(b) to the Secretary of Health and Human Services, the
Secretary shall submit comments on such report to
Congress.’’
GAO STUDY ON RESOURCES REQUIRED TO PROVIDE
SAFE AND EFFECTIVE OUTPATIENT CANCER THERAPY
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 213], Nov.
29, 1999, 113 Stat. 1536, 1501A–350, provided that:
‘‘(a) STUDY.—The Comptroller General of the United
States shall conduct a nationwide study to determine
the physician and non-physician clinical resources nec-
essary to provide safe outpatient cancer therapy serv-
ices and the appropriate payment rates for such serv-
ices under the medicare program. In making such de-
termination, the Comptroller General shall—
‘‘(1) determine the adequacy of practice expense rel-
ative value units associated with the utilization of
those clinical resources;
‘‘(2) determine the adequacy of work units in the
practice expense formula; and
‘‘(3) assess various standards to assure the provision
of safe outpatient cancer therapy services.
‘‘(b) REPORT TO CONGRESS.—The Comptroller General
shall submit to Congress a report on the study con-
ducted under subsection (a). The report shall include
recommendations regarding practice expense adjust-
ments to the payment methodology under part B of
title XVIII of the Social Security Act [42 U.S.C. 1395j et
seq.], including the development and inclusion of ade-
quate work units to assure the adequacy of payment
amounts for safe outpatient cancer therapy services.
The study shall also include an estimate of the cost of
implementing such recommendations.’’
FOCUSED MEDICAL REVIEWS OF CLAIMS DURING
MORATORIUM PERIOD
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 221(a)(2)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–351, as amended by
Pub. L. 106–554, § 1(a)(6) [title IV, § 421(b)], Dec. 21, 2000,
114 Stat. 2763, 2763A–516, provided that: ‘‘During years
in which paragraph (4) of section 1833(g) of the Social
Security Act (42 U.S.C. 1395l(g)) applies, the Secretary
of Health and Human Services shall conduct focused
medical reviews of claims for reimbursement for serv-
ices described in paragraph (1) or (3) of such section,
with an emphasis on such claims for services that are
provided to residents of skilled nursing facilities.’’
STUDY AND REPORT ON UTILIZATION
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 221(d)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–352, provided that:
‘‘(1) STUDY.—
‘‘(A) IN
GENERAL.—The Secretary of Health and
Human Services shall conduct a study which com-
pares—
‘‘(i) utilization patterns (including nationwide
patterns, and patterns by region, types of settings,
and diagnosis or condition) of outpatient physical
therapy services, outpatient occupational therapy
services, and speech-language pathology services
that are covered under the medicare program under
title XVIII of the Social Security Act (42 U.S.C.
1395) [42 U.S.C. 1395 et seq.] and provided on or after
January 1, 2000; with
‘‘(ii) such patterns for such services that were
provided in 1998 and 1999.
‘‘(B) REVIEW OF CLAIMS.—In conducting the study
under this subsection the Secretary of Health and
Human Services shall review a statistically signifi-
cant number of claims for reimbursement for the
services described in subparagraph (A).
‘‘(2) REPORT.—Not later than June 30, 2001, the Sec-
retary of Health and Human Services shall submit a re-
port to Congress on the study conducted under para-
graph (1), together with any recommendations for legis-
lation that the Secretary determines to be appropriate
as a result of such study.’’
PHASE-IN OF PPS FOR AMBULATORY SURGICAL CENTERS
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 226], Nov.
29, 1999, 113 Stat. 1536, 1501A–354, as amended by Pub. L.
106–554, § 1(a)(6) [title IV, § 424(b), (c)], Dec. 21, 2000, 114
Stat. 2763, 2763A–518, 2763A–519, provided that: ‘‘If the
Secretary of Health and Human Services implements a
revised prospective payment system for services of am-
bulatory surgical facilities under section 1833(i) of the
Social Security Act (42 U.S.C. 1395l(i)), prior to incor-
porating data from the 1999 Medicare cost survey or a
subsequent cost survey, such system shall be imple-
mented in a manner so that—
‘‘(1) in the first year of its implementation, only a
proportion (specified by the Secretary and not to ex-
ceed one-fourth) of the payment for such services
shall be made in accordance with such system and
the remainder shall be made in accordance with cur-
rent regulations; and
‘‘(2) in each of the following 2 years a proportion
(specified by the Secretary and not to exceed one-half
and three-fourths, respectively) of the payment for
such services shall be made under such system and
the remainder shall be made in accordance with cur-
rent regulations.
By not later than January 1, 2003, the Secretary shall
incorporate data from a 1999 medicare cost survey or a
subsequent cost survey for purposes of implementing or
revising such system.’’
MEDPAC STUDY ON POSTSURGICAL RECOVERY CARE
CENTER SERVICES
Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 229(a)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–356, provided that:
‘‘(1) IN
GENERAL.—The Medicare Payment Advisory
Commission shall conduct a study on the cost-effec-
tiveness and efficacy of covering under the medicare
program under title XVIII of the Social Security Act
[42 U.S.C. 1395 et seq.] services of a post-surgical recov-
ery care center (that provides an intermediate level of
recovery care following surgery). In conducting such
study, the Commission shall consider data on these
centers gathered in demonstration projects.
‘‘(2) REPORT.—Not later than 1 year after the date of
the enactment of this Act [Nov. 29,1999], the Commis-
sion shall submit to Congress a report on such study
and shall include in the report recommendations on the
feasibility, costs, and savings of covering such services
under the medicare program.’’
Page 3094
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
MEDICARE REIMBURSEMENT FOR TELEHEALTH SERVICES
Pub. L. 105–33, title IV, § 4206, Aug. 5, 1997, 111 Stat.
377, as amended by Pub. L. 106–554, § 1(a)(6) [title II,
§ 223(a)], Dec. 21, 2000, 114 Stat. 2763, 2763A–487, provided
that:
‘‘(a) IN GENERAL.—For services furnished on and after
January 1, 1999, and before October 1, 2001, the Sec-
retary of Health and Human Services shall make pay-
ments from the Federal Supplementary Medical Insur-
ance Trust Fund under part B of title XVIII of the So-
cial Security Act (42 U.S.C. 1395j et seq.) in accordance
with the methodology described in subsection (b) for
professional consultation via telecommunications sys-
tems with a physician (as defined in section 1861(r) of
such Act (42 U.S.C. 1395x(r)) or a practitioner (described
in
section
1842(b)(18)(C)
of
such
Act
(42
U.S.C.
1395u(b)(18)(C)) furnishing a service for which payment
may be made under such part to a beneficiary under
the medicare program residing in a county in a rural
area (as defined in section 1886(d)(2)(D) of such Act (42
U.S.C. 1395ww(d)(2)(D))) that is designated as a health
professional shortage area under section 332(a)(1)(A) of
the Public Health Service Act (42 U.S.C. 254e(a)(1)(A)),
notwithstanding that the individual physician or prac-
titioner providing the professional consultation is not
at the same location as the physician or practitioner
furnishing the service to that beneficiary.
‘‘(b) METHODOLOGY FOR DETERMINING AMOUNT OF PAY-
MENTS.—Taking into account the findings of the report
required under section 192 of the Health Insurance
Portability and Accountability Act of 1996 (Public Law
104–191; 110 Stat. 1988), the findings of the report re-
quired under paragraph (c), and any other findings re-
lated to the clinical efficacy and cost-effectiveness of
telehealth applications, the Secretary shall establish a
methodology for determining the amount of payments
made under subsection (a) within the following param-
eters:
‘‘(1) The payment shall [be] shared between the re-
ferring physician or practitioner and the consulting
physician or practitioner. The amount of such pay-
ment shall not be greater than the current fee sched-
ule of the consulting physician or practitioner for the
health care services provided.
‘‘(2) The payment shall not include any reimburse-
ment for any telephone line charges or any facility
fees, and a beneficiary may not be billed for any such
charges or fees.
‘‘(3) The payment shall be made subject to the coin-
surance and deductible requirements under sub-
sections (a)(1) and (b) of section 1833 of the Social Se-
curity Act (42 U.S.C. 1395l).
‘‘(4) The payment differential of section 1848(a)(3) of
such Act (42 U.S.C. 1395w–4(a)(3)) shall apply to serv-
ices furnished by non-participating physicians. The
provisions of section 1848(g) of such Act (42 U.S.C.
1395w–4(g)) and section 1842(b)(18) of such Act (42
U.S.C. 1395u(b)(18)) shall apply. Payment for such
service shall be increased annually by the update fac-
tor for physicians’ services determined under section
1848(d) of such Act (42 U.S.C. 1395w–4(d)).
‘‘(c) SUPPLEMENTAL REPORT.—Not later than January
1, 1999, the Secretary shall submit a report to Congress
which shall contain a detailed analysis of—
‘‘(1) how telemedicine and telehealth systems are
expanding access to health care services;
‘‘(2) the clinical efficacy and cost-effectiveness of
telemedicine and telehealth applications;
‘‘(3) the quality of telemedicine and telehealth serv-
ices delivered; and
‘‘(4) the reasonable cost of telecommunications
charges incurred in practicing telemedicine and tele-
health in rural, frontier, and underserved areas.
‘‘(d) EXPANSION OF TELEHEALTH SERVICES FOR CERTAIN
MEDICARE BENEFICIARIES.—
‘‘(1) IN GENERAL.—Not later than January 1, 1999,
the Secretary shall submit a report to Congress that
examines the possibility of making payments from
the Federal Supplementary Medical Insurance Trust
Fund under part B of title XVIII of the Social Secu-
rity Act (42 U.S.C. 1395j et seq.) for professional con-
sultation via telecommunications systems with such
a physician or practitioner furnishing a service for
which payment may be made under such part to a
beneficiary described in paragraph (2), notwith-
standing that the individual physician or practitioner
providing the professional consultation is not at the
same location as the physician or practitioner fur-
nishing the service to that beneficiary.
‘‘(2) BENEFICIARY
DESCRIBED.—A beneficiary de-
scribed in this paragraph is a beneficiary under the
medicare program under title XVIII of the Social Se-
curity Act (42 U.S.C. 1395 et seq.) who does not reside
in a rural area (as so defined) that is designated as a
health professional shortage area under section
332(a)(1)(A) of the Public Health Service Act (42
U.S.C. 254e(a)(1)(A)), who is homebound or nursing
homebound, and for whom being transferred for
health care services imposes a serious hardship.
‘‘(3) REPORT.—The report described in paragraph (1)
shall contain a detailed statement of the potential
costs and savings to the medicare program of making
the payments described in that paragraph using var-
ious reimbursement schemes.’’
REPORT ON COVERAGE OF OUTPATIENT OCCUPATIONAL
THERAPY SERVICES
Pub. L. 105–33, title IV, § 4541(d)(2), Aug. 5, 1997, 111
Stat. 457, as amended by Pub. L. 106–113, div. B,
§ 1000(a)(6) [title II, § 221(c)(1)], Nov. 29, 1999, 113 Stat.
1536, 1501A–351, provided that: ‘‘Not later than January
1, 2001, the Secretary of Health and Human Services
shall submit to Congress a report that includes rec-
ommendations on—
‘‘(A) the establishment of a mechanism for assuring
appropriate utilization of outpatient physical ther-
apy services, outpatient occupational therapy serv-
ices, and speech-language pathology services that are
covered under the medicare program under title
XVIII of the Social Security Act (42 U.S.C. 1395) [42
U.S.C. 1395 et seq.]; and
‘‘(B) the establishment of an alternative payment
policy for such services based on classification of in-
dividuals by diagnostic category, functional status,
prior use of services (in both inpatient and outpatient
settings), and such other criteria as the Secretary de-
termines appropriate, in place of the uniform dollar
limitations specified in section 1833(g) of such Act [42
U.S.C. 1395l(g)], as amended by paragraph (1).
The recommendations shall include how such a mecha-
nism or policy might be implemented in a budget-neu-
tral manner.’’
[Pub. L. 106–113, div. B, § 1000(a)(6) [title II, § 221(c)(2)],
Nov. 29, 1999, 113 Stat. 1536, 1501A–352, provided that:
‘‘The amendment made by paragraph (1) [amending sec-
tion 4541(d)(2) of Pub. L. 105–33, set out above] shall
take effect as if included in the enactment of section
4541 of BBA [the Balanced Budget Act of 1997, Pub. L.
105–33].’’]
STUDY AND REPORT ON CLINICAL LABORATORY TESTS
Pub. L. 105–33, title IV, § 4553(c), Aug. 5, 1997, 111 Stat.
460, required the Secretary to request the Institute of
Medicine of the National Academy of Sciences to con-
duct a study of payments under part B of title XVIII of
the Social Security Act (42 U.S.C. 1395j et seq.) for clin-
ical laboratory tests, including a review of the ade-
quacy of the current methodology and recommenda-
tions regarding alternative payment systems analysis
and of the relationship between such payment systems
and access to high quality laboratory tests for medi-
care beneficiaries, including availability and access to
new testing methodologies, and to report to Congress
the results of the study and any recommendations for
legislation not later than 2 years after Aug. 5, 1997..’’
ADJUSTMENTS TO PAYMENT AMOUNTS FOR NEW
TECHNOLOGY INTRAOCULAR LENSES
Pub. L. 103–432, title I, § 141(b), Oct. 31, 1994, 108 Stat.
4425, provided that:
Page 3095
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
‘‘(1) ESTABLISHMENT
OF
PROCESS
FOR
REVIEW
OF
AMOUNTS.—Not later than 1 year after the date of the
enactment of this Act [Oct. 31, 1994], the Secretary of
Health and Human Services (in this subsection referred
to as the ‘Secretary’) shall develop and implement a
process under which interested parties may request re-
view by the Secretary of the appropriateness of the re-
imbursement
amount
provided
under
section
1833(i)(2)(A)(iii) of the Social Security Act [42 U.S.C.
1395l(i)(2)(A)(iii)] with respect to a class of new tech-
nology intraocular lenses. For purposes of the pre-
ceding sentence, an intraocular lens may not be treated
as a new technology lens unless it has been approved by
the Food and Drug Administration.
‘‘(2) FACTORS CONSIDERED.—In determining whether to
provide an adjustment of payment with respect to a
particular lens under paragraph (1), the Secretary shall
take into account whether use of the lens is likely to
result in reduced risk of intraoperative or post-
operative complication or trauma, accelerated post-
operative recovery, reduced induced astigmatism, im-
proved postoperative visual acuity, more stable post-
operative vision, or other comparable clinical advan-
tages.
‘‘(3) NOTICE AND COMMENT.—The Secretary shall pub-
lish notice in the Federal Register from time to time
(but no less often than once each year) of a list of the
requests that the Secretary has received for review
under this subsection, and shall provide for a 30-day
comment period on the lenses that are the subjects of
the requests contained in such notice. The Secretary
shall publish a notice of the Secretary’s determinations
with respect to intraocular lenses listed in the notice
within 90 days after the close of the comment period.
‘‘(4) EFFECTIVE
DATE
OF
ADJUSTMENT.—Any adjust-
ment of a payment amount (or payment limit) made
under this subsection shall become effective not later
than 30 days after the date on which the notice with re-
spect to the adjustment is published under paragraph
(3).’’
STUDY
OF
MEDICARE
COVERAGE
OF
PATIENT
CARE
COSTS ASSOCIATED WITH CLINICAL
TRIALS
OF NEW
CANCER THERAPIES
Pub. L. 103–432, title I, § 142, Oct. 31, 1994, 108 Stat.
4426, directed Secretary of Health and Human Services
to conduct a study, and to submit a report to Congress
not later than 2 years after Oct. 31, 1994, of effects of ex-
pressly covering under medicare program patient care
costs for beneficiaries enrolled in clinical trials of new
cancer therapies, where protocol for the trial has been
approved by the National Cancer Institute or met simi-
lar scientific and ethical standards, including approval
by an institutional review board.
STUDY OF ANNUAL CAP ON AMOUNT OF MEDICARE PAY-
MENT FOR OUTPATIENT PHYSICAL THERAPY AND OCCU-
PATIONAL THERAPY SERVICES
Pub. L. 103–432, title I, § 143, Oct. 31, 1994, 108 Stat.
4426, directed Secretary of Health and Human Services
to submit to Congress, not later than Jan. 1, 1996, study
and report on appropriateness of continuing annual
limitation on amount of payment for outpatient serv-
ices of independently practicing physical and occupa-
tional therapists under medicare program, which was
to include such recommendations for changes in such
annual limitation as Secretary found appropriate.
AMBULATORY SURGICAL CENTER SERVICES; INFLATION
UPDATE
Pub. L. 103–66, title XIII, § 13531, Aug. 10, 1993, 107
Stat. 586, provided that: ‘‘The Secretary of Health and
Human Services shall not provide for any inflation up-
date in the payment amounts under subparagraphs (A)
and (B) of section 1833(i)(2) of the Social Security Act
[42 U.S.C. 1395l(i)(2)(A), (B)] for fiscal year 1994 or for
fiscal year 1995.’’
FREEZE IN ALLOWANCE FOR INTRAOCULAR LENSES
Pub. L. 103–66, title XIII, § 13533, Aug. 10, 1993, 107
Stat. 587, provided that: ‘‘Notwithstanding section
1833(i)(2)(A)(iii) of the Social Security Act [42 U.S.C.
1395l(i)(2)(A)(iii)], the amount of payment determined
under such section for an intraocular lens inserted sub-
sequent to or during cataract surgery in an ambulatory
surgical center on or after January 1, 1994, and before
January 1, 1999, shall be equal to $150.’’
Pub. L. 101–508, title IV, § 4151(c)(3), Nov. 5, 1990, 104
Stat. 1388–73, as amended by Pub. L. 103–432, title I,
§ 141(d), Oct. 31, 1994, 108 Stat. 4426, provided that: ‘‘Not-
withstanding section 1833(i)(2)(A)(iii) of the Social Se-
curity Act [42 U.S.C. 1395l(i)(2)(A)(iii)], the amount of
payment determined under such section for an intra-
ocular lens inserted during or subsequent to cataract
surgery furnished to an individual in an ambulatory
surgical center on or after the date of the enactment of
this Act [Nov. 5, 1990] and on or before December 31,
1992, shall be equal to $200.’’
[Pub. L. 103–432, title I, § 141(d), Oct. 31, 1994, 108 Stat.
4426, provided that the amendment made by that sec-
tion to section 4151(c)(3) of Pub. L. 101–508, set out
above, is effective as if included in the enactment of
Pub. L. 101–508.]
REDUCTION IN PAYMENTS UNDER PART B DURING FINAL
TWO MONTHS OF 1990
Pub. L. 101–508, title IV, § 4158, Nov. 5, 1990, 104 Stat.
1388–89, provided that:
‘‘(a) IN GENERAL.—Notwithstanding any other provi-
sion of law (including any other provision of this Act,
other than subsection (b)(4)), payments under part B of
title XVIII of the Social Security Act [42 U.S.C. 1395j et
seq.] for items and services furnished during the period
beginning on November 1, 1990, and ending on December
31, 1990, shall be reduced by 2 percent, in accordance
with subsection (b).
‘‘(b) SPECIAL RULES FOR APPLICATION OF REDUCTION.—
‘‘(1) PAYMENT ON THE BASIS OF COST REPORTING PERI-
ODS.—In the case in which payment for services of a
provider of services is made under part B of such title
on a basis relating to the reasonable cost incurred for
the services during a cost reporting period of the pro-
vider, the reduction made under subsection (a) shall
be applied to payment for costs for such services in-
curred at any time during each cost reporting period
of the provider any part of which occurs during the
period described in such subsection, but only in the
same proportion as the fraction of the cost reporting
period that occurs during such period.
‘‘(2) NO INCREASE IN BENEFICIARY CHARGES IN ASSIGN-
MENT-RELATED
CASES.—If a reduction in payment
amounts is made under subsection (a) for items or
services for which payment under part B of such title
is made on an assignment-related basis (as defined in
section 1842(i)(1) of the Social Security Act [42 U.S.C.
1395u(i)(1)]), the person furnishing the items or serv-
ices shall be considered to have accepted payment of
the reasonable charge for the items or services, less
any reduction in payment amount made under sub-
section (a), as payment in full.
‘‘(3) TREATMENT OF PAYMENTS TO HEALTH MAINTE-
NANCE ORGANIZATIONS.—Subsection (a) shall not apply
to payments under risk-sharing contracts under sec-
tion 1876 of the Social Security Act [42 U.S.C.
1395mm] or under similar contracts under section 402
of the Social Security Amendments of 1967 [Pub. L.
90–248, enacting section 1395b–1 of this title and
amending section 1395ll of this title] or section 222 of
the Social Security Amendments of 1972 [Pub. L.
92–603, amending sections 1395b–1 and 1395ll of this
title and enacting provisions set out as a note under
section 1395b–1 of this title].’’
EFFECT ON STATE LAW
Conscientious objections of health care provider
under State law unaffected by enactment of subsecs.
(a)(1)(Q) and (f) of this section, see section 4206(c) of
Pub. L. 101–508, set out as a note under section 1395cc
of this title.
Page 3096
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
DEVELOPMENT OF CRITERIA REGARDING CONSULTATION
WITH A PHYSICIAN
Pub. L. 101–239, title VI, § 6113(c), Dec. 19, 1989, 103
Stat. 2217, as amended by Pub. L. 103–432, title I,
§ 147(b), Oct. 31, 1994, 108 Stat. 4429, provided that: ‘‘The
Secretary of Health and Human Services shall, taking
into consideration concerns for patient confidentiality,
develop criteria with respect to payment for qualified
psychologist services and clinical social worker serv-
ices for which payment may be made directly to the
psychologist or clinical social worker under part B of
title XVIII of the Social Security Act [42 U.S.C. 1395j et
seq.] under which such a psychologist or clinical social
worker must agree to consult with a patient’s attend-
ing physician in accordance with such criteria.’’
[Pub. L. 103–432, title I, § 147(b), Oct. 31, 1994, 108 Stat.
4429, provided that the amendment made by that sec-
tion to section 6113(c) of Pub. L. 101–239, set out above,
is effective with respect to services furnished on or
after Jan. 1, 1991.]
STUDY OF REIMBURSEMENT FOR AMBULANCE SERVICES
Pub. L. 101–239, title VI, § 6136, Dec. 19, 1989, 103 Stat.
2222, directed Secretary of Health and Human Services
to conduct a study to determine adequacy and appro-
priateness of payment amounts under this subchapter
for ambulance services and, not later than one year
after Dec. 19, 1989, submit a report to Congress on re-
sults of the study, with report to include such rec-
ommendations for changes in medicare payment policy
with respect to ambulance services as may be needed to
ensure access by medicare beneficiaries to quality am-
bulance services in metropolitan and rural areas.
PROPAC STUDY OF PAYMENTS FOR SERVICES IN
HOSPITAL OUTPATIENT DEPARTMENTS
Pub. L. 101–239, title VI, § 6137, Dec. 19, 1989, 103 Stat.
2223, directed Prospective Payment Assessment Com-
mission to conduct a study on payment under this sub-
chapter for hospital outpatient services and, not later
than July 1, 1990, and not later than Mar. 1, 1991, to sub-
mit reports to Congress on specified portions of the
study, with the reports to include such recommenda-
tions as the Commission deemed appropriate, prior to
repeal by Pub. L. 103–432, title I, § 147(c)(1), Oct. 31, 1994,
108 Stat. 4429.
BUDGET NEUTRALITY
Pub. L. 100–647, title VIII, § 8421(b), Nov. 10, 1988, 102
Stat. 3802, provided that: ‘‘The Secretary of Health and
Human Services shall adjust the fees for transportation
and personnel established under section 1833(h)(3)(B) of
the Social Security Act [42 U.S.C. 1395l(h)(3)(B)] for
tests not covered under the amendment made by sub-
section (a) [amending this section] in such manner that
the total cost of fees under such section is the same as
would have been the case without such amendment.’’
ADJUSTMENT OF CONTRACTS WITH PREPAID HEALTH
PLANS
For requirement that Secretary of Health and Human
Services modify contracts under subsection (a)(1)(A) of
this section to take into account amendments made by
Pub. L. 100–360 and that such organizations make ap-
propriate adjustments in their agreements with medi-
care beneficiaries to take into account such amend-
ments, see section 222 of Pub. L. 100–360, set out as a
note under section 1395mm of this title.
STUDY
AND REPORT
TO CONGRESS RESPECTING INCEN-
TIVE
PAYMENTS
FOR
PHYSICIANS’ SERVICES
FUR-
NISHED IN UNDERSERVED AREAS
Pub. L. 100–203, title IV, § 4043(b), Dec. 22, 1987, 101
Stat. 1330–86, directed Secretary of Health and Human
Services to study and report to Congress, by not later
than Jan. 1, 1990, on feasibility of making additional
payments described in section 1395l(m) of this title with
respect to physician services performed in health man-
power shortage areas located in urban areas, prior to
repeal by Pub. L. 101–508, title IV, § 4118(g)(1), Nov. 5,
1990, 104 Stat. 1388–70.
FEE SCHEDULES FOR PHYSICIAN PATHOLOGY SERVICES
Pub. L. 100–203, title IV, § 4050, Dec. 22, 1987, 101 Stat.
1330–92, directed Secretary of Health and Human Serv-
ices to develop a relative value scale and fee schedules
with updating index for payment of physician pathol-
ogy services under this part, and to report to commit-
tees of Congress not later than Apr. 1, 1989, on the
scale, schedules, and index, prior to repeal by Pub. L.
101–508, title IV, § 4104(b)(3), Nov. 5, 1990, 104 Stat.
1388–59.
APPLYING COPAYMENT AND DEDUCTIBLE TO CERTAIN
OUTPATIENT PHYSICIANS’ SERVICES
Pub. L. 100–203, title IV, § 4054, Dec. 22, 1987, 101 Stat.
1330–98, relating to payment under part B of title XVIII
of the Social Security Act (this part) for physicians’
services specified in subsec. (i) of this section and fur-
nished on or after Apr. 1, 1988, in an ambulatory sur-
gical center or hospital outpatient department on an
assignment-related basis, was negated in the amend-
ment of section 4054 by Pub. L. 100–360, title IV,
§ 411(f)(12)(A), July 1, 1988, 102 Stat. 781.
OTHER PHYSICIAN PAYMENT STUDIES
Pub. L. 100–203, title IV, § 4056(c), formerly § 4055(c),
Dec. 22, 1987, 101 Stat. 1330–99, as renumbered by Pub. L.
100–360, title IV, § 411(f)(14), July 1, 1988, 102 Stat. 781,
provided directed Secretary to (1) conduct a study of
changes in the payment system for physicians’ serv-
ices, under part B, that would be required for the im-
plementation of a national fee schedule for such serv-
ices furnished on or after Jan. 1, 1990, and report to
Congress on such study by not later than July 1, 1989,
(2) conduct a study of issues relating to the volume and
intensity of physicians’ services under part B and sub-
mit to Congress an interim report on such study not
later than May 1, 1988, and a final report on such study
not later than May 1, 1989, and (3) conduct a survey to
determine distribution of (A) the liabilities and expend-
itures for health care services of individuals entitled to
benefits under this subchapter, including liabilities for
charges (not paid on an assignment-related basis) in ex-
cess of the reasonable charge recognized, and (B) the
collection rates among different classes of physicians
for such liabilities, including collection rates for re-
quired coinsurance and for charges (not paid on an as-
signment-related basis) in excess of the reasonable
charge recognized, report to Congress on such study by
not later than July 1, 1990.
STUDY OF PAYMENT FOR CHEMOTHERAPY IN PHYSICIANS’
OFFICES
Pub. L. 100–203, title IV, § 4056(d), formerly § 4055(d),
Dec. 22, 1987, 101 Stat. 1330–99, as renumbered by Pub. L.
100–360, title IV, § 411(f)(14), July 1, 1988, 102 Stat. 781, di-
rected Secretary to study ways of modifying part B to
permit adequate payment under such part for costs as-
sociated with providing chemotherapy to cancer pa-
tients in physicians’ offices, with the Secretary to re-
port to Congress on results of study by not later than
Apr. 1, 1989, prior to repeal by Pub. L. 105–362, title VI,
§ 601(b)(7), Nov. 10, 1998, 112 Stat. 3286.
CLINICAL DIAGNOSTIC LABORATORY TESTS; LIMITATION
ON CHANGES IN FEE SCHEDULES
Pub. L. 100–203, title IV, § 4064(a), Dec. 22, 1987, 101
Stat. 1330–110, which provided 3-month freeze in fee
schedules for clinical laboratory diagnostic laboratory
tests under part B of title XVIII of the Social Security
Act (this part) and directed the Secretary of Health and
Human Services to not adjust the fee schedules estab-
lished under subsec. (h) of this section to take into ac-
count any increase in the consumer price index, was ne-
gated in the amendment of section 4064(a) by Pub. L.
100–360, title IV, § 411(g)(3)(A), July 1, 1988, 102 Stat. 783.
Page 3097
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395l
GAO STUDY OF FEE SCHEDULES
Pub. L. 100–203, title IV, § 4064(b)(4), Dec. 22, 1987, 101
Stat. 1330–110, directed Comptroller General to conduct
a study of level of fee schedules established for clinical
diagnostic laboratory services under subsec. (h)(2) of
this section to determine, based on costs of, and reve-
nues received for, such tests the appropriateness of
such schedules, with Comptroller General to report to
Congress on results of such study by not later than
Jan. 1, 1990, and with provision that suppliers of such
tests which fail to provide Comptroller General with
reasonable access to necessary records to carry out
study being subject to exclusion from the medicare pro-
gram under section 1320a–7(a) of this title.
AMOUNTS PAID FOR INDEPENDENT RURAL HEALTH
CLINIC SERVICES
Pub. L. 100–203, title IV, § 4067(b), Dec. 22, 1987, 101
Stat. 1330–113, provided that: ‘‘The Secretary of Health
and Human Services shall report to Congress, by not
later than March 1, 1989, on the adequacy of the
amounts paid under title XVIII of the Social Security
Act [42 U.S.C. 1395 et seq.] for rural health clinic serv-
ices provided by independent rural health clinics.’’
REPORT
ON ESTABLISHMENT
OF NATIONAL FEE SCHED-
ULES FOR PAYMENT OF CLINICAL DIAGNOSTIC LABORA-
TORY TESTS
Pub. L. 99–509, title IX, § 9339(b)(3), Oct. 21, 1986, 100
Stat. 2036, directed Secretary of Health and Human
Services to report to Congress, by not later than Apr.
1, 1988, on advisability and feasibility of, and method-
ology for, establishing national fee schedules for pay-
ment for clinical diagnostic laboratory tests under sec-
tion 1395l(h) of this title, prior to repeal by Pub. L.
101–508, title IV, § 4154(e)(3), Nov. 5, 1990, 104 Stat.
1388–86, effective as if included in enactment of Pub. L.
99–509.
STATE STANDARDS FOR DIRECTORS OF CLINICAL
LABORATORIES
Pub. L. 99–509, title IX, § 9339(d), Oct. 21, 1986, 100 Stat.
2037, provided that:
‘‘(1) IN GENERAL.—If a State (as defined for purposes
of title XVIII of the Social Security Act [42 U.S.C. 1395
et seq.]) provides for the licensing or other standards
with respect to the operation of clinical laboratories
(including such laboratories in hospitals) in the State
under which such a laboratory may be directed by an
individual with certain qualifications, nothing in such
title shall be construed as authorizing the Secretary of
Health and Human Services to require such a labora-
tory, as a condition of payment or participation under
such title, to be directed by an individual with other
qualifications.
‘‘(2) EFFECTIVE DATE.—Paragraph (1) shall take effect
on January 1, 1987.’’
TRANSITIONAL PROVISIONS FOR PAYMENT OF FEES FOR
CLINICAL DIAGNOSTIC LABORATORY TESTS
Pub. L. 99–272, title IX, § 9303(a)(3), Apr. 7, 1986, 100
Stat. 188, provided that: ‘‘The Secretary of Health and
Human Services shall provide that the annual adjust-
ment under section 1833(h) of the Social Security Act
[42 U.S.C. 1395l(h)] for 1986—
‘‘(A) shall take effect on January 1, 1987,
‘‘(B) shall apply for the 12-month period beginning
on that date, and
‘‘(C) shall take into account the percentage in-
crease or decrease in the Consumer Price Index for all
urban consumers (United States city average) occur-
ring over an 18-month period, rather than over a 12-
month period.’’
EXTENSION OF MEDICARE PHYSICIAN PAYMENT
PROVISIONS
Amount of payment under this part for physicians’
services furnished between Oct. 1, 1985, and Mar. 14,
1986, to be determined on the same basis as the amount
of such services furnished on Sept. 30, 1985, see section
5(b) of Pub. L. 99–107, as amended, set out as a note
under section 1395ww of this title.
FEE
SCHEDULES
FOR
DIAGNOSTIC
LABORATORY
TESTS
AND
FEASIBILITY
OF
DIRECT
PAYMENTS
TO
PHYSI-
CIANS; REPORT TO CONGRESS
Pub. L. 98–369, div. B, title III, § 2303(i), July 18, 1984,
98 Stat. 1066, provided that:
‘‘(1) The Comptroller General shall report to the Con-
gress on—
‘‘(A) the appropriateness of the fee schedules under
section 1833(h) of the Social Security Act [42 U.S.C.
1395l(h)] and their impact on the volume and quality
of clinical diagnostic laboratory tests;
‘‘(B) the potential impact of the adoption of a na-
tional fee schedule; and
‘‘(C) the potential impact of applying a national fee
schedule to clinical diagnostic laboratory tests pro-
vided by hospitals to their outpatients.
‘‘(2) The Secretary of Health and Human Services
shall report to the Congress with respect to the advis-
ability and feasibility of a system of direct payment to
any physician for all clinical diagnostic laboratory
tests ordered by such physician.
‘‘(3) The reports required by paragraphs (1) and (2)
shall be submitted not later than January 1, 1987.’’
PACEMAKER REIMBURSEMENT REVIEW AND REFORM
Pub. L. 98–369, div. B, title III, § 2304(a), July 18, 1984,
98 Stat. 1067, provided that:
‘‘(1) The Secretary of Health and Human Services
shall issue revisions to the current guidelines for the
payment under part B of title XVIII of the Social Secu-
rity Act [42 U.S.C. 1395j et seq.] for the transtelephonic
monitoring of cardiac pacemakers. Such revised guide-
lines shall include provisions regarding the specifica-
tions for and frequency of transtelephonic monitoring
procedures which will be found to be reasonable and
necessary.
‘‘(2)(A) Except as provided in subparagraph (B), if the
guidelines required by paragraph (1) have not been
issued and put into effect by October 1, 1984, and until
such guidelines have been issued and put into effect,
payment may not be made under part B of title XVIII
of the Social Security Act for transtelephonic moni-
toring procedures, with respect to a single-chamber
cardiac pacemaker powered by lithium batteries, con-
ducted more frequently than—
‘‘(i) weekly during the first month after implanta-
tion,
‘‘(ii) once every two months during the period rep-
resenting 80 percent of the estimated life of the im-
planted device, and
‘‘(iii) monthly thereafter.
‘‘(B) Subparagraph (A) shall not apply in cases where
the Secretary determines that special medical factors
(including possible evidence of pacemaker or lead mal-
function) justify more frequent transtelephonic moni-
toring procedures.’’
PAYMENT FOR PREADMISSION DIAGNOSTIC TESTING
PERFORMED IN PHYSICIAN’S OFFICE
Pub. L. 98–369, div. B, title III, § 2305(f), July 18, 1984,
98 Stat. 1070, provided that: ‘‘The amendments made by
this section [amending this section and enacting provi-
sions set out above] shall not be construed as prohib-
iting payment, subject to the applicable copayments,
under part B of title XVIII of the Social Security Act
[42 U.S.C. 1395j et seq.] for preadmission diagnostic
testing performed in a physician’s office to the extent
such testing is otherwise reimbursable under regula-
tions of the Secretary.’’
PROVIDERS
OF SERVICES TO CALCULATE
AND REPORT
LESSER-OF-COST-OR-CHARGES
DETERMINATIONS
SEPA-
RATELY WITH RESPECT
TO PAYMENTS UNDER PARTS
A AND B OF THIS SUBCHAPTER; ISSUANCE OF REGULA-
TIONS
For provision directing the Secretary to issue regula-
tions requiring providers of services to calculate and
Page 3098
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395m
report the lesser-of-cost-or-charges determinations sep-
arately with respect to payments for services under
parts A and B of this subchapter other than diagnostic
tests under subsec. (h) of this section, see section
2308(a) of Pub. L. 98–369, set out as a note under section
1395f of this title.
DETERMINATION OF NOMINAL CHARGES FOR APPLYING
NOMINALITY TEST
For provision directing the Secretary to provide, in
addition to other rules deemed appropriate, that
charges representing 60 percent or less of costs be con-
sidered
nominal
for
purposes
of
applying
the
nominality test under subsec. (a)(2)(B)(ii) of this sec-
tion, see section 2308(b)(1) of Pub. L. 98–369, set out as
a note under section 1395f of this title.
STUDY OF MEDICARE PART B PAYMENTS; COMPILATION
OF
CENTRALIZED
CHARGE
DATA
BASE; REPORT
TO
CONGRESS
Pub. L. 98–369, div. B, title III, § 2309, July 18, 1984, 98
Stat. 1074, directed Director of Office of Technology As-
sessment to conduct a study of physician reimburse-
ment under the Medicare program and make a report
not later than Dec. 31, 1985, covering findings and rec-
ommendations on methods by which payment amounts
and other program policies under the program might be
modified, and directed that Secretary of Health and
Human Services compile a centralized Medicare part B
charge data base to aid in the study.
MONITORING PROVISION OF HEPATITIS B VACCINE;
REVIEW OF CHANGES IN MEDICAL TECHNOLOGY
Pub. L. 98–369, div. B, title III, § 2323(e), July 18, 1984,
98 Stat. 1086, provided that: ‘‘The Secretary shall mon-
itor the provision of hepatitis B vaccine under part B
of title XVIII of the Social Security Act [42 U.S.C. 1395j
et seq.], and shall review any changes in medical tech-
nology which may have an effect on the amounts which
should be paid for such service.’’
REPORT ON PREADMISSION DIAGNOSTIC TESTING
EXPENSES
Pub. L. 96–499, title IX, § 932(b), Dec. 5, 1980, 94 Stat.
2635, required a report to Congress, no later than one
year after Dec. 5, 1980, on the policy respecting ex-
penses incurred for preadmission diagnostic testing fur-
nished to an individual at a hospital within seven days
of an individual’s admission to another hospital.
STUDY OF FEASIBILITY AND DESIRABILITY OF IMPOSING
COPAYMENT REQUIREMENT
ON RURAL HEALTH CLINIC
VISITS; REPORT NOT LATER THAN DECEMBER 13, 1978
Pub. L. 95–210, § 1(c), Dec. 13, 1977, 91 Stat. 1485, di-
rected Secretary of Health, Education, and Welfare to
conduct a study of the feasibility and desirability of
imposing a copayment for each visit to a rural health
clinic for rural health clinic services under this part
and that Secretary report to appropriate committee of
Congress, not later than one year after Dec. 13, 1977, on
such study.
PROHIBITION AGAINST PAYMENTS IN CASES OF NONENTI-
TLEMENT TO MONTHLY BENEFITS UNDER SUBCHAPTER
II OR SUSPENSION
OF BENEFITS
OF ALIENS OUTSIDE
THE UNITED STATES
Pub. L. 89–97, title I, § 104(b)(1), July 30, 1965, 79 Stat.
334, provided that: ‘‘No payments shall be made under
part B of title XVIII of the Social Security Act [42
U.S.C. 1395j et seq.] with respect to expenses incurred
by an individual during any month for which such indi-
vidual may not be paid monthly benefits under title II
of such Act [42 U.S.C. 401 et seq.] (or for which such
monthly benefits would be suspended if he were other-
wise entitled thereto) by reason of section 202(t) of such
Act [42 U.S.C. 402(t)] (relating to suspension of benefits
of aliens who are outside the United States).’’
§ 1395m. Special payment rules for particular
items and services
(a) Payment for durable medical equipment
(1) General rule for payment
(A) In general
With respect to a covered item (as defined
in paragraph (13)) for which payment is de-
termined under this subsection, payment
shall be made in the frequency specified in
paragraphs (2) through (7) and in an amount
equal to 80 percent of the payment basis de-
scribed in subparagraph (B).
(B) Payment basis
Subject to subparagraph (F)(i), the pay-
ment basis described in this subparagraph is
the lesser of—
(i) the actual charge for the item, or
(ii) the payment amount recognized
under paragraphs (2) through (7) of this
subsection for the item;
except that clause (i) shall not apply if the
covered item is furnished by a public home
health agency (or by another home health
agency which demonstrates to the satisfac-
tion of the Secretary that a significant por-
tion of its patients are low income) free of
charge or at nominal charges to the public.
(C) Exclusive payment rule
Subject to subparagraph (F)(ii), this sub-
section shall constitute the exclusive provi-
sion of this subchapter for payment for cov-
ered items under this part or under part A to
a home health agency.
(D) Reduction in fee schedules for certain
items
With respect to a seat-lift chair or trans-
cutaneous electrical nerve stimulator fur-
nished on or after April 1, 1990, the Secretary
shall reduce the payment amount applied
under subparagraph (B)(ii) for such an item
by 15 percent, and, in the case of a trans-
cutaneous electrical nerve stimulator fur-
nished on or after January 1, 1991, the Sec-
retary shall further reduce such payment
amount (as previously reduced) by 45 per-
cent.
(E) Clinical conditions for coverage
(i) In general
The Secretary shall establish standards
for clinical conditions for payment for cov-
ered items under this subsection.
(ii) Requirements
The standards established under clause
(i) shall include the specification of types
or classes of covered items that require, as
a condition of payment under this sub-
section, a face-to-face examination of the
individual by a physician (as defined in
section 1395x(r) of this title), a physician
assistant, nurse practitioner, or a clinical
nurse specialist (as those terms are defined
in section 1395x(aa)(5) of this title) and a
prescription for the item.
(iii) Priority of establishment of standards
In establishing the standards under this
subparagraph, the Secretary shall first es-
Cross-references
Connections may be documented source relationships, shared citations or nearby passages. Each explains its basis; a connection alone does not establish applicability to your situation.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Requirement of requests and certifications** Except as provided in subsections (d) and (g) and in [section 1395mm of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395mm&num=0&edition=prelim), payment for services furnished an individual may be made only to providers of services which are eligible therefor under [section 1395cc of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395cc&num=0&edition=prelim) and only if—
(1) written request, signed by such individual, except in cases in which the Secretary finds it impracticable for the individual to do so, is filed for such payment in such form, in such manner, and by such person or persons as the Secretary may by regulation prescribe, no later than the close of the period ending 1 calendar year after the date of service;
(2) a physician, or, in the case of services described in subparagraph (B), a physician, or a nurse practitioner, a clinical nurse specialist, or a physician assistant (as those terms are defined in [section 1395x(aa)(5) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395x/aa/5&num=0&edition=prelim)) who does not have a direct or indirect employment relationship with the facility but is working in collaboration with a physician,,11 So in original. or, in the case of services described in subparagraph (C), a physician, a nurse practitioner or clinical nurse specialist (as such terms are defined in [section 1395x(aa)(5) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395x/aa/5&num=0&edition=prelim)) who is working in accordance with State law, or a physician assistant (as defined in [section 1395x(aa)(5) of this title](https://usc
Source: Supplied U.S. Code snapshot — release unconfirmed · 42 U.S.C. § 1395j
Stored review status: release_metadata_unconfirmed. The source passage cites 42 U.S.C. § 1395j. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 3018
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395j
(I) a range of remedies to apply to hos-
pice programs under the conditions de-
scribed in paragraphs (1) through (4); and
(II) appropriate procedures for appeal-
ing determinations relating to the impo-
sition of such remedies.
Remedies developed pursuant to the pre-
ceding sentence shall include the remedies
specified in subparagraph (B).
(ii) Conditions of imposition of remedies
Not later than October 1, 2022, the Sec-
retary shall develop and implement spe-
cific procedures with respect to the condi-
tions under which each of the remedies de-
veloped under clause (i) is to be applied,
including the amount of any fines and the
severity of each of these remedies. Such
procedures shall be designed so as to mini-
mize the time between identification of de-
ficiencies and imposition of these remedies
and shall provide for the imposition of in-
crementally more severe fines for repeated
or uncorrected deficiencies.
(B) Specified remedies
The remedies specified in this subpara-
graph are the following:
(i) Civil money penalties in an amount
not to exceed $10,000 for each day of non-
compliance by a hospice program with the
requirements specified in section 1395x(dd)
of this title.
(ii) Suspension of all or part of the pay-
ments to which a hospice program would
otherwise be entitled under this sub-
chapter with respect to items and services
furnished by a hospice program on or after
the date on which the Secretary deter-
mines that remedies should be imposed
pursuant to paragraphs (1) and (2).
(iii) The appointment of temporary man-
agement to oversee the operation of the
hospice program and to protect and assure
the health and safety of the individuals
under the care of the program while im-
Source: Supplied 2024 U.S. Code historical extraction · 42 U.S.C. § 1395j
Stored review status: historical_2024_not_currentness_verified. The source passage cites 42 U.S.C. § 1395j. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) In general** The administration of this part shall be conducted through contracts with medicare administrative contractors under [section 1395kk–1 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395kk-1&num=0&edition=prelim).
**(b) Repealed. Pub. L. 108–173, title IX, § 911(b)(3), Dec. 8, 2003, 117 Stat. 2383**
**(c) Prompt payment of claims**
(1) Repealed. Pub. L. 108–173, title IX, § 911(b)(4)(A), Dec. 8, 2003, 117 Stat. 2383.
(2)
(A) Each contract under [section 1395kk–1 of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395kk-1&num=0&edition=prelim) that provides for making payments under this part shall provide that payment shall be issued, mailed, or otherwise transmitted with respect to not less than 95 percent of all claims submitted under this subchapter—
(i) which are clean claims, and
(ii) for which payment is not made on a periodic interim payment basis,
within the applicable number of calendar days after the date on which the claim is received.
(B) In this paragraph:
(i) The term “clean claim” means a claim that has no defect or impropriety (including any lack of any required substantiating documentation) or particular circumstance requiring special treatment that prevents timely payment from being made on the claim under this subchapter.
(ii) The term “applicable number of calendar days” means—
(I) with respect to claims received in the 12-month period beginning October 1, 1986, 30 calendar days,
(II) with respect to claims received in the 12-month period beginning October 1, 1987, 26 calendar days,
(III) with respect to claims received in the 12-month period beginning October 1, 1988, 25 calendar days,
(I
Source: Supplied U.S. Code snapshot — release unconfirmed · 42 U.S.C. § 1395l
Stored review status: release_metadata_unconfirmed. Same stored citation; legal effect and authority still require review.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Health care of the aged and disabled** The Secretary shall carry on studies and develop recommendations to be submitted from time to time to the Congress relating to health care of the aged and the disabled, including studies and recommendations concerning (1) the adequacy of existing personnel and facilities for health care for purposes of the programs under parts A and B of this subchapter; (2) methods for encouraging the further development of efficient and economical forms of health care which are a constructive alternative to inpatient hospital care; and (3) the effects of the deductibles and coinsurance provisions upon beneficiaries, persons who provide health services, and the financing of the program.
**(b) Operation and administration of insurance programs** The Secretary shall make a continuing study of the operation and administration of this subchapter (including a validation of the accreditation process of national accreditation bodies under [section 1395bb(a) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395bb/a&num=0&edition=prelim) 11 So in original. Probably should be followed by a comma. the operation and administration of health maintenance organizations authorized by section 226 of the Social Security Amendments of 1972 [[42 U.S.C. 1395mm](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395mm&num=0&edition=prelim)], the experiments and demonstration projects authorized by section 402 of the Social Security Amendments of 1967 [[42 U.S.C. 1395b–1](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395b-1&num=0&edition=prelim)] and the experiments and demonstration projects authorized by section 222(a) of the Social Security Amendments of 1972 [[4
Source: Supplied U.S. Code snapshot — release unconfirmed · 42 U.S.C. § 1395ww
Stored review status: release_metadata_unconfirmed. The source passage cites 42 U.S.C. § 1395ww. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 3807
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395ww
Editorial Notes
AMENDMENTS
1982—Subsec. (d). Pub. L. 97–248 redesignated second
subsec. (c), relating to hearing to review determina-
tion, as subsec. (d).
Statutory Notes and Related Subsidiaries
EFFECTIVE DATE OF 1982 AMENDMENT
Amendment by Pub. L. 97–248 effective as if originally
included as part of this section as this section was en-
acted by the Omnibus Budget Reconciliation Act of
1981, Pub. L. 97–35, see section 128(e)(2) of Pub. L. 97–248,
set out as a note under section 1395x of this title.
EFFECTIVE DATE
Pub. L. 97–35, title XXI, § 2101(c), Aug. 13, 1981, 95 Stat.
787, provided that: ‘‘The amendment made by sub-
section (a) [enacting this section and amending section
1396b of this title] shall apply only to services furnished
by a hospital during any accounting year beginning on
or after October 1, 1981.’’
PAYMENTS TO PROMOTE CLOSURE AND CONVERSION OF
UNDERUTILIZED HOSPITAL FACILITIES
Pub. L. 98–369, div. B, title III, § 2353, July 18, 1984, 98
Stat. 1099, directed Secretary of Health and Human
Services to carry out a study and report to Congress
prior to Mar. 31, 1985, on modifications required in this
section in order to conform the closure and conversion
program authorized in that section to the prospective
payment system under section 1395ww(d) of this title,
so as to provide assistance to hospitals which may have
particular problems in converting facilities (or parts
thereof) from acute care to less intensive care or in
closing facilities (or parts thereof), such report to in-
clude recommendations as to how, and whether, imple-
mentation of this section as modified may result in re-
ductions in total hospital inpatient costs and total ex-
penditures under this subchapt
Source: Supplied 2024 U.S. Code historical extraction · 42 U.S.C. § 1395ww
Stored review status: historical_2024_not_currentness_verified. The source passage cites 42 U.S.C. § 1395ww. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Establishment** The Secretary shall establish a manufacturer discount program (in this section referred to as the “program”). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c).
**(b) Terms of agreement**
(1) **In general**
(A) *Agreement* — An agreement under this section shall require the manufacturer to provide, in accordance with this section, discounted prices for applicable drugs of the manufacturer that are dispensed to applicable beneficiaries on or after January 1, 2025.
(B) *Clarification* — Nothing in this section shall be construed as affecting—
(i) the application of a coinsurance of 25 percent of the negotiated price, as applied under paragraph (2)(A) of [section 1395w–102(b) of this title](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title42-section1395w–102/b&num=0&edition=prelim), for costs described in such paragraph; or
(ii) the application of the copayment amount described in paragraph (4)(A) of such section, with respect to costs described in such paragraph.
(C) *Timing of agreement*
(i) *Special rule for 2025* — In order for an agreement with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2025, and ending on December 31, 2025, the manufacturer shall enter into such agreement not later than March 1, 2024.
(ii) *2026 and subsequent years* — In order for an agreement with a manufacturer to be in effect under this section with respect to plan year 2026 or a subsequent plan year, the manufacturer shall enter into such agreement not later than a calendar quarter or semi-annual deadline established by the Secretary.
(2)
Source: Supplied U.S. Code snapshot — release unconfirmed · 42 U.S.C. § 1395x
Stored review status: release_metadata_unconfirmed. The source passage cites 42 U.S.C. § 1395x. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 3523
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 1395x
Revenue Code of 1986 with respect to the man-
ufacturer.
(d) Definition of manufacturer
In this section, the term ‘‘manufacturer’’ has
the
meaning
given
such
term
in
section
1395w–114a(g)(5) of this title.
(Aug. 14, 1935, ch. 531, title XVIII, § 1860D–43, as
added Pub. L. 111–148, title III, § 3301(a), Mar. 23,
2010, 124 Stat. 461; amended Pub. L. 111–152, title
I, § 1101(b)(1), Mar. 30, 2010, 124 Stat. 1037; Pub. L.
117–169, title I, §§ 11001(b)(1)(G)(i), 11201(e)(7),
Aug. 16, 2022, 136 Stat. 1853, 1892.)
Editorial Notes
REFERENCES IN TEXT
Section 5000D(c)(1) of the Internal Revenue Code of
1986, referred to in subsec. (c)(2), is classified to section
5000D(c)(1) of Title 26, Internal Revenue Code.
AMENDMENTS
2022—Subsec. (a)(1). Pub. L. 117–169, § 11201(e)(7)(A)(i),
added par. (1) and struck out former par. (1) which read
as follows: ‘‘participate in the Medicare coverage gap
discount program under section 1395w–114a of this
title;’’.
Subsec. (a)(2). Pub. L. 117–169, § 11201(e)(7)(A)(ii),
added par. (2) and struck out former par. (2) which read
as follows: ‘‘have entered into and have in effect an
agreement described in subsection (b) of such section
with the Secretary; and’’.
Subsec. (a)(3). Pub. L. 117–169, § 11201(e)(7)(A)(iii), sub-
stituted ‘‘section 1395w–114a of this title’’ for ‘‘such sec-
tion’’.
Subsec. (b). Pub. L. 117–169, § 11201(e)(7)(B), added sub-
sec. (b) and struck out former subsec. (b). Prior to
amendment, text read as follows: ‘‘Subsection (a) shall
apply to covered part D drugs dispensed under this part
on or after January 1, 2011.’’
Subsec. (c). Pub. L. 117–169, § 11001(b)(1)(G)(i), des-
ignated existing provisions as par. (1) and inserted
heading, sub
Source: Supplied 2024 U.S. Code historical extraction · 42 U.S.C. § 1395x
Stored review status: historical_2024_not_currentness_verified. The source passage cites 42 U.S.C. § 1395x. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
**(a) Biologics license**
(1) No person shall introduce or deliver for introduction into interstate commerce any biological product unless—
(A) a biologics license under this subsection or subsection (k) is in effect for the biological product; and
(B) each package of the biological product is plainly marked with—
(i) the proper name of the biological product contained in the package;
(ii) the name, address, and applicable license number of the manufacturer of the biological product; and
(iii) the expiration date of the biological product.
(2)
(A) The Secretary shall establish, by regulation, requirements for the approval, suspension, and revocation of biologics licenses.
(B) *Pediatric studies.—* — A person that submits an application for a license under this paragraph shall submit to the Secretary as part of the application any assessments required under section 505B of the Federal Food, Drug, and Cosmetic Act [[21 U.S.C. 355c](https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title21-section355c&num=0&edition=prelim)].
(C) The Secretary shall approve a biologics license application—
(i) on the basis of a demonstration that—
(I) the biological product that is the subject of the application is safe, pure, and potent; and
(II) the facility in which the biological product is manufactured, processed, packed, or held meets standards designed to assure that the biological product continues to be safe, pure, and potent; and
(ii) if the applicant (or other appropriate person) consents to the inspection of the facility that is the subject of the application, in accordance with subsection (c).
(D) *Postmarket studies and clinical trials; labeling; risk evaluation and mitigation strategy.—* — A person that sub
Source: Supplied U.S. Code snapshot — release unconfirmed · 42 U.S.C. § 262
Stored review status: release_metadata_unconfirmed. The source passage cites 42 U.S.C. § 262. This identifies an authority to review, not proof of applicability.
Federal law — U.S. Code and appendices · legal_authorities
Page 456
TITLE 42—THE PUBLIC HEALTH AND WELFARE
§ 258a
§ 258a. Transferred
Editorial Notes
CODIFICATION
Section, act July 8, 1947, ch. 210, title II, § 201, 61 Stat.
269, which related to transfer of balances in working
capital fund, narcotic hospitals, to surplus fund, was
transferred and is set out as a note under section 290aa
of this title.
§§ 259 to 261a. Repealed. Pub. L. 106–310, div. B,
title XXXIV, § 3405(a), Oct. 17, 2000, 114 Stat.
1221, as amended by Pub. L. 114–198, title I,
§ 110(b), July 22, 2016, 130 Stat. 710
Section 259, acts July 1, 1944, ch. 373, title III, § 343, 58
Stat. 699; Pub. L. 91–513, title I, § 2(a)(2)(A), (3), (4), Oct.
27, 1970, 84 Stat. 1240; Pub. L. 92–293, § 3, May 11, 1972, 86
Stat. 136; Pub. L. 98–473, title II, § 232(b), Oct. 12, 1984, 98
Stat. 2031, related to convict addicts or other persons
with drug abuse or drug dependence problems.
Section 260, acts July 1, 1944, ch. 373, title III, § 344, 58
Stat. 701; June 25, 1948, ch. 654, § 5, 62 Stat. 1018; July 24,
1956, ch. 676, title III, § 302(b), 70 Stat. 622; Pub. L. 91–513,
title I, § 2(a)(2)(A), (3), (4), Oct. 27, 1970, 84 Stat. 1240, re-
lated to addicts and persons with drug abuse or drug
dependence problems.
Section 260a, act July 1, 1944, ch. 373, title III, § 345, as
added May 8, 1954, ch. 195, § 2, 68 Stat. 79; amended July
24, 1956, ch. 676, title III, § 302(c), 70 Stat. 622; Pub. L.
91–358, title I, § 155(c)(32), July 29, 1970, 84 Stat. 572, re-
lated to admission of addicts committed from District
of Columbia.
Section 261, acts July 1, 1944, ch. 373, title III, § 346,
formerly § 345, 58 Stat. 701; renumbered § 346, May 8,
1954, ch. 195, § 2, 68 Stat. 79; amended Pub. L. 91–513,
title I, § 2(a)(2)(A), (5), Oct. 27, 1970, 84 Stat. 1240, relate
Source: Supplied 2024 U.S. Code historical extraction · 42 U.S.C. § 262
Stored review status: historical_2024_not_currentness_verified. The source passage cites 42 U.S.C. § 262. This identifies an authority to review, not proof of applicability.