[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3511 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 3511

 To amend title XVIII of the Social Security Act to continue the 2001 
  conversion factor under the Medicare physician fee schedule for the 
            first 6 months of 2002, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           December 18, 2001

Mr. Fletcher (for himself, Mr. Peterson of Minnesota, and Mrs. Johnson 
 of Connecticut) introduced the following bill; which was referred to 
the Committee on Energy and Commerce, and in addition to the Committee 
 on Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend title XVIII of the Social Security Act to continue the 2001 
  conversion factor under the Medicare physician fee schedule for the 
            first 6 months of 2002, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. CONTINUATION OF 2001 CONVERSION FACTOR UNDER THE MEDICARE 
              PHYSICIAN FEE SCHEDULE FOR FIRST 6 MONTHS OF 2002; MEDPAC 
              REPORT ON SUSTAINABLE GROWTH RATE.

    (a) In General.--Section 1848(d) of the Social Security Act (42 
U.S.C. 1395w-4(d)) is amended by adding at the end the following new 
paragraph:
            ``(5) Conversion factor for first 6 months of 2002.--
                    ``(A) In general.--Notwithstanding the update 
                otherwise determined under paragraph (4) for 2002, the 
                conversion factor established under this subsection for 
                services furnished during the first 6 months of 2002 
                shall be the conversion factor established under this 
                subsection for 2001.
                    ``(B) No effect for subsequent periods.--The 
                conversion factor under paragraph (1) and the update 
                adjustment factor under paragraph (4)(B) for services 
                furnished on or after July 1, 2002, shall be applied 
                and computed as if subparagraph (A) had not been in 
                effect.
                    ``(C) Conforming provisions to ensure no effect for 
                subsequent periods.--In carrying out subparagraph (B):
                            ``(i) No effect on target for allowed 
                        expenditures.--The allowed expenditures under 
                        paragraph (4)(C)(iii) for years after 2002 
                        shall be applied and computed as if 
                        subparagraph (A) had not been in effect.
                            ``(ii) Removal of additional expenditures 
                        from actual expenditures.--In applying 
                        paragraph (4)(B) for years beginning with 2003, 
                        the actual expenditures for the first 6 months 
                        of 2002 shall be the actual expenditures 
                        otherwise determined multiplied by the ratio of 
                        (I) the amount of the conversion factor that 
                        would have applied for the first 6 months of 
                        2002 under this subsection but for this 
                        paragraph, to (II) the amount of the conversion 
                        factor that is applied for the first 6 months 
                        of 2002 under this paragraph.
                            ``(iii) Not treated as change in law and 
                        regulation in sustainable growth rate 
                        determination.--The enactment of this paragraph 
                        shall not be treated as a change in law for 
                        purposes of applying subsection (f)(2)(D).''.
    (b) Conforming Amendments.--Section 1848(d) of such Act (42 U.S.C. 
1395w-4(d)) is amended--
            (1) in paragraph (1)(A), by inserting ``and subject to 
        paragraph (5)'' after ``with 2001'';
            (2) in paragraph (4)(A), by inserting ``(including 
        paragraph (5))'' after ``Unless otherwise provided by law'';
            (3) in paragraph (4)(B), by inserting ``and subparagraphs 
        (B) and (C) of paragraph (5)'' after ``subparagraph (D)'' in 
        the matter preceding clause (i); and
            (4) in paragraph (4)(C)(iii), by striking ``The allowed 
        expenditures'' and inserting ``Subject to paragraph (5)(C)(i), 
        the allowed expenditures''.
    (c) Continued Application of ``Pay-As-You-Go'' Rules.--Nothing in 
this section shall be construed as waiving the application of the pay-
as-you-go provisions of section 252 of the Balanced Budget and 
Emergency Deficit Control Act of 1985 (Public Law 99-177).
    (d) Study and Report by MedPAC on Replacing or Modifying the 
Sustainable Growth Rate As a Factor in Determining the Update for 
Payments Under the Medicare Physician Fee Schedule.--
            (1) Study.--The Medicare Payment Advisory Commission shall 
        conduct a study on replacing or modifying the sustainable 
        growth rate (as determined under subsection (f) of section 1848 
        of the Social Security Act (42 U.S.C. 1395w-4)) as a factor in 
        determining the update for payments under the medicare 
        physician fee schedule under such section such that the factor 
        used more fully accounts for changes in the unit costs of 
        providing physicians' services.
            (2) Report to congress.--Not later than March 1, 2002, the 
        Commission shall submit to Congress a report on the study 
        conducted under paragraph (1) together with such 
        recommendations for legislation and administrative action as 
        the Commission determines appropriate.
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