II 109th CONGRESS 1st Session S. 1081 IN THE SENATE OF THE UNITED STATES May 19, 2005 Mr. Kyl (for himself, Ms. Stabenow, Mr. Corzine, and Mr. Talent) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XVIII of the Social Security Act to provide for a minimum update for physicians’ services for 2006 and 2007.

1.

Short title

This Act may be cited as the Preserving Patient Access to Physicians Act of 2005.

2.

Minimum update for physicians’ services for 2006 and 2007

(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 paragraphs: (6)

Update for 2006

The update to the single conversion factor established in paragraph (1)(C) for 2006 shall not be less than 2.7 percent. (7)

Update for 2007

(A)

In general

The update to the single conversion factor established in paragraph (1)(C) for 2007 shall not be less than the product of— (i)1 plus the Secretary’s estimate of the percentage change in the value of the input price index (as provided under subparagraph (B)(ii)) for 2007 (divided by 100); and (ii)1 minus the Secretary’s estimate of the productivity adjustment factor under subparagraph (C) for 2007. (B)

Input price index

(i)

Establishment

Taking into account the mix of goods and services included in computing the medicare economic index (referred to in the fourth sentence of section 1842(b)(3)), the Secretary shall establish an index that reflects the weighted-average input prices for physicians’ services for 2006. Such index shall only account for input prices and not changes in costs that may result from other factors (such as productivity). (ii)

Annual estimate of change in index

The Secretary shall estimate, before the beginning of 2007, the change in the value of the input price index under clause (i) from 2006 to 2007. (C)

Productivity adjustment factor

The Secretary shall estimate, and cause to be published in the Federal Register not later than November 1, 2006, a productivity adjustment factor for 2007 that reflects the Secretary’s estimate of growth in multifactor productivity in the national economy, taking into account growth in productivity attributable to both labor and nonlabor factors. Such adjustment may be based on a multi-year moving average of productivity (based on data published by the Bureau of Labor Statistics). . (b)

Conforming amendment

Section 1848(d)(4)(B) of the Social Security Act (42 U.S.C. 1395w–4(d)(4)(B)) is amended, in the matter preceding clause (i), by striking and paragraph (5) and inserting paragraphs (5), (6), and (7).