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<classification authority="sudocs">GA 1.13:GAO-06-62</classification>
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 <subject>Cost analysis</subject>
 <subject>Medical equipment</subject>
 <subject>Medicare</subject>
 <subject>Payments</subject>
 <subject>Prices and pricing</subject>
 <subject>Rates</subject>
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<titleInfo>
 <title>Medicare Durable Medical Equipment: Class III Devices Do Not Warrant a Distinct Annual Payment Update</title>
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<abstract>Medicare fee schedule payments for durable medical equipment
(DME) that the Food and Drug Administration (FDA) regulates as	 
class III devices, those that pose the greatest potential risk,  
increased by 215 percent from 2001 through 2004. From 2004	 
through 2006, and for 2008, the Medicare Prescription Drug,	 
Improvement, and Modernization Act of 2003 (MMA) provided for a  
payment update for class III DME equal to the increase in the	 
consumer price index for all urban consumers (CPI-U). For 2007,  
MMA requires the Secretary of Health and Human Services to	 
determine the payment update. MMA also requires that other DME	 
receive a 0 percent update from 2004 through 2008. MMA directed  
GAO to report on an appropriate payment update for 2007 and 2008 
for class III DME. In this report, GAO (1) examined whether class
III devices have unique premarketing costs and (2) determined how
the fee schedule rate-setting methodology accounts for the	 
premarketing costs of such devices.</abstract>
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<identifier type="preferred citation">GAO-06-62</identifier>
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 <searchTitle>GAO-06-62; Medicare Durable Medical Equipment: Class III Devices Do Not Warrant a Distinct Annual Payment Update;
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 <topic>Cost analysis</topic>
 <topic>Medical equipment</topic>
 <topic>Medicare</topic>
 <topic>Payments</topic>
 <topic>Prices and pricing</topic>
 <topic>Rates</topic>
</subject>
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  <title>United States Statutes at Large</title>
  <partNumber>Volume 117 Page 2066</partNumber>
  <partNumber>Volume 117 Page 2231</partNumber>
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 <identifier type="Statute citation">117 Stat. 2066</identifier>
 <identifier type="Statute citation">117 Stat. 2231</identifier>
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