To amend title XVIII of the Social Security Act to eliminate the geographic physician work adjustment factor from the geographic indices used to adjust payments under the physician fee schedule.

February 14, 2002

Mr. FEINGOLD (for himself, Ms. COLLINS, Mr. KOHL, and Mr. DAYTON) introduced the following bill; which was read twice and referred to the Committee on Finance

To amend title XVIII of the Social Security Act to eliminate the geographic physician work adjustment factor from the geographic indices used to adjust payments under the physician fee schedule.

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

SECTION 1. SHORT TITLE.

This Act may be cited as the `Physician Wage Fairness Act of 2001'.

SEC. 2. ELIMINATION OF GEOGRAPHIC PHYSICIAN WORK ADJUSTMENT FACTOR FROM GEOGRAPHIC INDICES USED TO ADJUST PAYMENTS UNDER THE PHYSICIAN FEE SCHEDULE.

(a) FINDINGS- Congress finds the following:

(1) Variations in the geographic physician work adjustment factors under section 1848(e) of the Social Security Act (42 U.S.C. 1395w-4(e)) result in inequity between localities in payments under the medicare physician fee schedule.

(2) Beneficiaries under the medicare program that reside in areas where such adjustment factors are high have relatively more access to services that are paid based on such fee schedule.

(3) There are a number of studies indicating that the market for health care professionals has become nationalized and historically low labor costs in rural and small urban areas have disappeared.

(4) Elimination of the adjustment factors described in paragraph (1) would equalize the reimbursement rate for services reimbursed under the medicare physician fee schedule while remaining budget-neutral.

(b) ELIMINATION- Section 1848(e) of the Social Security Act (42 U.S.C. 1395w-4(e)) is amended--

(1) in paragraph (1)(A)(iii), by striking `an index' and inserting `for services provided before January 1, 2003, an index' after `Secretary'; and

(2) in paragraph (2), by inserting `, for services provided before January 1, 2003,' after `paragraph (4)), and'.

(c) BUDGET NEUTRALITY ADJUSTMENT FOR ELIMINATION OF GEOGRAPHIC PHYSICIAN WORK ADJUSTMENT FACTOR- Section 1848(d) of the Social Security Act (42 U.S.C. 1395w-4(d)) is amended--

(1) in paragraph (1)(A), by striking `The conversion' and inserting `Subject to paragraph (5), the conversion'; and

(2) by adding at the end the following new paragraph:

`(5) BUDGET NEUTRALITY ADJUSTMENT FOR ELIMINATION OF GEOGRAPHIC PHYSICIAN WORK ADJUSTMENT FACTOR- Before applying an update for a year under this subsection, the Secretary shall (if necessary) provide for an adjustment to the conversion factor for that year to ensure that the aggregate payments under this part in that year shall be equal to aggregate payments that would have been made under such part in that year if the amendments made by section 2(b) of the Physician Wage Fairness Act of 2001 had not been enacted.'.

END