To amend title XVIII of the Social Security Act to specify the update for payments under the Medicare physician fee schedule for 2003.

January 7, 2003

Mrs. CAPPS (for herself, Mr. LARSEN of Washington, Mr. TAYLOR of Mississippi, Mrs. DAVIS of California, Ms. WOOLSEY, Ms. LOFGREN, Mr. ROSS, Mr. MARKEY, Mr. BOUCHER, Mr. GREEN of Texas, Mr. BRADY of Pennsylvania, Mr. MCNULTY, Ms. CARSON of Indiana, Ms. SLAUGHTER, Mr. REYES, Mr. FRANK of Massachusetts, Mr. MORAN of Virginia, Mr. FROST, Mr. ISRAEL, Mr. DOGGETT, Mr. HINCHEY, Mr. DAVIS of Florida, Mr. RODRIGUEZ, Mr. NADLER, and Mr. WYNN) 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

To amend title XVIII of the Social Security Act to specify the update for payments under the Medicare physician fee schedule for 2003.

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 `Medicare Physician Protection Act of 2003'.

SEC. 2. SPECIFICATION OF THE UPDATE FOR PAYMENTS UNDER THE MEDICARE PHYSICIAN FEE SCHEDULE FOR 2003.

(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 2003-

`(A) IN GENERAL- The conversion factor established under this subsection for 2003 shall be equal to the conversion factor established under this subsection for 2002.

`(B) NO EFFECT FOR SUBSEQUENT PERIODS- The conversion factor under paragraph (1) and the update adjustment factor under paragraph (4)(B) for a year after 2003 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 2003 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 2004, the actual expenditures for 2003 shall be the actual expenditures otherwise determined multiplied by the ratio of (I) the amount of the conversion factor that would have applied for 2003 under this subsection but for this paragraph, to (II) the amount of the conversion factor that is applied for 2003 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 the 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'.

END