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[DOCID: f:s1660is.txt]






107th CONGRESS
  1st Session
                                S. 1660

 To amend title XVIII of the Social Security Act to specify the update 
for payments under the medicare physician fee schedule for 2002 and to 
 direct the Medicare Payment Advisory Commission to conduct a study on 
    replacing the use of the sustainable growth rate as a factor in 
              determining such update in subsequent years.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            November 8, 2001

  Mr. Jeffords (for himself and Mr. Breaux) 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 specify the update 
for payments under the medicare physician fee schedule for 2002 and to 
 direct the Medicare Payment Advisory Commission to conduct a study on 
    replacing the use of the sustainable growth rate as a factor in 
              determining such update in subsequent years.

    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 Payment Fairness 
Act of 2001''.

SEC. 2. SPECIFICATION OF THE UPDATE FOR PAYMENTS UNDER THE MEDICARE 
              PHYSICIAN FEE SCHEDULE FOR 2002.

    (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 2002.--The conversion factor 
        established under this subsection for 2002 shall be 0.9 percent 
        less than the conversion factor established under this 
        subsection for 2001.''.
    (b) Conforming Amendments.--Section 1848(d)(4) of the Social 
Security Act (42 U.S.C. 1395w-4(d)(4)) is amended--
            (1) in the heading, by striking ``for years beginning with 
        2001'' and inserting ``for 2001, 2003, and subsequent years''; 
        and
            (2) in subparagraph (A), by striking ``a year beginning 
        with 2001'' and inserting ``2001, 2003, and each subsequent 
        year'' in the matter preceding clause (i).
    (c) Rule of Construction.--The Secretary of Health and Human 
Services shall treat the percentage change in the conversion factor for 
2002 under the physician fee schedule under section 1848(d) of the 
Social Security Act (42 U.S.C. 1395w-4(d)), made by the amendment under 
subsection (a), to be a change in law for purposes of determining the 
sustainable growth rate under section 1848(f)(2)(D) of such Act (42 
U.S.C. 1395w-4(f)(2)(D)).

SEC. 3. STUDY AND REPORT BY MEDPAC ON REPLACING THE USE OF THE 
              SUSTAINABLE GROWTH RATE AS A FACTOR IN DETERMINING THE 
              UPDATE FOR PAYMENTS UNDER THE MEDICARE PHYSICIAN FEE 
              SCHEDULE.

    (a) Study.--The Medicare Payment Advisory Commission shall conduct 
a study on replacing the use of 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 
with a factor that more fully accounts for changes in the unit costs of 
providing physicians' services.
    (b) Report to Congress.--Not later than March 1, 2002, the 
Commission shall submit to Congress a report on the study conducted 
under subsection (a) together with such recommendations for legislation 
and administrative action as the Commission determines appropriate.
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