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Letter to the Honorable Don Nickles [i] (February 2003)

handle is hein.congrec/cbo9257 and id is 1 raw text is: February 11, 2003 Honorable Don Nickles Chairman Committee on the Budget United States Senate Washington, DC 20510 Dear Mr. Chairman: The Congressional Budget Office has reviewed the following provision, which we understand may be included in the omnibus appropriations bill. This provision applies to the rates paid to physicians for services they provide to Medicare beneficiaries: Section 1848(i)(1)(C) of the Social Security Act (42 U.S.C. 1395w- 4(i)(1)(C)) is amended to read as follows: (C) the determination of conversion factors under subsection (d), including without limitation a prospective redetermination of the sustainable growth rates for any or all previous fiscal years,. Under current law, there can be no administrative or judicial review of actions taken by the Secretary of Health and Human Services to determine the conversion factors used to calculate the rates for Medicare payments to physicians. This provision would clarify that such determinations include any prospective redeterminations of the sustainable growth rates (SGRs) for any or all previous fiscal years-that is, that any such redeterminations of SGRs would not be subject to administrative or judicial reviews. CBO believes that this provision would not provide the Administration with any additional legal authority to modify the physician fee schedule, but there have been indications that the Administration would use this provision as the basis for raising the rates for Medicare payments to physicians. Based on recent statements by Administration officials, CBO now believes it is likely that the enactment of this provision would result in the correction of forecast

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