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GAO-14-600R 1 (2014-05-16)

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G      A             U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-325831


May 16, 2014

The Honorable Ron Wyden
Chairman
The Honorable Orrin G. Hatch
Ranking Member
Committee on Finance
United States Senate

The Honorable Fred Upton
Chairman
The Honorable Henry A. Waxman
Ranking Member
Committee on Energy and Commerce
House of Representatives

The Honorable Dave Camp
Chairman
The Honorable Sander Levin
Ranking Member
Committee on Ways and Means
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare & Medicaid Services:
        Medicare Program; Prospective Payment System for Federally Qualified Health
        Centers; Changes to Contracting Policies for Rural Health Clinics; and Changes to
        Clinical Laboratory Improvement Amendments of 1988 Enforcement Actions for
        Proficiency Testing Referral

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare &
Medicaid Services (CMS) entitled Medicare Program; Prospective Payment System for
Federally Qualified Health Centers; Changes to Contracting Policies for Rural Health Clinics;
and Changes to Clinical Laboratory Improvement Amendments of 1988 Enforcement Actions for
Proficiency Testing Referral (RIN: 0938-AR62). We received the rule on May 1, 2014. It was
published in the Federal Register as a final rule with comment period on May 2, 2014. 79 Fed.
Reg. 25,436.

The final rule with comment period implements methodology and payment rates for a
prospective payment system for federally qualified health center (FQHC) services under
Medicare Part B beginning on October 1, 2014, in compliance with the statutory requirement of
the Affordable Care Act. In addition, it establishes a policy which allows rural health clinics
(RHCs) to contract with nonphysician practitioners when statutory requirements for employment
of nurse practitioners and physician assistants are met, and makes other technical and


GAO-14-600R

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