DEPARTMENT OF HEALTH AND HUMAN SERVICES Centers for ...

CMS-1503-FC 736
may result in payment rates for a year being less than such payment rates for the
preceding year.
Section 3401(n) of ACA amends section 1834(h)(4)(A) of the Act to add a new
clause (xi) which provides that, for CY 2011 and each subsequent year, the fee schedule
update factor based on the CPI-U for the 12-month period ending with June of the
previous year is to be reduced by the MFP adjustment described in section
1886(b)(3)(B)(xi)(II) of the Act (as discussed previously). Section 3401(n) of the ACA
further amends section 1834(h)(4) of the Act to state that the application of subparagraph
(A)(xi) (that is, the reduction of the CPI-U percentage increase by the MFP adjustment)
may result in that percentage increase being less than zero for a year, and may result in
payment rates for a year being less than such payment rates for the preceding year.
Section 3401(o) of ACA amends section 1842(s)(1) of the Act to add a new
subparagraph (B) and clause (ii) which provides that, for CY 2011 and each subsequent
year, the fee schedule update factor based on the CPI-U for the 12-month period ending
with June of the previous year is to be reduced by the MFP adjustment described in
section 1886(b)(3)(B)(xi)(II) of the Act (as discussed above). Section 3401(o) of the
ACA further amends section 1842(s)(1) of the Act to state that the application of
subparagraph (B)(ii) (that is, the reduction of the CPI-U percentage increase by the MFP
adjustment) may result in that percentage increase being less than zero for a year, and
may result in payment rates for a year being less than such payment rates for the
preceding year.
The MFP adjustments to the CPI-U percentage increases used in calculating the
fee schedule adjustment factors for these DMEPOS items and services as mandated by