ACloserLook Reimbursement Issues in Diagnostic Imaging

Significant Legislation for Imaging Procedures Signed Into Law

The Deficit Reduction Act (DRA) of 2005 was signed into law on February 9, 2006 by President Bush. This comprehensive legislation provides that payment rates for imaging services delivered in physicians' offices and freestanding facilities may not exceed payment rates for identical imaging delivered in hospital outpatient departments, effective for services furnished on or after January 1, 2007. The reduction will impact the payment for x-ray, CT, MRI, ultrasound, fluoroscopy and Nuclear Medicine imaging procedures. The DRA also provided for a zero percent reduction for services performed under the Medicare Physician Fee Schedule (MPFS), as opposed to the 4.4 percent reduction as was previously adopted per the final 2006 regulation for MPFS. This change is effective for all services on or after January 1, 2006. All claims that were processed with the 4.4 percent reduction can now be reprocessed with the new adjusted rate. Providers can file a claim requesting a redetermination of payment using the necessary form. Medicare contractors will make the necessary adjustments no later than July 1, 2006. The redetermination form must indicate the new billed amount for each code and can be accessed from the Centers for Medicare and Medicaid Services web site at:

http://www.cms.hhs.gov/MedlearnMattersArticles/ downloads/mm4313.pdf

Interested parties wishing to contact either US Congressional members or Professional Societies about the reductions for 2007 can view contact information on the following web site: http://www.gehealthcare.com/usen/community/ reimbursement/docs/proff_soc.pdf

Spring 2006