decisionhealth Newsletters, Answer Books - 2008 Issue 12 (December)
Physician_Fee_Schedule_Rules / 1998
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Article Overview
This article summarizes a major 1998 Medicare Part B final rule issued by HCFA/HHS. It covers broad physician fee schedule changes, including updates to relative value units, geographic practice cost indices, clinical psychologist payment policy, diagnostic test ordering and supervision, and Balanced Budget Act of 1997 implementation topics. It is relevant to physicians, billing and coding professionals, health plans, and others tracking Medicare payment and coverage policy.
Why This Topic Matters
The rule affects how Medicare Part B payment policy was updated for 1998 and how multiple physician-fee-schedule-related issues were operationalized. It also provides context for carriers, practitioners, and coders working with Medicare coverage, supervision, and fee schedule administration.
Article Sections
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Background
Introduces the physician fee schedule framework, statutory context, and prior rulemaking history. It also outlines how relative values and geographic adjustments fit into Medicare payment policy.
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Specific Proposals for Calendar Year 1998
Summarizes the main policy areas addressed for 1998, including practice expense methodology, geographic adjustments, clinical psychologist services, diagnostic tests, supplier payment issues, and selected screening and consultation topics.
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Implementation of the Balanced Budget Act of 1997
Describes how provisions from the Balanced Budget Act of 1997 are incorporated into the rule. The discussion includes several coverage and payment implementation areas affecting Medicare Part B.
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Refinement of Relative Value Units for Calendar Year 1998 and Responses to Public Comments on Interim Relative Value Units for 1997
Addresses review and refinement of relative value units, the handling of interim values, and responses to comments on prior year values. It also discusses development of work relative value units for new and revised codes.
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Provisions of the Final Rule
Presents the final regulatory actions adopted in the rule. This section serves as a consolidated statement of the rule’s operative policy changes.
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Collection of Information Requirements
Covers information collection considerations associated with the rule. It addresses administrative requirements tied to implementation.
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Waiver of Proposed Rulemaking and Response to Comments
Discusses procedural matters involving waiver of additional proposed rulemaking and summarizes the agency’s response to comments. It provides rulemaking context rather than clinical guidance.
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Regulatory Impact Analysis
Reviews the expected policy and budget impacts of the rule. This section includes regulatory analysis across multiple affected payment and coverage areas.
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Addenda A through G
Provides supporting addenda referenced throughout the rule, including relative value information, codes with interim values, geographic practice cost indices, and county locality listings.
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Acronyms
Lists abbreviations used in the rule and their corresponding terms. This section is reference material for navigating the document.
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Physician supervision of diagnostic procedures
Sets out the physician supervision framework for diagnostic services and explains how diagnostic procedures are grouped for payment administration. It includes a large reference listing of procedure codes and supervision indicators.
What You Will Learn
- How the 1998 Medicare physician fee schedule final rule is organized
- Which broad payment and coverage topics were revised for 1998
- How the rule addresses relative value units and geographic practice cost indices
- What administrative and regulatory sections support implementation of the rule
- How diagnostic procedure supervision is categorized in the rule’s reference material
Who Should Read This
- Medical coders
- Billing and reimbursement staff
- Physician practices
- Health plan policy staff
- Compliance professionals
- Revenue cycle teams
- Health care policy researchers
Codes Discussed
Code Ranges Discussed
Modifiers Discussed
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