Status of the Deficit Reduction Act

March 3, 2006—After Congress passed the Deficit Reduction Act (DRA) of 2005, President George W. Bush signed the bill into law on February 8, 2006.The SVU, along with SDMS, has been monitoring the various activities surrounding this legislation. In addition, the SVU and SDMS Government Relations Committees, along with our legislative/regulatory consultant William Sarraille of Sidley Austin, have been working long hours formulating a strategy in order to try to avert or at least soften the planned vascular ultrasound reimbursement cuts before they go into effect on Jan. 1, 2007.

Reversing these payment cuts statutorily will be extremely difficult since Congress is not likely to reopen the DRA this year. However, there may be an opportunity to positively influence CMS and still achieve payment modifications for our members. Accordingly, we are making our best efforts to educate policymakers about the impact that these changes may have on patient access to care. With appropriate resources, we believe we can see progress this year and in 2007.

What does this mean for SVU members? This law really did three things of interest to SVU, our members and other vascular ultrasound professionals. First, it put into law the multiple procedure reduction rule in which the second imaging test performed on a “contiguous body part” would be paid at 50% of the first test performed. This affects nine (9) “families” of imaging services, including some ultrasound procedures, but does not currently include any non-invasive vascular codes. Second, it negated the planned 4.5% pay cut in the Physician Fee Schedule (“PFS”) that was to take effect. Thus, PFS payments will remain the same as in 2005. And third, it collapsed the PFS with the Hospital Outpatient Payment system for ALL imaging procedures. Unfortunately, this will mean a payment reduction of between 30-40 percent across the board for our family of codes.