Medicare Claims Processing Manual (Pub. 100-04), Ch. 12 § 90.5
Billing and Payment in a Physician Scarcity Area (PSA)
90.5 - Billing and Payment in a Physician Scarcity Area (PSA)
(Rev. 1434; Issued: 02-05-08; Effective: 01-01-08; Implementation: 01-07-08)
Section 413a of the MMA requires that a 5 percent bonus payment be established for
physicians in designated physician scarcity areas for dates of service January 1, 2005,
through December 31, 2007. The Medicare, Medicaid, and State Children’s Health
Insurance Program (SCHIP) Extension Act of 2007 amended §1833(u)(1) of the Social
Security Act and has extended payment of that bonus through June 30, 2008. Physician
scarcity designations will be based on the lowest primary care and specialty care ratios of
Medicare beneficiaries to active physicians in every county. In addition, based on rural
census tracts of metropolitan statistical areas identified through the latest modification of
the Goldsmith Modification (i.e., Rural-Urban Commuting Area Codes), additional
physician scarcity areas will be identified based on the lowest primary care and specialty
care ratios of Medicare beneficiaries to active physicians in each identified rural census
area.