GENERAL UPDATE IN PAYMENTS FOR PHYSICIANS’ SERVICES.

SEC. 4042. GENERAL UPDATE IN PAYMENTS FOR PHYSICIANS’ SERVICES. (a) Increase in MEI for 1988 and 1989.— Section 1842(b)(4) of the Social Security Act (42 U.S.C. 1395u(b)(4)) is amended by adding at the end the following new subparagraph: “(F) (i) For purposes of this part for physicians’ services furnished in 1987, the percentage increase in the MEI is 3.2 percent. “(ii) For purposes of this part for physicians’ services furnished in 1988, on or after April 1, the percentage increase in the MEI is— “(I) 3.6 percent for primary care services (as defined in subparagraph (E)(iii)), and “(II) 1 percent for other physicians’ services. “(iii) For purposes of this part for physicians’ services furnished in 1989, the percentage increase in the MEI is— “(I) 3.0 percent for primary care services; and “(II) 1 percent for other physician’s services.”. (b) Primary Care Services Defined.— Section 1842(b)(4)(E) of such Act (42 U.S.C. 1395u(b)(4)(E)) is amended by adding at the end thereof the following new clause: “(iii) The term ‘primary care services’ means physicians’ services which constitute office medical services, emergency department services, home medical services, skilled nursing, intermediate care, and long-term care medical services, or nursing home, boarding home, domiciliary, or custodial care medical services.”. (c) Participating Physician Differential.— Section 1842(b)(4)(A)(iv) of such Act (42 U.S.C. 1395u(b)(4)(A)(iv)) is amended— (1) by striking “96 percent” and inserting “applicable percent”, and (2) by adding at the end the following: “In the previous sentence, the term ‘applicable percent’ means for services furnished (I) on or after January 1, 1987, and before April 1, 1988, 96 percent, (II) on or after April 1, 1988, and before January 1, 1988, 95.5 percent, and (III) on or after January 1, 1989, 95 percent.”.