MEDICARE PAYMENT INCENTIVE FOR THE TRANSITION FROM TRADITIONAL X-RAY IMAGING TO DIGITAL RADIOGRAPHY AND OTHER MEDICARE IMAGING PAYMENT PROVISION.

SEC. 502. MEDICARE PAYMENT INCENTIVE FOR THE TRANSITION FROM TRADITIONAL X-RAY IMAGING TO DIGITAL RADIOGRAPHY AND OTHER MEDICARE IMAGING PAYMENT PROVISION.(a) Physician Fee Schedule.—(1) Payment incentive for transition.—(A) In general.—Section 1848(b) of the Social Security Act (42 U.S.C. 1395w–4(b)) is amended by adding at the end the following new paragraph:“(9) Special rule to incentivize transition from traditional x-ray imaging to digital radiography.—“(A) Limitation on payment for film x-ray imaging services.—In the case of an imaging service (including the imaging portion of a service) that is an X-ray taken using film and that is furnished during 2017 or a subsequent year, the payment amount for the technical component (including the technical component portion of a global service) of such service that would otherwise be determined under this section (without application of this paragraph and before application of any other adjustment under this section) for such year shall be reduced by 20 percent.“(B) Phased-in limitation on payment for computed radiography imaging services.—In the case of an imaging service (including the imaging portion of a service) that is an X-ray taken using computed radiography technology—“(i) in the case of such a service furnished during 2018, 2019, 2020, 2021, or 2022, the payment amount for the technical component (including the technical component portion of a global service) of such service that would otherwise be determined under this section (without application of this paragraph and before application of any other adjustment under this section) for such year shall be reduced by 7 percent; and“(ii) in the case of such a service furnished during 2023 or a subsequent year, the payment amount for the technical component (including the technical component portion of a global service) of such service that would otherwise be determined under this section 129 STAT. 3019 (without application of this paragraph and before application of any other adjustment under this section) for such year shall be reduced by 10 percent.“(C) Computed radiography technology defined.—For purposes of this paragraph, the term ‘computed radiography technology’ means cassette-based imaging which utilizes an imaging plate to create the image involved.“(D) Implementation.—In order to implement this paragraph, the Secretary shall adopt appropriate mechanisms which may include use of modifiers.”.(B) Exemption from budget neutrality.—Section 1848(c)(2)(B)(v) of the Social Security Act (42 U.S.C. 1395w–4(c)(2)(B)(v)) is amended by adding at the end the following new subclause:“(X) Reduced expenditures attributable to incentives to transition to digital radiography.—Effective for fee schedules established beginning with 2017, reduced expenditures attributable to subparagraph (A) of subsection (b)(9) and effective for fee schedules established beginning with 2018, reduced expenditures attributable to subparagraph (B) of such subsection.”.(2) Reduction of discount in payment for professional component of multiple imaging services.—(A) In general.—Section 1848(b) of the Social Security Act (42 U.S.C. 1395w–4(b)), as amended by paragraph (1), is amended by adding at the end the following new paragraph:“(10) Reduction of discount in payment for professional component of multiple imaging services.—In the case of the professional component of imaging services furnished on or after January 1, 2017, instead of the 25 percent reduction for multiple procedures specified in the final rule published by the Secretary in the Federal Register on November 28, 2011, as amended in the final rule published by the Secretary in the Federal Register on November 16, 2012, the reduction percentage shall be 5 percent.”.(B) Exemption from budget neutrality.—Section 1848(c)(2)(B)(v) of the Social Security Act (42 U.S.C. 1395w 4(c)(2)(B)(v)), as amended by paragraph (1), is amended by adding at the end by the following new subclause:“(XI) Discount in payment for professional component of imaging services.—Effective for fee schedules established beginning with 2017, reduced expenditures attributable to subsection (b)(10).”.(C) Conforming amendment.—Section 220(i) of the Protecting Access to Medicare Act of 2014 (42 U.S.C. 1395w–4 note) is repealed.(b) Payment Incentive for Transition Under Hospital Outpatient Prospective Payment System.—Section 1833(t)(16) of the Social Security Act (42 U.S.C. 1395(t)(16)) is amended by adding at the end the following new subparagraph:“(F) Payment incentive for the transition from traditional x-ray imaging to digital radiography.—Notwithstanding the previous provisions of this subsection:129 STAT. 3020“(i) Limitation on payment for film x-ray imaging services.—In the case of an imaging service that is an X-ray taken using film and that is furnished during 2017 or a subsequent year, the payment amount for such service (including the X-ray component of a packaged service) that would otherwise be determined under this section (without application of this paragraph and before application of any other adjustment under this subsection) for such year shall be reduced by 20 percent.“(ii) Phased-in limitation on payment for computed radiography imaging services.—In the case of an imaging service that is an X-ray taken using computed radiography technology (as defined in section 1848(b)(9)(C))—“(I) in the case of such a service furnished during 2018, 2019, 2020, 2021, or 2022, the payment amount for such service (including the X-ray component of a packaged service) that would otherwise be determined under this section (without application of this paragraph and before application of any other adjustment under this subsection) for such year shall be reduced by 7 percent; and“(II) in the case of such a service furnished during 2023 or a subsequent year, the payment amount for such service (including the X-ray component of a packaged service) that would otherwise be determined under this section (without application of this paragraph and before application of any other adjustment under this subsection) for such year shall be reduced by 10 percent.“(iii) Application without regard to budget neutrality.—The reductions made under this subparagraph—“(I) shall not be considered an adjustment under paragraph (2)(E); and“(II) shall not be implemented in a budget neutral manner.“(iv) Implementation.—In order to implement this subparagraph, the Secretary shall adopt appropriate mechanisms which may include use of modifiers.”.