PRACTICE EXPENSE RELATIVE VALUE UNITS.

SEC. 13513. PRACTICE EXPENSE RELATIVE VALUE UNITS. Section 1848(c)(2) (42 U.S.C. 1395w–4(c)(2)) is amended by adding at the end the following new subparagraph: “(E) Reduction in practice expense relative value units for certain services.— “(i) In general.— Subject to clause (ii), the Secretary shall reduce the practice expense relative value units applied to services described in clause (iii) furnished in— “(I) 1994, by 25 percent of the number by which the number of practice expense relative value units (determined for 1994 without regard to this subparagraph) exceeds the number of work relative value units determined for 1994, “(II) 1995, by an additional 25 percent of such excess, and “(III) 1996, by an additional 25 percent of such excess. “(ii) Floor on reductions.— The practice expense relative value units for a physician’s service shall not be reduced under this subparagraph to a number less than 128 percent of the number of work relative value units. “(iii) Services covered.— For purposes of clause (i), the services described in this clause are physicians’ 107 STAT. 582services that are not described in clause (iv) and for which— “(I) there are work relative value units, and “(II) the number of practice expense relative value units (determined for 1994) exceeds 128 percent of the number of work relative value units (determined for such year). “(iv) Excluded services.— For purposes of clause (iii), the services described in this clause are services which the Secretary determines at least 75 percent of which are provided under this title in an office setting.”.