INCREASE IN PHYSICIAN PAYMENT UPDATE; EXTENSION OF THE PHYSICIAN QUALITY REPORTING SYSTEM.

SEC. 101. INCREASE IN PHYSICIAN PAYMENT UPDATE; EXTENSION OF THE PHYSICIAN QUALITY REPORTING SYSTEM.(a) Increase in Physician Payment Update.—(1) In general.—Section 1848(d) of the Social Security Act (42 U.S.C. 1395w–4(d)) is amended—(A) in paragraph (4)(B), by striking “and paragraphs (5) and (6)” and inserting “and the succeeding paragraphs of this subsection”; and(B) by adding at the end the following new paragraph:“(8) Update for a portion of 2008.—“(A) In general.—Subject to paragraph (7)(B), in lieu of the update to the single conversion factor established in paragraph (1)(C) that would otherwise apply for 2008, for the period beginning on January 1, 2008, and ending on June 30, 2008, the update to the single conversion factor shall be 0.5 percent.“(B) No effect on computation of conversion factor for the remaining portion of 2008 and 2009.—The conversion factor under this subsection shall be computed under paragraph (1)(A) for the period beginning on July 1, 2008, and ending on December 31, 2008, and for 2009 and subsequent years as if subparagraph (A) had never applied.”.(2) Revision of the physician assistance and quality initiative fund.—(A) Revision.—Section 1848(l)(2) of the Social Security Act (42 U.S.C. 1395w–4(l)(2)) is amended—(i) by striking subparagraph (A) and inserting the following:“(A) Amount available.—“(i) In general.—Subject to clause (ii), there shall be available to the Fund the following amounts:“(I) For expenditures during 2008, an amount equal to $150,500,000.“(II) For expenditures during 2009, an amount equal to $24,500,000.“(III) For expenditures during 2013, an amount equal to $4,960,000,000.“(ii) Limitations on expenditures.—“(I) 2008.—The amount available for expenditures during 2008 shall be reduced as provided by subparagraph (A) of section 225(c)(1) and section 524 of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2008 (division G of the Consolidated Appropriations Act, 2008).“(II) 2009.—The amount available for expenditures during 2009 shall be reduced as provided by subparagraph (B) of such section 225(c)(1).“(III) 2013.—The amount available for expenditures during 2013 shall only be available 121 STAT. 2494 for an adjustment to the update of the conversion factor under subsection (d) for that year.”; and(ii) in subparagraph (B), by striking “entire amount specified in the first sentence of subparagraph (A)” and all that follows and inserting the following: “entire amount available for expenditures, after application of subparagraph (A)(ii), during—“(i) 2008 for payment with respect to physicians’ services furnished during 2008;“(ii) 2009 for payment with respect to physicians’ services furnished during 2009; and“(iii) 2013 for payment with respect to physicians’ services furnished during 2013.”.(B) Effective date.—(i) In general.—Subject to clause (ii), the amendments made by subparagraph (A) shall take effect on the date of the enactment of this Act.(ii) Special rule for coordination with consolidated appropriations act, 2008.—If the date of the enactment of the Consolidated Appropriations Act, 2008, occurs on or after the date described in clause (i), the amendments made by subparagraph (A) shall be deemed to be made on the day after the effective date of sections 225(c)(1) and 524 of the Departments of Labor, Health and Human Services, and Education, and Related Agencies Appropriations Act, 2008 (division G of the Consolidated Appropriations Act, 2008).(C) Transfer of funds to part b trust fund.—Amounts that would have been available to the Physician Assistance and Quality Initiative Fund under section 1848(l)(2) of the Social Security Act (42 U.S.C. 1395w–4(l)(2)) for payment with respect to physicians’ services furnished prior to January 1, 2013, but for the amendments made by subparagraph (A), shall be deposited into, and made available for expenditures from, the Federal Supplementary Medical Insurance Trust Fund under section 1841 of such Act (42 U.S.C. 1395t).(b) Extension of the Physician Quality Reporting System.—(1) System.—Section 1848(k)(2)(B) of the Social Security Act (42 U.S.C. 1395w–4(k)(2)(B)) is amended—(A) in the heading, by inserting “and 2009” after “2008”;(B) in clause (i), by inserting “and 2009” after “2008”; and(C) in each of clauses (ii) and (iii)—(i) by striking “, 2007” and inserting “of each of 2007 and 2008”; and(ii) by inserting “or 2009, as applicable” after “2008”.(2) Reporting.—Section 101(c) of division B of the Tax Relief and Health Care Act of 2006 (42 U.S.C. 1395w–4 note) is amended—(A) in the heading, by inserting “and 2008” after “2007”;(B) in paragraph (5), by adding at the end the following:121 STAT. 2495 “(F) Extension.—For 2008 and 2009, paragraph (3) shall not apply, and the Secretary shall establish alternative criteria for satisfactorily reporting under paragraph (2) and alternative reporting periods under paragraph (6)(C) for reporting groups of measures under paragraph (2)(B) of section 1848(k) of the Social Security Act (42 U.S.C. 1395w–4(k)) and for reporting using the method specified in paragraph (4) of such section.”; and(C) in paragraph (6), by striking subparagraph (C) and inserting the following new subparagraph:“(C) Reporting period.—The term ‘reporting period’ means—“(i) for 2007, the period beginning on July 1, 2007, and ending on December 31, 2007; and“(ii) for 2008, all of 2008.”.(c) Implementation.—For purposes of carrying out the provisions of, and amendments made by subsections (a) and (b), in addition to any amounts otherwise provided in this title, there are appropriated to the Centers for Medicare & Medicaid Services Program Management Account, out of any money in the Treasury not otherwise appropriated, $25,000,000 for the period of fiscal years 2008 and 2009.