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36612 Federal Register / Vol. 72, No.

128 / Thursday, July 5, 2007 / Rules and Regulations

Order 13132 regarding federalism, and ■ 2. Section 100.2 is revised to read as Hospitals RY 2008: Annual Payment
has determined that it does not have follows: Rate Updates, and Policy Changes; and
‘‘federalism implications.’’ The Final Hospital Direct and Indirect Graduate
Rule would not ‘‘have substantial direct § 100.2 Average cost of a health insurance
policy.
Medical Education Policy Changes’’
effects on the States, or on the final rule that appeared in the May 11,
relationship between the national For purposes of determining the 2007 Federal Register.
government and the States, or on the amount of compensation under the
VICP, section 2115(a)(3)(B) of the PHS EFFECTIVE DATE: This notice is effective
distribution of power and
responsibilities among the various Act, 42 U.S.C. 300aa–15(a)(3)(B), on July 1, 2007.
levels of government.’’ provides that certain individuals are
FOR FURTHER INFORMATION CONTACT: Tzvi
entitled to receive an amount reflecting
Impact on Family Well-Being Hefter, (410) 786–4487 (General
lost earnings, less certain deductions.
information). Miechal Lefkowitz, (410)
This Final Rule will not adversely One of the deductions is the average
786–5316 (Graduate Medical Education
affect the following elements of family cost of a health insurance policy, as
payments). Renate Rockwell, (410) 786–
well-being: family safety, family determined by the Secretary. The
Secretary has determined that the 4645 (Graduate Medical Education
stability, marital commitment; parental
average cost of a health insurance policy payments).
rights in the education, nurture and
supervision of their children; family is $363.12 for 2006. This figure is SUPPLEMENTARY INFORMATION:
functioning, disposable income or calculated periodically (generally on an
poverty; or the behavior and personal annual basis) using the most recent I. Background
responsibility of youth, as determined Medical Expenditure Panel Survey-
Insurance Component (MEPS–IC) data In FR Doc. 07–2206 (72 FR 26870),
under section 654(c) of the Treasury and
available as the baseline for the average there was an erroneous statement of fact
General Government Appropriations
monthly cost of a health insurance relating to the GME policy adopted in
Act of 1999.
policy. This baseline is adjusted by the the final rule. In light of the error, this
Impact of the New Rule annual percentage increase/decrease notice serves to clarify the availability of
This Final Rule revises § 100.2 to obtained from the most recent annual certain salary proxy data that can be
incorporate a new methodology for Kaiser Family Foundation and Health used for purposes of the hospital direct
calculating the average cost of a health Research and Educational Trust (KFF/ and indirect graduate medical education
insurance policy. This new HRET) Employer Health Benefits survey policy adopted in the final rule.
methodology will result in a more or other authoritative source that may be II. Provisions of the Notice
accurate reflection of the actual average more accurate or appropriate in the
cost of a health insurance policy as future. The revised amount will be In the final rule that appeared in the
compared to the old methodology which effective upon its delivery by the May 11, 2007 Federal Register (72 FR
resulted in a number that was too high. Secretary to the United States Court of 26958), we responded erroneously to
Paperwork Reduction Act of 1980 Federal Claims, and the amount will be the following comment, ‘‘One
published as a notice in the Federal commenter stated that CMS should use
This Final Rule has no information Register periodically (generally on an average compensation figures for dental
collection requirements. annual basis). faculty based on specialty and regional
List of Subjects in 42 CFR Part 100 [FR Doc. E7–13039 Filed 7–3–07; 8:45 am] variation. The commenter stated that the
Biologics, Compensation, Health BILLING CODE 4165–15–P commenter would be happy to work
insurance, Immunizations. with CMS to develop compensation
figures for dental programs.’’ We
Dated: January 28, 2007.
DEPARTMENT OF HEALTH AND responded, ‘‘The AMGA [American
Elizabeth M. Duke, Medical Group Association] data does
HUMAN SERVICES
Administrator, HRSA. not apply to dental faculty, at this point
Approved: March 29, 2007. Centers for Medicare & Medicaid we are unaware of a comparable data
Michael O. Leavitt, Services source for dental faculty salaries. We
Secretary. will work with the commenter to
42 CFR Parts 412 and 413 determine whether we can develop
Editorial Note: This document was
received at the Office of the Federal Register [CMS–1529–N] proxy salary amounts for supervisory
on June 29, 2007. dentists.’’ After the final rule was
RIN 0938–AO30 issued, we were made aware that the
■For the reasons stated above, HHS
amends part 100 of 42 CFR as follows: AMGA data, in fact, do apply to dentists
Medicare Program; Hospital Direct and and podiatrists. Because AMGA data are
Indirect Graduate Medical Education available for the dental and podiatry
PART 100—VACCINE INJURY
Policy Changes; Notice specialties, the AMGA 2006 Medical
COMPENSATION
AGENCY: Centers for Medicare & Group Compensation and Financial
■ 1. The authority section for 42 CFR Survey data can be used as the salary
part 100 is revised to read as follows: Medicaid Services (CMS), HHS.
ACTION: Final rule; clarification. proxy for both dentistry and podiatry in
Authority: Secs. 312 and 313 of Pub. L. 99– accordance with the policies adopted in
660, 100 Stat. 3779–3782 (42 U.S.C. 300aa– SUMMARY: This notice clarifies the the final rule. We will also correct our
1 note); sec. 2114(c) and (e) of the PHS Act posting of 2006 AMGA salary data at the
availability of certain physician salary
(42 U.S.C. 300aa–14(c) and (e)); sec.
proxy data for purposes of the hospital following Web site address to include
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2115(a)(3)(B) of the PHS Act (42 U.S.C.


300aa–15(a)(3)(B)); sec. 904(b) of Pub. L. 105– direct and indirect graduate medical the median salary data for both dentistry
34, 111 Stat. 873; sec. 1503 of Pub. L. 105– education policy adopted in the and podiatry: http://www.cms.hhs.gov/
277, 112 Stat. 2681–741; and sec. 523(a) of ‘‘Medicare Program; Prospective AcuteInpatientPPS/Downloads/
Pub. L. 106–170, 113 Stat. 1927–1928. Payment System for Long-Term Care Specialty_Table_050107.pdf.

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Federal Register / Vol. 72, No. 128 / Thursday, July 5, 2007 / Rules and Regulations 36613

Authority neutrality, other adjustments, and revised fixed-loss amount, which is


(Catalog of Federal Domestic Assistance calculation of the payment rates). $2,216 lower than the incorrect fixed-
Program No. 93.773, Medicare—Hospital SUPPLEMENTARY INFORMATION: loss amount applied in the RY 2008
Insurance; and Program No. 93.774, LTCH PPS final rule, generally reduced
Medicare—Supplementary Medical
I. Background the estimated impact on estimated
Insurance Program). In FR Doc. 07–2206 (72 FR 26870), payments per discharge from RY 2007 to
Dated: June 29, 2007. there were technical errors stemming RY 2008 (column 9). In addition, we are
Leslie V. Norwalk, from a typographical error in the making conforming changes to the
computer programming of the payment preamble of the final rule (as indicated
Acting Administrator, Centers for Medicare
& Medicaid Services. simulation program that are identified in Section III. of this correction notice)
and corrected in the Correction of Errors that are necessary as a result of the
[FR Doc. 07–3260 Filed 6–29–07; 3:21 pm]
section below. The provisions in this correction of the fixed-loss amount and
BILLING CODE 4120–01–P
correction notice are effective as if they Tables 9 and 11.
had been included in the RY 2008 LTCH
PPS final rule. Accordingly, the III. Correction of Errors
DEPARTMENT OF HEALTH AND
HUMAN SERVICES corrections are effective July 1, 2007. In FR Doc. 07–2206 (72 FR 26870),
II. Summary of Errors make the following corrections:
Centers for Medicare & Medicaid 1. On page 26898,
Services In the RY 2008 LTCH PPS final rule, a. In the 2nd column, 1st full
we incorrectly calculated the HCO paragraph, lines 25 and 30, the figure
42 CFR Parts 412 and 413 fixed-loss amount. Specifically, we ‘‘$22,954’’ is corrected to read
discovered that there was a ‘‘$20,738’’.
[CMS–1529–CN] typographical error in one of the b. In the 3rd column, 2nd full
RIN 0938–AO30 numeric inputs used in the payment paragraph, lines 4 and 11, the figure
simulation program and this resulted in ‘‘$22,954’’ is corrected to read
Medicare Program; Prospective an understating of the nonlabor share of ‘‘$20,738’’.
Payment System for Long-Term Care payments to LTCHs. Since the nonlabor 2. On page 26899,
Hospitals RY 2008: Annual Payment related share is used in the calculation a. In the 1st column,
Rate Updates, and Policy Changes; of the fixed-loss amount, this error (1) In the 1st partial paragraph,
Corrections caused the fixed-loss amount to be (a) Line 26, the figure ‘‘3.8’’ is
inaccurate. We corrected the corrected to read ‘‘1.2’’.
AGENCY: Centers for Medicare & typographical error in the payment (b) Line 42, the figure ‘‘1.0’’ is
Medicaid Services (CMS), HHS. simulation program and computed the corrected to read ‘‘0.5’’.
ACTION: Correction of final rule. payment using the same payment (c) Lines 46 through 48, the sentence
methodology that was discussed and ‘‘We also project an estimated 2.5
SUMMARY: This document corrects
used in the final rule. Consequently, the percent decrease in estimated payments
technical errors in the ‘‘Medicare
corrected final fixed-loss amount for RY per discharge from RY 2007 to RY 2008
Program; Prospective Payment System
2008 is $20,738. This document due’’ is corrected to read, ‘‘We also
for Long-Term Care Hospitals RY 2008:
replaces all incorrect HCO fixed-loss project an estimated 0.4 percent
Annual Payment Rate Updates, and amounts references in the RY 2008 decrease in estimated payments per
Policy Changes; and Hospital Direct and LTCH PPS final rule with the corrected discharge from RY 2007 to RY 2008
Indirect Graduate Medical Education fixed-loss amount of $20,738. primarily due’’.
Policy Changes; Final Rule’’ (hereinafter Furthermore, the payment simulation (2) In the 1st full paragraph, line 2,
referred to as the RY 2008 LTCH PPS program was used in the analysis of the figure ‘‘$22,954’’ is corrected to read
final rule) that appeared in the May 11, payment changes for the impact section ‘‘$20,738’’.
2007 Federal Register. We are of the RY 2008 LTCH PPS final rule. b. In the 2nd column,
correcting the high cost outlier (HCO) Specifically, Tables 9 and 11 of the final (1) In the 1st partial paragraph, line
fixed-loss amount that is effective for rule address the projected impact of 14, the figure ‘‘10’’ is corrected to read
long-term care hospital (LTCH) payment rate policy changes by ‘‘8’’.
prospective payment system (PPS) comparing payments based on the (2) In the 1st partial paragraph, line
payments beginning on or after July 1, policies that were in effect for RY 2007 31, the figure ‘‘10’’ is corrected to read
2007 from $22,954 to $20,738. The to LTCH PPS payments based on ‘‘8.5’’.
incorrect fixed-loss amount was policies to be in effect for RY 2008, 3. On page 26900, in the 1st column,
determined due to a typographical error including the RY 2008 HCO fixed-loss in the 3rd full paragraph, in the 2nd line
in the computer programming. We are amount (72 FR 26870, 26977 through from the bottom, the figure ‘‘$22,954’’ is
also correcting figures in Table 9 and 26978, and 26985 through 26986). In corrected to read ‘‘$20,738’’.
Table 11 since the incorrect figures this correction notice, we are providing 4. On page 26977, in the 3rd column,
originally published originated from the the revised Tables 9 and 11 to reflect the in the 1st partial paragraph, lines 27 and
same typographical error. We are changes resulting from correcting the 28, the phrase ‘‘approximately $156
making additional conforming changes typographical error in the payment million (or about 3.8 percent).’’ is
to the preamble of the final rule which simulation program. We note that it was corrected to read, ‘‘approximately $50
were necessary as a result of the necessary to revise only two columns in million (or about 1.2 percent). In
correction of the fixed-loss amount and Table 11. Correcting the typographical addition, applying the case-mix
the figures in Tables 9 and 11. error for the nonlabor share generally adjustment (2.49 percent) to account for
EFFECTIVE DATE: July 1, 2007. reduced the estimated impact on the increase in payments in FY 2005,
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FOR FURTHER INFORMATION CONTACT: Tzvi estimated payments per discharge from the result is estimated to be an impact
Hefter, (410) 786–4487 (General RY 2007 to RY 2008 due to finalized of approximately $100 million.’’
information). Elizabeth Truong, (410) changes to the area wage adjustment 5. On pages 26977 through 26978,
786–6005 (Federal rate update, budget (column 7). In addition, applying the Table 9: Estimated Impact of the

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