Administrations 1994 Health Budget Hearing Before the Committee On Finance U

Cover Administrations 1994 Health Budget Hearing Before the Committee On Finance U
Administrations 1994 Health Budget Hearing Before the Committee On Finance U
United States Congress Senate Committee On Fina
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HCFA's low CRNA conversion factors occurred for two reasons. First, there was a technical error in the fee schedule legislation. A two-step budget neutrality requirement forced HCFA to calculate the CRNA conversion factors using only the monies paid for CRNA services under Part A (which represented only 65% of the total CRNA costs) . Left out of the equation were the other 3 5% of costs of CRNAs who were physician-employed. Therefore, the interim CRNA fee schedule attempted to pay 100% of CRNAs... with only 65% of the money that had paid out for CRNA services in the previous year. Second, HCFA admittedly undervalued CRNA services by not using the most current and accurate AANA data. This undervaluing problem was eventually corrected in the CRNA final fee schedule published on July 31, 1992, and financial corrections were made by HCFA. However, the only way to remedy the technical error in OBRA86 regarding physician- employed CRNA costs, that resulted in inequities in the 1989 interim fee schedule, was for AANA to return to the legislative arena to secure fair Medicare CRNA conversion factors.

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