105(a) of the Medicare, Medicaid, and SCHIP Benefits
Improvement and Protection Act of 2000 (114 Stat.
2763A–471), as enacted into law by section 1(a)(6) of
Public Law 106–554, is amended—
(1) in subparagraph (U), by striking ‘‘and’’ at
the end;
(2) in subparagraph (V), by inserting ‘‘and’’ at
the end; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(W) pharmacist services (as defined in sub-
section (ww));’’.
(b) SERVICES DESCRIBED.—Section 1861 of the So-
cial Security Act (42 U.S.C. 1395x), as amended by sec-
tion 105(b) of the Medicare, Medicaid, and SCHIP Bene-
fits Improvement and Protection Act of 2000 (114 Stat.
2763A–471), as enacted into law by section 1(a)(6) of
Public Law 106–554, is amended by adding at the end
the following new subsection:
‘‘Pharmacist Services
‘‘(ww) The term ‘pharmacist services’ means such
drug therapy management services furnished by a phar-
macist, individually or on behalf of a pharmacy provider,
and such services and supplies furnished as an incident
to the pharmacist’s drug therapy management service,
which the pharmacist is legally authorized to perform (in
the State in which the individual performs such services)
in accordance with State law (or the State regulatory
mechanism provided by State law).’’.
(c) PAYMENT.—
(1) IN GENERAL.—Section 1833(a)(1) of the
Social Security Act (42 U.S.C. 1395l(a)(1)), as
amended by section 223(c) of the Medicare, Med-
icaid, and SCHIP Benefits Improvement and Pro-
tection Act of 2000 (114 Stat. 2763A–489), as en-
acted into law by section 1(a)(6) of Public Law 106–
554, is amended—
(A) by striking ‘‘and’’ before ‘‘(U)’’; and
(B) by inserting before the semicolon at
the end the following: ‘‘, and (V) with respect
to 
pharmacist 
services 
under 
section
1861(s)(2)(W), the amounts paid shall be 80
percent of the lesser of the actual charge or the
amount established under section 1834(n);’’.
(2) ESTABLISHMENT OF FEE SCHEDULE; PAY-
MENTS PRIOR TO IMPLEMENTATION OF FEE SCHED-
ULE.—Section 1834 of the Social Security Act (42
U.S.C. 1395m), as amended by section 223(b) of the
Medicare, Medicaid, and SCHIP Benefits Improve-
ment and Protection Act of 2000 (114 Stat. 2763A–
487), as enacted into law by section 1(a)(6) of Pub-
lic Law 106–554, is amended by adding at the end
the following new subsection:
‘‘(n) FEE SCHEDULES
FOR PHARMACIST SERV-
ICES.—
‘‘(1) 
DEVELOPMENT.—The 
Secretary 
shall
develop—
‘‘(A) a relative value scale to serve as the
basis for the payment of pharmacist services (as
defined in section 1861(ww)) under this part;
and
‘‘(B) using such scale and appropriate con-
version factors, fee schedules (on a regional,
statewide, locality, or carrier service area basis)
for payment for pharmacist services under this
part, to be implemented for such services fur-
nished during years beginning after the expira-
tion of the 3-year period which begins on the
date of enactment of this subsection.
‘‘(2) CONSIDERATIONS.—In developing the rel-
ative value scale and fee schedules under paragraph
(1), the Secretary shall consider differences in—
‘‘(A) the time required to perform types of
pharmacist services;
‘‘(B) the level of risk associated with the
use of particular out-patient prescription drugs
or groups of drugs; and
‘‘(C) the health status of individuals to
whom pharmacist services are provided.
‘‘(3) CONSULTATION.—In developing the fee
schedule for pharmacist services under this sub-
section, the Secretary shall consult with various na-
tional organizations representing pharmacists and
pharmacies and share with such organizations the
relevant data and data analysis being used in estab-
lishing such fee schedule, including data on vari-
ations in payments under this part by geographic
area and by service.
‘‘(4) PAYMENTS
PRIOR
TO
IMPLEMENTATION
OF FEE SCHEDULE.—In the case of a pharmacist
service (as defined in section 1861(ww)) that is fur-
nished before the implementation of the fee schedule
developed under paragraph (1)(B), the Secretary
shall pay an amount equal to 80 percent of the
amount that the Secretary would pay for such serv-
ice under the fee schedule established under section
1848 if the service were furnished by a physician or
as an incident to a physician’s service.’’.
(d) REPORT TO CONGRESS.—Not later than 3 years
after the date of enactment of this Act, the Secretary of
Health and Human Services shall submit to Congress a
report on the relative value scale and fee schedules devel-
oped under section 1834(n)(1) of the Social Security Act
(as added by subsection (c)(2)) for pharmacist services
furnished under part B of the medicare program under
title XVIII of the Social Security Act.
(e) EFFECTIVE DATE.—The amendments made by
this section shall apply to services furnished on or after
January 1, 2002.
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