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(1) ANNUAL INTERIM EVALUATIONS AND RE-
PORTS.—For each year of the expanded project, the 
Secretary shall provide for an evaluation of the 
project and shall submit to Congress, by a date spec-
ified by the Secretary, a report on the project and 
on the evaluation of the project for each such year. 
(2) FINAL
EVALUATION
AND
REPORT.—The 
Secretary shall provide for an evaluation of the ex-
panded project and shall submit to Congress, not 
later than 18 months after the date of completion of 
the project, a report on the project and on the eval-
uation of the project. 
SEC. 307. REPEAL OF PHYSICIAN ASSISTANCE AND QUAL-
ITY INITIATIVE FUND. 
Subsection (l) of section 1848 of the Social Security 
Act (42 U.S.C. 1395w–4) is repealed. 
SEC. 308. ADJUSTMENT TO MEDICARE PAYMENT LOCAL-
ITIES. 
Section 1848(e) of the Social Security Act (42 
U.S.C.1395w–4(e)) is amended by adding at the end the 
following new paragraph: 
‘‘(6) FEE SCHEDULE GEOGRAPHIC AREAS.— 
‘‘(A) IN GENERAL.— 
‘‘(i) REVISION.—Subject to clause (ii), 
for services furnished on or after January 
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1, 2008, the Secretary shall revise the fee 
schedule areas used for payment under 
this section applicable to the State of Cali-
fornia using the county-based geographic 
adjustment factor as specified in option 3 
(table 9) in the proposed rule for the 2008 
physician fee schedule published at 72 
Fed. Reg. 38,122 (July 12, 2007). 
‘‘(ii) TRANSITION.—For services fur-
nished during the period beginning Janu-
ary 1, 2008, and ending December 31, 
2010, after calculating the work, practice 
expense, and malpractice geographic indi-
ces described in clauses (i), (ii), and (iii) of 
paragraph (1)(A) that would otherwise 
apply, the Secretary shall increase any 
such geographic index for any county in 
California that is lower than the geo-
graphic index used for payment for serv-
ices under this section as of December 31, 
2007, in such county to such geographic 
index level. 
‘‘(B) SUBSEQUENT REVISIONS.— 
‘‘(i) TIMING.—Not later than January 
1, 2011, the Secretary shall review and 
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make revisions to fee schedule areas in all 
States for which more than one fee sched-
ule area is used for payment of services 
under this section. The Secretary may re-
vise fee schedule areas in States in which 
a single fee schedule area is used for pay-
ment for services under this section using 
the same methodology applied in the pre-
vious sentence. 
‘‘(ii) LINK WITH GEOGRAPHIC INDEX 
DATA REVISION.—The revision described in 
clause (i) shall be made effective concur-
rently with the application of the periodic 
review of geographic adjustment factors re-
quired under paragraph (1)(C) for 2011 
and subsequent periods.’’. 
SEC. 309. PAYMENT FOR IMAGING SERVICES. 
(a) PAYMENT UNDER PART B OF THE MEDICARE 
PROGRAM
FOR DIAGNOSTIC IMAGING SERVICES FUR-
NISHED IN FACILITIES CONDITIONED ON ACCREDITATION 
OF FACILITIES.— 
(1) SPECIAL PAYMENT RULE.— 
(A) IN GENERAL.—Section 1848(b)(4) of 
the Social Security Act (42 U.S.C. 1395w– 
4(b)(4)) is amended— 
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(i) in the heading, by striking ‘‘RULE’’ 
and inserting ‘‘RULES’’; 
(ii) in subparagraph (A), by striking 
‘‘IN
GENERAL’’ and inserting ‘‘LIMITA-
TION’’; and 
(iii) by adding at the end the fol-
lowing new subparagraph: 
‘‘(C) PAYMENT ONLY FOR SERVICES PRO-
VIDED IN ACCREDITED FACILITIES.— 
‘‘(i) IN GENERAL.—In the case of im-
aging services that are diagnostic imaging 
services described in clause (ii), the pay-
ment amount for the technical component 
and the professional component of the 
services established for a year under the 
fee schedule described in paragraph (1) 
shall each be zero, unless the services are 
furnished at a diagnostic imaging services 
facility that meets the certificate require-
ment described in section 354(b)(1) of the 
Public Health Service Act, as applied 
under subsection (m). The previous sen-
tence shall not apply with respect to the 
technical component if the imaging equip-
ment meets certification standards and the 
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