I
107TH CONGRESS
1ST SESSION
H. R. 3318
To amend title XVIII of the Social Security Act to specify the update
for payments under the Medicare physician fee schedule for 2002.
IN THE HOUSE OF REPRESENTATIVES
NOVEMBER 16, 2001
Mrs. CAPPS (for herself, Mr. THOMPSON of California, Mr. MCHUGH, Mr.
HINCHEY, Mr. SCHROCK, Mr. WEINER, Mr. FORBES, Mr. FROST, Mr.
UDALL of New Mexico, Mr. MURTHA, and Mr. FILNER) introduced the
following bill; which was referred to the Committee on Energy and Com-
merce, and in addition to the Committee on Ways and Means, for a pe-
riod to be subsequently determined by the Speaker, in each case for con-
sideration of such provisions as fall within the jurisdiction of the com-
mittee concerned
A BILL
To amend title XVIII of the Social Security Act to specify
the update for payments under the Medicare physician
fee schedule for 2002.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Medicare Physician
Protection Act of 2001’’.
SEC. 2. SPECIFICATION OF THE UPDATE FOR PAYMENTS
UNDER 
THE 
MEDICARE 
PHYSICIAN 
FEE
SCHEDULE FOR 2002.
(a) IN GENERAL.—Section 1848(d) of the Social Se-
curity Act (42 U.S.C. 1395w–4(d)) is amended by adding
at the end the following new paragraph:
‘‘(5) CONVERSION FACTOR FOR 2002.—
‘‘(A) IN GENERAL.—The conversion factor
established under this subsection for 2002 shall
be equal to the conversion factor established
under this subsection for 2001.
‘‘(B) NO EFFECT FOR SUBSEQUENT PERI-
ODS.—The conversion factor under paragraph
(1) and the update adjustment factor under
paragraph (4)(B) for a year after 2002 shall be
applied and computed as if subparagraph (A)
had not been in effect.
‘‘(C) CONFORMING
PROVISIONS
TO
EN-
SURE
NO
EFFECT
FOR
SUBSEQUENT
PERI-
ODS.—In carrying out subparagraph (B):
‘‘(i) NO EFFECT ON TARGET FOR AL-
LOWED EXPENDITURES.—The allowed ex-
penditures under paragraph (4)(C)(iii) for
years after 2002 shall be applied and com-
puted as if subparagraph (A) had not been
in effect.
‘‘(ii) REMOVAL
OF
ADDITIONAL
EX-
PENDITURES
FROM
ACTUAL
EXPENDI-
TURES.—In applying paragraph (4)(B) for
years beginning with 2003, the actual ex-
penditures for 2002 shall be the actual ex-
penditures otherwise determined multiplied
by the ratio of (I) the amount of the con-
version factor that would have applied for
2002 under this subsection but for this
paragraph, to (II) the amount of the con-
version factor that is applied for 2002
under this paragraph.
‘‘(iii) NOT TREATED AS CHANGE IN
LAW
AND
REGULATION
IN
SUSTAINABLE
GROWTH RATE DETERMINATION.—The en-
actment of this paragraph shall not be
treated as a change in law for purposes of
applying subsection (f)(2)(D).’’.
(b) CONFORMING AMENDMENTS.—Section 1848(d)
of the such Act (42 U.S.C. 1395w–4(d)) is amended—
(1) in paragraph (1)(A), by inserting ‘‘and sub-
ject to paragraph (5)’’ after ‘‘with 2001’’;
(2) in paragraph (4)(A), by inserting ‘‘(includ-
ing paragraph (5))’’ after ‘‘Unless otherwise pro-
vided by law’’;
(3) in paragraph (4)(B), by inserting ‘‘and sub-
paragraphs (B) and (C) of paragraph (5)’’ after
‘‘subparagraph (D)’’ in the matter preceding clause
(i); and
(4) in paragraph (4)(C)(iii), by striking ‘‘The
allowed expenditures’’ and inserting ‘‘Subject to
paragraph (5)(C)(i), the allowed expenditures’’.
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