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. 2014 Sep 4;9(12):2195–2202. doi: 10.2215/CJN.03830414

Table 2.

Key legislation affecting payment for the US ESRD Program

Year Public Law Title Major Provisions
1972 92–603 Social Security Act of 1972 Medicare coverage of patients with ESRD <65 yr of age after a 3-mo waiting period
1978 95–292 ESRD Program Amendments of 1978 Elimination of the 3-mo waiting period for home dialysis or transplantation
1981 97–35 Omnibus Reconciliation Act Establishment of single prospective rate to cover all services and supplies for dialysis (composite rate); excluded certain laboratory tests and drugs that were separately billable; MSP for 12 mo after the patient qualifies for Medicare if that patient has employer group health insurance
1986 99–509 Omnibus Reconciliation Act Mandatory $0.50 withhold per treatment to fund ESRD Networks
1991 MSP increased to 18 mo
2003 108–173 MMA Statutorily mandated increases in composite rate to adjust for inflation; separately billable drugs reimbursed at average sales price plus 6% (rather than average wholesale cost); composite rate add on to replace drug margins; MSP increased to 30 mo; case-mix adjustment for age and body size
2008 110–275 MIPPA Established bundled reimbursement to include composite rate items and services, injectable drugs and their oral equivalents, and laboratory tests to begin in 2011; oral-only ESRD drugs to be included in the bundle in 2014; new case-mix adjusters; elimination of higher payment for hospital-based providers; Quality Incentive Program to begin in 2012
2012 112–240 ATRA Mandated rebasing of dialysis reimbursement to reflect lower use of drugs; oral-only ESRD drugs to be included in the bundle in 2016
2014 113–93 PAMA Spreads out and reduces rebasing reimbursement cut; oral-only drugs to be included in the bundle in 2024

MMA, Medicare Modernization Act; MIPPA, Medicare Improvements for Patients and Providers Act; American Taxpayer Relief Act; PAMA, Protecting Access to Medicare Act of 2014; MSP, Medicare to be secondary payer.