Directs the Secretary to establish a process that provides for the assignment of inpatient hospital codes for new medical services and related technologies as of April 1 of each year.
Requires the Secretary to establish a process for the assignment of Health Care Financing Administration Common Procedure Coding System (HCPCS) Level II codes each calendar quarter for new medical services and technologies.
Amends SSA title XI to provide that, if the National Committee on Vital and Health Statistics has not made a recommendation to the Secretary before April 1, 2003, with respect to the adoption of the International Classification of Diseases, 10th Revision, Procedure Coding System (ICD-10-PCS) as a standard for the reporting of inpatient hospital services, the Secretary may adopt ICD-10-PCS as such a standard without receiving such a recommendation.
Revises requirements for the use of internal and external data for annual adjustments to the inpatient hospital prospective payment system (PPS) and outpatient hospital PPS.
Provides for limitation on use of foreign payer data in determining Medicare payment amounts.
Revises requirements for the recognition of the costs of new medical services and technologies under the inpatient hospital PPS.
Establishes requirements for any agreement or contract to perform the function of making local coverage determinations.
Modifies requirements for the use of carriers for administration of benefits with respect to national inherent reasonableness determinations.