Table 2Expenditure targets and performance adjustment factors that determined update factors between 1992 and 1998

Expenditure TargetsPerformance Adjustments
1992-1997 Volume Performance Standard: Performance Adjustment Factor
Increase in input prices (Medicare Economic Index)VPS from two years prior minus actual expenditure change
Part B enrollment
Changes in laws and regulations
Increases in volume and intensity
Minus a performance standard factor
1998- Sustainable Growth Rate Performance Adjustment Factor
Increases in input pricesThe sum of the following: the difference between target prior-year expenditures and prior-year allowed expenditures, and the difference (which may be positive or negative) between the amount of the allowed expenditures for physicians' services from April 1, 1996 through the end of the prior year, and the amount of the actual expenditures for such services during that period (Federal Register, November 1, 2001 Volume 66, Number 212).
Part B enrollment
Changes in laws and regulations
Growth in per capita GDP

Source:

Federal Register September 4, 1990 Volume 55, No. FR 36178.

Final Rule, Federal Register Vol.56, No. 227, Monday, November 25, 1991.

Final Notice, Federal Register, Vol. 57, No. 228. Wednesday, November 25, 1992.

Final Notice with Comment Period, Federal Register, Vol. 58, No. 230, Thursday, December 2, 1993.

Final Notice, Federal Register, Vol. 59, No. 235, Thursday, December 8, 1994.

Final Notice, Federal Register, Vol. 60, No. 236, Friday, December 8, 1995.

Final Notice, Federal Register, Vol. 61, No. 227, Friday, November 22, 1996.

Final Notice, Federal Register, Vol. 62, No. 211, Friday, October 31, 1997.

Notice with Comment Period, Federal Register, Vol. 63. No. 211, Monday, November 2, 1998.

From: 1, Introduction

Cover of Determinants of Increases in Medicare Expenditures for Physicians' Services
Determinants of Increases in Medicare Expenditures for Physicians' Services.
Technical Reviews, No. 7.
Buntin MB, Escarce J, Goldman D, et al.

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