Consequence of the Omnibus Budget Reconciliation Act of 1987: elimination of markup for certain diagnostic tests.
The Omnibus Budget Reconciliation Act of 1987 has significantly changed the rules governing the way in which charges must be made to Medicare concerning certain tests, including ultrasound, by a physician who provides these tests by means of an outside supplier. If the physician does not identify the supplier or indicate the amount charged by the supplier for the test, no payment is allowed, and the physician may not bill the beneficiary any amount for the test.
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