Deficit Reduction Act of 1984: provisions related to the Medicare and Medicaid programs.

This article summarizes the principal provisions of the Deficit Reduction Act of 1984 that relate to the Medicare and Medicaid programs. Among other things, the new legislation freezes customary and prevailing charges for physician services for 15 months at the June 1984 levels, reduces the allowable increase in hospital costs per case to one-fourth of 1 percentage point for fiscal years 1984-85, introduces new rules for the revaluation of a provider's assets, and establishes fee schedules for clinical diagnostic laboratory tests on a statewide, regional, or carrier-wide basis. It also normalizes the practice for trust fund transfers, waives the late enrollment surcharge and provides a special enrollment period for persons aged 65-69 who defer part B enrollment while participating in employer-sponsored group health insurance plans, makes changes in contracts for claims processing, and maintains the part B premium rate, through calendar year 1987, at the level necessary to produce income equal to one-fourth of program costs for aged enrollees. Under Medicaid, the coverage requirements for pregnant women and children have been modified, and applicants must now assign their rights to third-party payments to the State as a condition of eligibility.