What important legislation primarily shaped the methods of reimbursement under Medicare?

The Balanced Budget Act of 1997 is crucial in shaping the reimbursement methodologies under Medicare. This legislation implemented significant changes aimed at controlling costs and influencing provider payments. One of its most notable impacts was the introduction of various payment systems, including prospective payment systems for skilled nursing facilities and outpatient hospital services.

Furthermore, the act established new payment models and encouraged the use of managed care through Medicare+Choice (now known as Medicare Advantage), which altered how Medicare reimburses providers and how beneficiaries access services. The provisions from this act have had lasting effects on Medicare’s structure and financial sustainability, directly informing how services are billed and reimbursed.

While other pieces of legislation mentioned have influenced healthcare and Medicare in various ways, the Balanced Budget Act specifically targeted payment methods and cost control, marking it as a critical piece of Medicare's reimbursement landscape.