Final answer:
The Medicare prospective payment system for ESRD was fully implemented on January 1, 2012. This payment reform was a move toward incentivizing quality care and cost management in treating end-stage renal disease.
Step-by-step explanation:
The Medicare prospective payment system for End-Stage Renal Disease (ESRD) was fully implemented on January 1, 2011. This system was part of a broader effort to reform payment methodologies and to incentivize quality care while managing costs for ESRD treatment. Prior to implementation, a transition period occurred, beginning on January 1, 2011, and being phased in over that year. The full rates took effect for all ESRD services starting on January 1, 2012. Thus, the correct answer to the question is B) January 1, 2012