U.S. Lawmakers Make Progress on SGR Deal
Date: February 12, 2014
Last week, leadership of the U.S. House Ways and Means Committee, House Energy and Commerce Committee, and Senate Finance Committee introduced a bipartisan/bi-cameral bill to repeal and replace the Medicare Sustainable Growth Rate (SGR) formula.
While this framework agreement is encouraging, and represents significant progress on repealing and replacing the much maligned SGR formula, none of the sponsors of the legislation have formally provided any information on how they propose to pay for this fix. Although official estimates have not been finalized, preliminary estimates appear to put the cost of this proposal somewhere in the neighborhood of $120-$130 billion over 10 years. Congress has until March 31st to pass legislation to prevent a 24 percent reduction in Medicare physician fee-schedule payments from occurring.