Congressional committees pass SGR repeal, House passes three-month patch

Tuesday, December 17, 2013 03:22 PM

Congressional lawmakers are closer than ever to repealing the broken Medicare Sustainable Growth Rate (SGR). Landmark bipartisan, bicameral legislation was considered and passed out of committee on Thursday, Dec. 12, by the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee.

Both committees’ versions of the proposal would consolidate and restructure existing quality improvement incentive programs—including meaningful use, the Physician Quality Reporting System and the value-based modifier—to reduce the administrative and financial burden on physicians, the AMA reports. They also allow for bonus payments for high-performing practices and lessen potential penalties.

The House version also provides a 0.5 percent update to payments under the Medicare physician fee schedule for three years.

The AMA has announced its support for the current proposal, calling it “a significant improvement over current law” that will “result in a stronger Medicare program.” And while Congress will not pass the legislation before they adjourn for the holiday recess, an amendment in the budget agreement includes a temporary three-month “payment bridge” for the SGR and related extenders, averting the nearly 24 percent cut in Medicare payments and giving lawmakers more time to work out the details of a permanent fix.

The House passed the three-month payment bridge that includes a 0.5 percent update and the Senate is expected to vote on the measure before recessing at the end of the week.

The biggest obstacle to the full SGR repeal is finding and agreeing upon budgetary offsets. The Congressional Budget Office has re-scored the cost of repealing the SGR over the next 10 years from $150 billion to $116.5 billion, which AMA President Ardis Hoven, MD, has said presents an opportunity for repeal that will not likely occur again.

Make your voice heard; contact your congressional representative and senators to urge them to keep up the momentum. Go to the AMA’s Fix Medicare Now campaign website for e-mail templates, talking points and more.

Note: The deadline to modify your participation status with Medicare has been extended to Jan. 31, 2014. Click here to access the AMA’s Medicare Participation Kit to understand your options.