Obama signs budget deal, stopping the 24 percent SGR cut

Tuesday, December 31, 2013 08:17 AM

President Obama signed the Pathway for SGR Reform Act of 2013 into law on Dec. 26, 2013, preventing a scheduled 24 percent payment reduction for physicians who treat Medicare patients from taking effect on Jan. 1, 2014. The new law provides for a 0.5 percent update for claims with dates of service from Jan. 1 through March 31, 2014. The update is intended to avoid disruptions to the Medicare program while Congress resumes its work on legislation to repeal the Sustainable Growth Rate in early 2014.

Earlier in December, the U.S. House Ways and Means Committee and the U.S. Senate Finance Committee passed legislative proposals to repeal the SGR and transition to a new Medicare physician payment system. This bipartisan accomplishment was a significant development, the American Medical Association said in an action alert.

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. They also allow for bonus payments for high-performing practices and lessen potential penalties.

For the latest tools and resources on the SGR and to contact your congressional representative and senators, go to the AMA’s www.FixMedicareNow.org website.

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.