SGR repeal advances in key congressional committees

Tuesday, May 21, 2013 10:41 AM

It appears that a repeal for Medicare’s sustainable growth rate formula may be closer than ever. On May 7, the congressional Committee on Ways and Means held a hearing on Medicare physician payment reform during which a bipartisan group of members expressed support for replacing the SGR this year.

The Committee on Ways and Means and the Committee on Energy and Commerce released draft concepts for replacing the SGR earlier this year, which are in line with AMA recommendations to begin with a period of stability and then move to a model that promotes quality, efficiency and value. AMA reports that the committees are making progress, now working with draft legislative language. They anticipate the drafts will be available later this summer.

On May 10, Senate Finance Committee Chairman Max Baucus and ranking member Orrin Hatch wrote to the health care provider community expressing that repeal of the SGR remains a top priority for the committee. While they expressed their support for the identification of alternative models for the future, they recognized that most physicians will continue to be paid under a fee-for-service arrangement for a period of time. Sens. Baucus and Hatch are soliciting recommendations that affect the FFS program. The request focuses on the validity of resource inputs in determining service prices, volume control, and how best to incentivize physicians to prepare to engage in alternative payment models.

AMA reports that they will participate in providing feedback to the committee to continue encouraging progress on eliminating the SGR. Click here to read the Baucus/Hatch letter.