SGR repeal bill advances in federal committee

Saturday, July 27, 2013 02:53 PM

On July 23, the Health Subcommittee of the U.S. House Energy and Commerce Committee approved a bipartisan draft bill that would repeal the sustainable growth rate formula (SGR) and move Medicare to a payment system that rewards quality and reduces costs. The draft bill was released last week and the subcommittee adopted an amendment during the mark-up to make technical changes to the legislation, but no significant changes were made in the policies set forth in the original bill.

The full Energy and Commerce Committee is expected to vote on the legislation before the five-week congressional recess that is scheduled to begin on Aug. 1.

Ardis Hoven, MD, president of the American Medical Association, praised congressional leaders for their work to fix the Medicare physician payment system this year but also said that there is work to be done to ensure a strong future for Medicare.

“When crafting new payment systems, lawmakers must ensure that funding for Medicare’s payments to physicians is sufficient to allow for sustainable practice environments that give physicians the ability to invest in new ways of improving care for patients.

“This includes maintaining budget neutrality related to adjustments to correct misvalued codes as part of that ongoing process. Changes to quality reporting requirements should build on the existing system rather than attempting to implement a new regimen that adds administrative burdens and could distract from more effective efforts to improve patient care.”

The AMA has followed this bill closely as it has developed. Click here to read a draft of the subcommittee proposal. Click here to read the AMA’s comments on the bill.