The Senate Finance and
The formula — adopted as part of a 1997 deficit reduction law — is set to reduce physician payment by nearly 25 percent Jan. 1. However, every year since 2003, Congress has temporarily bypassed the SGR so physicians would not have to endure double-digit cuts to their Medicare pay. Providers and policymakers have sought a permanent fix for the formula.
The new proposal would repeal the SGR and maintain physicians' pay at current levels while alternative payment models are developed. Starting in 2017, the plan involves an initiative under which physicians would receive additional pay based on their performance.
The policy also includes a process to ensure accurate payments, introduce physician-developed guidelines for inappropriate care and reward care coordination.
The House Energy and Commerce Committee approved a similar proposal this past summer. The House legislation would get rid of the SGR as of next year, and physicians would receive a 0.5 percent increase in Medicare reimbursements every year until 2018, after which they would receive payments based on quality reporting and outcomes. Starting in 2019, physicians could gain or lose 1 percent of their Medicare payments, depending on their quality scores.
Enacting the House bill would increase direct federal spending by about $175 billion from 2014 to 2023, according to the Congressional Budget Office.
More Articles on Medicare Physician Payments:
CBO: Bill Repealing Medicare SGR Would Cost $175B
AMA President: Permanent Medicare SGR Fix Could Come This Year
House Committee Approves Medicare Physician Pay Reform Bill