Both measures would replace the flawed Medicare physician payment formula with a value-based payment system beginning in 2017. The house bill includes a 0.5 percent annual payment update through 2017, while the senate proposal would freeze current payment levels until 2023. Additionally, the senate bill would extend the Medicare-Dependent Hospital Program and the low-volume hospital payment adjustment.
The approval of the two bills is the latest development in lawmakers’ quest to find a permanent solution to the SGR. Earlier this year, the Senate Finance and House Ways and Means committees issued a proposal that would repeal and replace the physician pay formula. The House Energy and Commerce Committee approved a similar proposal this past summer.
Every year since 2003, Congress has temporarily bypassed the SGR so physicians would not have to endure double-digit cuts to their Medicare pay. The latest proposed legislative patch would shield physicians from a scheduled 24 percent pay cut and give them a 0.5 percent payment update through March 2014.
More Articles on Medicare Physician Payments:
CBO: Medicare SGR Patch Would Cost $8.3B
CBO Reduces Expected Cost of SGR Repeal to $153.2B
CMS: Chronic Care Management, SGR Main Issues for Physician Pay in 2014
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