The plan would clear the way for a new physician payment formula, according to the report. According to a document acquired by Politico, the cuts to entitlement programs are contingent on whether Republicans accept various new revenue proposals outlined in the offer. In return, physicians paid under Medicare would receive relief from the Sustainable Growth Rate, a formula that has created a backlog of cuts postponed by Congress year after year.
The Democrats plan to pay for the move away from SGR with a drawdown in military services in Iraq and Afghanistan. According to the report, a reduction in wartime activities could yield as much as $650 billion.
Democrats also plan to siphon about $50 billion away from Medicaid. The proposal would save $20 billion by increasing Medicaid’s “inflationary rebate” and provider taxes.
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