Will mandatory Medicare payment cuts (due to the SGR) get repealed?

March 2nd, 2014

Since 2003, healthcare providers have been dealing with the the short term patches to the Medicare payment system. After all this time, it now appears that Congress is making a move to address the ongoing issues with the Sustainable Growth Rate (SGR). This is the formula that has caused the payment problems with Medicare. Many professional organizations are endorsing the SGR Repeal and Medicare Provider Payment Modernization Act of 2014 (H.R. 4015, S. 2000) and encouraging providers to contact their congressional leaders and lend their support for this legislation. If you wish to join those lending their support CLICK HERE for a helpful tool to contact YOUR congressional leaders.

The SGR Repeal and Medicare Provider Payment Modernization Act of 2014 was developed jointly by the Senate Finance Committee, and the House Energy and Commerce and Ways and Means Committees. As of February 6, 2014, these bills have gone to committee which will consider it before possibly sending it on to the House or Senate. The most recent short-term "doc fix" is set to expire March 31, so time is short to avoid the scheduled 23.7% payment cut.

So just what is contained in this new legislation? The following are some key points:

Although most parties seem to agree that an SGR fix is necessary, there is concern over how to pay for the $120-$126 billion the legislation is estimated to cost over the next ten years. But these costs should be compared to what has already been spent on all of the temporary 'fixes' enacted over the previous ten years. According to an article in California Healthline, "Since 2003, Congress has spent nearly $150 billion on short-term patches to stave off Medicare payment cuts scheduled under the SGR formula." Therefore, it seems like we'll save money just by fixing the problem once and for all.



Will mandatory Medicare payment cuts (due to the SGR) get repealed?. (2014, March 2). Find-A-Code Articles. Retrieved from https://www.findacode.com/articles/will-mandatory-medicare-payment-cuts-due-to-the-sgr-get-repealed-25774.html

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