Congress Examines MedPAC Recommendations on Future of Physician Payments
The House Ways and Means and Energy and Commerce Subcommittees on Health held hearings in their respective panels March 6 to examine the Medicare Payment Advisory Commission’s (MedPAC) report released that day titled “Assessing Alternatives to the Sustainable Growth Rate System.” The report was mandated as part of the Deficit Reduction Act of 2005.
The Sustainable Growth Rate (SGR) is a formula based on an expenditure target that is used to determine annual updates in physician payments. When the target is exceeded, payment per unit of service is decreased, which has led to several consecutive years of payment cuts, requiring Congressional intervention to avoid.
Democrats and Republicans alike on both committees have come to the realization that the SGR is a flawed system and an unsustainable way to reimburse physicians. While the MedPAC report detailed several options for reform, some lawmakers were disappointed with the lack of a clear policy recommendation.
The ACR and other specialties joined with the AMA in signing a letter to Congress in response to the hearings titled “Joint Recommendations to Congress on Eliminating the SGR And Supporting Efforts to Promote Health Care Quality and Appropriateness”. Recommendations can be viewed here. In addition, the ACR submitted a Statement for the Record urging an overhaul of the SGR and a focus on reimbursement policies that encourage quality.
MedPAC’s report to Congress can be viewed here.
For more information regarding ACR’s advocacy efforts, please contact Senior Director of Government Relations Josh Cooper at jcooper@acr.org, or Assistant Director of Congressional Relations Orrin Marcella at omarcella@acr.org.