Permanent SGR Repeal, Physician Medicare Fees Overhauled
By - The Senate, in conjunction with the House of Representatives, has approved the Sustainable Growth Rate (SGR) repeal to replace it with the Medicare Access and CHIP Reauthorization Act of 2015 (H.R. 2).
The Senate overwhelmingly voted 92 to 8 in support of passing the bill mere hours before a deadline triggering heavy 21.2 percent Medicare reimbursement cuts was set to go into effect. The House of Representatives passed the bill on March 26, 2015 with a 392 to 37 vote.
Under this bill, the Medicare reimbursement schedule as it stands currently will be replaced with physician payment increases within the next five years. Additionally, currently implemented payment incentive programs will be merged into a Merit-Based Incentive Payment System with the establishment of other alternative payment models to follow.
The Congressional Budget Office stated enacting H.R. 2. increases both direct spending and revenues, resulting in a $141 billion increase in federal budget deficits.
Many organizations, including the Mayo Clinic, the American Medical Association (AMA), and the Medical Group Management Association (MGMA), are speaking in direct support of the legislation.
Says John Noseworthy, MD, Mayo Clinic President and CEO, “This ends 17 years of uncertainty for hospitals and physicians and moves Medicare towards paying for quality and efficiency. This is important for patients, taxpayers and long-term solvency of Medicare.”
Noseworthy remarks the value-based payment journey involves challenges.
“We believe the next step must be to develop performance measures that accurately differentiate levels of care and complexity of patients,” Noseworthy states, confirming Mayo has actively supported SGR’s repeal and replacement.
Says James L. Madera, MD, Chief Executive Officer and Executive Vice President of AMA, “Physicians across the country join the American Medical Association (AMA) in celebrating the U.S. Senate's vote tonight to pass Medicare delivery and payment reforms that will help our nation's seniors and improve the health of the nation.”
Madera applauds policymakers for eliminating the flawed SGR formula which will resultantly secure high-quality, cost-effective, easy accessible care for children, low income beneficiaries, and families via an extension of funds for the Children’s Health Insurance Program (CHIP) and community health centers.
“Passage of this historic legislation finally brings an end to an era of uncertainty for Medicare beneficiaries and their physicians—facilitating the implementation of innovative care models that will improve care quality and lower costs,” Madera states. “Patients will be able to get the care they need and deserve.”
Says Halee Fischer-Wright, MD, MMM, FAAP, MGMA President and Chief Executive Officer, "This is [an] historic day -- the dark cloud over physician group practices has been lifted. The Senate vote to permanently repeal the SGR returns stability to physicians and Medicare patients alike. MGMA congratulates Congress on this momentous, bipartisan achievement."
As high-quality and economically effective care for elderly beneficiaries is incentivized, the passing of such legislation means massive Medicare payment innovations for the future of the healthcare industry.
Following the Senate vote, the bill now moves forward to President Obama who indicated in a written statement that he would be “proud” to sign the bill into law.
