Congress acts to delay 2014 Medicare Physician fee cuts of over 20% | News | Patient Account Services

Congress acts to delay 2014 Medicare Physician fee cuts of over 20%

December 19, 2013

 

 

December 19, 2013


 December 19, 2013

To:      HBMA Membership
From: GR Committee
Re:      SGR - Short-term fix approved, permanent Repeal and Replace initiative moves out of Committee
 
On Thursday, December 12, the Senate Finance Committee and House Ways and Means Committee each approved their respective versions of legislation to repeal and replace the SGR formula.  While many of the substantive provisions of the respective bills were the same, there were some significant differences in the two bills.
 
Current law projects cuts in the Medicare provider payments of approximately $116 billion over the next 10 years based upon the existing SGR formula.  Therefore, repealing the SGR formula would add approximately $116 Billion in additional outlays from the Medicare Trust Fund over the next 10 years. 
 
Neither the House nor Senate Committees disclosed how they intend to "pay for" this SGR fix legislation.  Some combination of Medicare cuts elsewhere in the program or revenue increases will have to be adopted in conjunction with the "fix" in order to account for the additional spending.
 
Because it will take time to negotiate a final fix, the House and Senate have both approved legislation adopting a 3-month SGR patch.  This patch will prevent the SGR related cut in provider payments from occurring on January 1, 2014 and it would also provide a .5% increase in the Conversion Factor.  The President has said he will sign this legislation.
 Click here to view a side-by-side of the major provisions of the two Committee-passed SGR Repeal/Replace bills.
 
Because of the unique process used by each of the Committees to consider legislation in Committee, it is impossible to do an exact comparison of the respective bills.   


Copyright 2013 HBMA. All Rights Reserved.

 

 


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