November 17th, 2011

Representative Allyson Schwartz has drafted a proposal for the supercommittee in order to try and address the issue of the Medicare Sustainable Growth Rate (SGR). The SGR is a method used by CMS to control spending for physician services in the Medicare program.

On January 1, there is a scheduled 27.1 percent cut to physician payments, unless tackled by legislation before that date.  There has been previous legislation to amend the fee schedules (“doc fix”) in the past, but many including the American Medical Association want a permanent solution.

Schwartz agrees something must be done with the SGR if Congress is serious about addressing deficit issues. Under her plan, Schwartz proposes flat payments in 2012 and and annual increase of 0.5 for specialists from 2013-2016. For Generalists, they would see a 2.5 increase as an incentive to get  more physicians into primary care. She also proposes to slowly move away from the Fee For Service payment system and move to payments based on quality of care.

Many physician groups are supportive of the proposal. The American Medical Association does not think it goes far enough.

For more information, read today’s article on The Hill.