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SGR Replacement Bill Announced

February 06, 2014

A bill that would permanently replace the Sustainable Growth Formula used to calculate Medicare payments to physicians was announced jointly Thursday by Senate and House leaders.

A bipartisan, bicameral bill that would replace the Sustainable Growth Formula used to calculate how Medicare pays medical doctors, was introduced Thursday. The 'doc fix' bill, which would permanently repeal the SGR, was announced jointly by Senate and House leaders.

"This legislation today provides stability for physicians so they will no longer face the uncertainty of massive cuts, but also begins the process of improving how we pay for medical care to focus on positive results for [patients]." said Senate Finance Committee Ranking Member Orrin Hatch (R-UT).
The proposal would:

  • Repeal the SGR
  • Institute a 0.5 percent payment update for five years.
  • Improve the fee-for-service system by streamlining Medicare's existing web of quality programs into one value-based performance program.
  • Incentivize physicians to adopt alternative payment models.

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