As an April 1 deadline approaches, Congressional leaders say lawmakers are working on a permanent resolution to “the SGR problem,” according to a stament by a bipartisan Joint Committee on Friday.
The statement gives no specifics to a resolution nor says whether it expects to have one in time for April 1, when the most recent “doc fix” expires.
If Congress doesn’t act by April 1, physicians who accept Medicare will get a 21.2 percent pay cut as mandated by SGR, the sustainable growth rate formula for Medicare payment. Congress has averted these physician fee cuts 18 times since 2003 by overriding the SGR.
“Last year, the Ways and Means and Energy and Commerce Committees came together, on a bipartisan basis, to propose a permanent alternative to the broken SGR system,” the release stated. “We are now engaging in active discussions on a bipartisan basis – following up on the work done by leadership – to try to achieve an effective permanent resolution to the SGR problem, strengthen Medicare for our seniors, and extend the popular Children’s Health Insurance Program."
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Members releasing the joint statement include House Energy and Commerce Committee Chairman Fred Upton, R-MI, and ranking member Frank Pallone, D-N.J.; House Ways and Means Committee Chairman Paul Ryan, R-WI, and ranking member Sander Levin, D-MI.
The current SGR formula was intended to constrain Medicare Part B physician spending by adjusting the annual fees
In 2014, Congress agreed on legislation to replace SGR, but was unable to find a way to pay for it. The cost to taxpayers over the next 10 years is an estimated $174.5 billion.
House Energy and Commerce Committee hearings have identified a range of bipartisan plans.
Medicare already pays doctors 20 percent less on average than private market rates, according to Health Affairs. An additional 21 percent pay cut would be expected to curtail the number of doctors who accept Medicare.
Twitter: @SusanMorseHFN