MedPAC Calls SGR Formula Flawed, Urges Replacement

Abstract

WASHINGTON – The Sustainable Growth Rate is “flawed in many ways,” according to the Medicare Payment Advisory Commission, which called for alternatives in its semiannual report to Congress issued June 15.Reform of the Sustainable Growth Rate formula (SGR) is essential to fixing the American health care system, MedPAC Chairman Glenn M. Hackbarth said in a statement.It is not the first time that the commissioners have expressed their concern about the SGR as a threat to both physicians and patients. One idea that has garnered strong support from the commission is to overhaul the payment system by rewarding primary care physicians and encouraging a medical home model of care.MedPAC executive director Mark Miller said that the SGR proposals are just a small facet of MedPAC's goal to move Medicare away from its fee-for-service payment system. MedPAC commissioners have been discussing how to move Medicare toward more global payment models.The report can be viewed online at http://medpac.gov/documents/Jun11_EntireReport.pdf. WASHINGTON – The Sustainable Growth Rate is “flawed in many ways,” according to the Medicare Payment Advisory Commission, which called for alternatives in its semiannual report to Congress issued June 15. Reform of the Sustainable Growth Rate formula (SGR) is essential to fixing the American health care system, MedPAC Chairman Glenn M. Hackbarth said in a statement. It is not the first time that the commissioners have expressed their concern about the SGR as a threat to both physicians and patients. One idea that has garnered strong support from the commission is to overhaul the payment system by rewarding primary care physicians and encouraging a medical home model of care. MedPAC executive director Mark Miller said that the SGR proposals are just a small facet of MedPAC's goal to move Medicare away from its fee-for-service payment system. MedPAC commissioners have been discussing how to move Medicare toward more global payment models. The report can be viewed online at http://medpac.gov/documents/Jun11_EntireReport.pdf.