Short-Term SGR Fix Passed

Abstract

The House of Representatives voted Nov. 29 to approve a 1-month extension of the current Medicare physician fee schedule, following the Senate and avoiding until Jan. 1 the 23% statutory reduction that was due Dec. 1. However, unless Congress and President Obama take additional action before the Christmas recess, physicians face a 25% cut in fees under Medicare's Sustainable Growth Rate (SGR) formula. The Physician Payment and Therapy Relief Act of 2010 was introduced in the Senate by Finance Committee Chairman Max Baucus (D-Mont.) and ranking minority member Chuck Grassley (R-Iowa). The relief legislation was originally introduced in the House by Rep. Sander Levin (D-Mich.). The estimated cost for the 1-month extension is $1 billion. The Senate legislation pays for that by using savings from a new Centers for Medicare & Medicaid Services policy that reduces Medicare payments for multiple therapies provided to a patient in 1 day. With dozens of other medical organizations, AMDA has urged Congress to make a 13-month physician pay fix a top priority during its lame-duck session. In a letter, the group told Congress, “A statutory update that lasts at least through the end of 2011 will provide time for Congress and the physician community to develop a long term solution to ensure that seniors can count on finding physicians to care for them, and that physicians will not view Medicare as a threat to the viability of their practice.” Alicia Ault is an associate editor with Elsevier Global Medical News.