Medicare Sustainable Growth Rate Update

AMS recently joined the AMA and 109 other state and specialty medical societies in sending a message to Congress to repeal the Medicare Sustainable Growth Rate (SGR) payment formula and replace it with a system having certain core principles essential to creating a “high performing” Medicare program.

Medicare payments to physicians will be cut 27 percent on January 1 unless Congress intervenes, once again, to stop these SGR-mandated reductions. The current formula, with a constant threat of steep cuts and last minute Congressional action, creates an environment of uncertainty for physicians, their senior patients, and threatens access to care while failing to keep pace with the cost of care.

The October 15 letter to Congressional leadership stated that SGR elimination, “is only one-half of the equation” and that any new system should allow physicians to measure, demonstrate, and achieve rewards for progress on quality and costs while continuing their leading role in the delivery of health care.