Is a Permanent Fix Close?

Movement to replace SGR gaining momentum

Catherine Boudreaux

For more than a decade, physicians have been subject to annual threats of reductions in reimbursement—each larger than the previous year’s. The Sustainable Growth Rate (SGR), which debuted in 1997 as a Medicare cost containment strategy, has called for cuts in Medicare payments to physicians every year since 2002. Congress has repeatedly intervened to postpone the cuts, but each time it does so, the cost of “fixing” the formula increases.

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