SGR Repeal and Replacement Moves Forward

Thomas C. Barber, MD; Elizabeth Fassbender, and Catherine Boudreaux, MPP

Efforts to repeal and replace the sustainable growth rate (SGR) formula are moving closer to being realized. On Dec. 12, 2013, the Senate Finance and the House Ways and Means committees passed bipartisan bills to permanently repeal the SGR—the first step in replacing the outdated formula.

The measure passed by the Ways and Means committee will now need to be combined with one approved earlier by the House Energy and Commerce Committee before legislation goes to the full House and Senate for consideration. Separately, a 3-month SGR patch was also included in the bipartisan budget bill passed last month, which ensures doctors are not subject to cuts while Congress irons out the final details of the SGR’s replacement formula.

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