Finally! Congress Repeals SGR Formula

Paves way for new payment model

Elizabeth Fassbender

After more than 10 years and 17 short-term patches, the Senate last month passed the Medicare and Children’s Health Insurance Program (CHIP) Reauthorization Act (HR 2), permanently repealing the flawed Sustainable Growth Rate (SGR) formula. The measure passed by an overwhelming margin (92 to 8), just hours before a 21 percent cut in physician reimbursements was scheduled to go into effect.

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