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Repeal of the Sustainable Growth Rate: an overview for surgeons
1Department of Surgery, Massachusetts General Hospital Division of Advocacy and Health Policy, American College of Surgeons, Boston, MA, USA.
Background:
The Medicare sustainable growth rate (SGR) formula is used to control Medicare spending on physician services. Under the current SGR formula, physicians face an almost 24% cut to the Medicare fee schedule on April 1, 2015. The US House Way & Means and Energy & Commerce Committees and the Senate Finance Committee released jointly proposed legislation to permanently repeal the SGR, and transition Medicare physician payment to a value-based payment method. This review summarizes the key components of the proposed legislation, and discusses some of the political challenges ahead.
Data Sources:
House Committees on Energy & Commerce and Ways & Means, and the Senate Committee on Finance staff write-ups.
Conclusions:
Physician Medicare reimbursement will move from a volume-based model to a value-based model over the next decade. Surgeons should remain engaged with the political process to ensure repeal of the SGR.
