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House passes bill to repeal and replace the sustainable growth rate formula
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Members of the U.S. House of Representatives voted 243 to 183 yesterday in favor of a bill that would permanently repeal and replace the Medicare physician payment formula.
“This vote is an important step toward ensuring a more stable and secure Medicare system for the patients it serves,” American Medical Association President J. James Rohack, MD, stated in a press release. “The American Medical Association thanks the members of Congress who put patients above politics and voted yes on H.R. 3961, the ‘Medicare Physician Payment Reform Act of 2009.’”
If enacted, the bill will create two categories for physician services; one for evaluation, management and preventive services and another for all other services. The new formula would provide an annual reimbursement reflecting the change in the gross domestic product (GDP) plus 2% for evaluation, management and preventative services; and the change in the GDP plus 1% for all other services in the second category.
Rep. Michael C. Burgess, MD, (R-Texas), was the sole Republican to vote for the bill. However, he noted that the bill was not the best way to fix physician reimbursement and cited the bill’s $210 billion cost as problematic.
“[I]t is very unlikely that today’s bill will ever become law, since the Senate has already soundly rejected a similar plan,” Burgess stated in a press release.
TRICARE is the health care program serving active duty military, National Guard and Reserve members, retirees, their families and survivors
The Senate must now approve the bill to save physicians from an impending 21.2% payment cut in 2010 and additional cuts in subsequent years. The AMA called on the Senate to act before the 21.2% cut takes place on January 1.
“Fixing the Medicare physician payment formula once and for all is an essential element of comprehensive health reform,” Rohack noted in the release. “Congress needs to fulfill its current commitments as it considers expanding its obligations. Physicians must be assured of stable payments so they can continue to care for seniors, baby boomers and military families.” - by Gina Brockenbrough