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House panel approves revamp of Medicare reimbursement formula
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Bipartisan legislation designed to fix the existing Medicare formula for physician payments has been approved by the House Energy and Commerce Committee by a vote of 51-0, a move supported by the American Optometric Association.
The measure, HR 2810, would replace Medicare’s sustainable growth rate (SGR) with a more consistent and sustainable system for physician reimbursement, according to a committee announcement.
The bill “remedies this ailing physician payment system while encouraging the highest quality of care for America’s seniors,” Committee Chairman Fred Upton, (R-Mich.), said.
The measure provides a “statutory update” to physicians of 0.5% annually from 2014 through 2018. That would continue for providers in 2019 and beyond, with those practicing in fee-for-service receiving an additional increase based on performance quality under a new update incentive program. Qualifying providers could earn a 1% bonus, but low-performing providers would receive a 1% payment reduction.
“HR 2810 is urgently needed legislation to provide fairness and stability in the Medicare physician payment system,” Jon Hymes, AOA Washington office director, said in a letter to several U.S. representatives. “It is especially welcomed by optometrists across the country whose practices and patients have endured more than a decade of payment uncertainty and disruption caused by the current flawed system.”
A number of other medical groups generally reacted positively to the passage.