ARTICLE · 06 NOVEMBER 2013

Bicameral, Bipartisan SGR Proposal Released

Drinker Biddle & Reath LLP

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On Thursday, October 31, 2013, the Senate Finance Committee and the House Ways and Means Committee released a draft discussion of their proposal to permanently fix the sustainable growth rate (SGR) formula, which Medicare uses to reimburse physicians and other health care professionals.

United StatesGovernment, Public Sector

On Thursday, October 31, 2013, the Senate Finance Committee and the House Ways and Means Committee released a draft discussion of their proposal to permanently fix the sustainable growth rate (SGR) formula, which Medicare uses to reimburse physicians and other health care professionals. (More information on the SGR is available here.) This discussion draft is similar to legislation that unanimously passed out of the House Energy and Commerce Committee in July 2013. (More information on the Energy and Commerce legislation is available here.)

The discussion draft would prevent the imposition of the SGR cuts (estimated to be 24 percent for 2014), but does not call for any payment increases through 2023. Beginning in 2024, health care professionals who participate in advanced alternative payment models (see below) would be eligible for a two percent update, while all other health care professionals would receive a one percent update. The Energy and Commerce

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