New Issue Brief examines debate around Medicare physician payments. The Sustainable Growth Rate (SGR) was created to provide access for patients, control federal health spending on Medicare Part B, and distribute costs across different medical specialties. However, federal health care expenditures have continuously grown over their targets in the past decade, rendering the SGR obsolete. The SGR is complicated: It is necessary that industry stakeholders understand it fully, and that they consider its modification in the broader context of the industry's sustainability rather than a narrow context focused exclusively on physician payments.
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