Committees offer detailed plan to repeal SGR

Before taking off for the July 4 recess, the House Energy and Commerce and Ways and Means committees released a more detailed legislative framework to repeal Medicare's sustainable-growth rate formula.

On May 28, the Energy and Commerce committee released a draft bill and sought comment from stakeholders until June 10. The revised draft legislation unveiled Friday incorporates that feedback. The bill would repeal the troublesome formula used to calculate payments for Medicare-participating physicians and replace it with a fee-for-service system in which providers would develop quality measures. It would also allow providers the option of leaving the fee-for-service system for other care-delivery models. The latest version of the bill offers a few scenarios for updated payment models.

Perhaps the greatest obstacle to the years-long battle of overturning the SGR is finding a way to pay for it. Friday's announcement from the two committees did not offer a funding solution, but House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) indicated that the committees will address the issue.

“This is still a work in progress, but make no mistake, the final product will secure a long-term, fully paid for solution that improves quality of care, and, once and for all, removes the gimmicks that have plagued the SGR system,” House Energy and Commerce Committee Chairman Fred Upton (R-Mich.) said in a news release about the draft measure.

Committee leaders have asked for additional comments on this latest draft bill by July 9. Upton has said he hopes to bring a full bill to the House floor by the August recess.

Follow Jessica Zigmond on Twitter: @MHjzigmond