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April 04, 2015 12:00 AM

No spring break for Medicare SGR reform advocates

Paul Demko
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    Congress may be on spring break, but supporters of the legislation repealing and replacing Medicare's sustainable growth-rate formula for paying doctors aren't taking it easy.

    The House passed the bill with bipartisan support last month. While the Senate adjourned without taking action, signs indicate it will swiftly approve the legislation after reconvening April 13. But the long, tortured history of the SGR issue has advocates taking no chances.

    The American Medical Association and the American Hospital Association are urging members to contact their senators to press for the bill's passage. The CMS has indicated it will delay processing Medicare payments until April 15. That gives the Senate just two days to pass the legislation on their return to Washington to avoid a 21.2% pay cut for doctors.

    The SGR package includes financial incentives to encourage doctors to shift to value-based payment models such as accountable care organizations and bundled payments. The $200 billion-plus package also includes a two-year extension of the Children's Health Insurance Program and $7.2 billion for community health centers.

    Most providers support the package, even though they're being dinged to cover about half of the $73 billion in cuts to help pay for it. But children's health advocates are pushing for a four-year CHIP extension, and senior advocacy group AARP wants to lighten the hit on Medicare beneficiaries. Roughly $35 billion would be saved by hiking Part B premiums for higher-income seniors and eliminating first-dollar coverage in Medigap policies.

    “We're in conversation with Senate staff,” said AARP's Ariel Gonzalez.

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