Bipartisanship Breaks Out Over SGR Repeal

Washington froze over and pigs were spotted flying over the Capitol dome on July 23, 2013.

That’s when the Republican-controlled House of Representative’s Energy and Commerce subcommittee on health passed a seriously bipartisan bill to fix the Sustainable Growth Rate (SGR) formula. There are no reports that a floor vote on the bill has been scheduled.

It’s too early to get excited because usually healthcare legislation introduced in the House dies in the Senate and if it survives the Senate, faces a certain veto by the President. But this time, Republicans Michael Burgess, M.D., Fred Upton and Joe Pitts are joined by Democrats Frank Pallone, Jr., Henry Waxman and John Dingell as authors of the bill to replace the SGR.

The measure would repeal the sustainable growth rate, replacing the mandated annual physician reimbursement cuts with a pay-for-performance model. Under this system, physicians will receive a 0.5% annual update, with additional reimbursement available to high-performing providers starting in 2019. The bonus pay would be based on quality measures in existence or new ones that would be developed. Underperforming doctors would see reimbursements reduced.

Representative Waxman is the Ranking Member of the House Energy and Commerce Committee’s Health Subcommittee. Getting his support is a huge win for physicians because he is the leading Democrat voice on healthcare in the House. Said Waxman, “I’m pleased to be part of this bipartisan effort to reform the Medicare physician payment system and replace the SGR system that has resulted in the specter of large unsustainable cuts in physician payment every year, frustrating Medicare physicians and beneficiaries alike. We know this legislation is a work in progress. While we all agree on the problem, getting the right solution is complicated and necessarily complex. We want to move our payment system to one that rewards quality and efficiency and improves patient outcomes. We want to build on the reform efforts underway. This is a first step and an important one. It undoubtedly can and will be improved as we move through the legislative process, but I believe we already have a stronger product because of our joint effort. This is a process that has to start—we can’t accept the current system any longer. We have bipartisan agreement on that, and I believe that commitment to working together will serve us well.”

There is a saying in Washington that the Senate is where bills go to die. Perhaps with bipartisan support, this year the Senate is where the SGR went to die.