With SGR Repeal, Now We Can Proceed with Medicare Payment Reform
Yesterday, the Senate passed the long-awaited permanent “doc fix,” previously passed by the House of Representatives, to repeal the sustainable growth rate formula (SGR) and avert a 21 percent across-the-board cut in Medicare’s physician fees. President Obama has announced he will sign the bill into law, opening the door to broader use of new and more effective ways of paying physicians. <br /><br />
In a new blog post, The Commonwealth Fund’s Stuart Guterman says that the legislation replaces the SGR with an approach that rewards high-performing providers while supporting alternative payment models, such as accountable care organizations. He explains how this new payment program will work, and how the tools it offers could help lower costs while improving care.