With SGR Repeal, Now We Can Proceed with Medicare Payment Reform

Last week, 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. In a new blog post, The Commonwealth Fund’s Stuart Guterman explains how new Medicare legislation replaces the old payment formula with an approach that rewards high-performing providers while supporting alternative payment models such as accountable care organizations.