Mid December, the House of Representatives passed a bill, H.R. 3630 that would, among other things, “fix” the SGR problem for 2 years. Under this bill, instead of a 27.4% cut in the Medicare Physician Fee Schedule Conversion Factor (CF) due to the SGR, there would be a 1% increase in the Medicare Conversion on January 1, 2012. In addition the bill would authorize another 1% increase in the CF on January 1, 2013. Now how many times have we heard this message over the years. Like before, if Congress fails to fix the SGR between now and the end of 2013, the SGR formula would mandate a cut in the CF in excess of 30% on January 1, 2014.
According to HBMA, “(i)t is highly unlikely that the U.S. Senate will join the House in passing H.R. 3630 as presently written. In addition to a short-term SGR fix and extending the payroll tax cut (both enjoy broad bi-partisan support), the bill would make a number of other changes to federal policy that many consider controversial. For example, the bill would make significant cuts in hospital payments, Rural Health Clinic payments, Skilled Nursing Facility payments, expand means testing under Medicare, mandate construction of the Keystone Oil pipeline and make controversial reforms to the unemployment insurance program.”
In the December 14th Wall Street Journal, a sizable advertisement placed by the Coalition to Protect America’s Health Care, speaks out against the current fix. You see, while fixing SGR continues to enjoy broad bi-partisan support, there is no agreement on how the “fix” should be paid for. According to the CBO, temporarily repealing the 27.4% SGR cut and replacing it with 1% increases for two years, would increase Medicare expenditures by approximately $38 Billion over the next 10 years. Oddly, the approximate savings that would result from the Hospital, SNF, RHC payment cuts.
If you have not done so already – and even if you already written – you are strongly encouraged to contact your Senators and Representatives and let them know how you feel about their failure to fix the SGR problem.
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Editor: Philip Blann (pblann@anesthesiabilling.com).
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