An overhaul of the Medicare physician payment system was a hot topic last week in both chambers of Congress. Medicare reimbursement for physician services will be reduced by about 25 percent in January 2014, unless Congress acts first to implement a “doc fix.” On Tuesday, the House Ways and Means Health Subcommittee held a hearing on proposals that would repeal the Sustainable Growth Rate (SGR) formula. In his opening statement, Health Subcommittee Chairman Kevin Brady (R-TX) said that “We need to repeal the SGR so that seniors continue to have access to their local doctors…The current fee-for-service (FFS) payment system treats all services the same. It fails to take into account the quality of the care provided or how efficiently that care was furnished. This needs to change too.” Health Subcommittee Ranking Member Jim McDermott (D-WA) clearly stated his position on the matter. “It will be difficult if not impossible for me and other Democrats to support a package paid for by shifting costs to other beneficiaries,” he said. “This could be financed by the windfall for PhRMA when we enacted Medicare Part D.” A full write-up of the hearing is attached.
In the Senate, Finance Committee Chairman Max Baucus (D-MT) and Ranking Member Orrin Hatch (R-UT) issued a letter on Friday calling on health care physicians and other providers to bring ideas to the table on how to improve Medicare’s physician payment system. In the letter, the lawmakers strongly urge health care providers to take a more active role in framing how to improve the current system and help physicians transition to new payment models.
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American Association for Homecare
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