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Sustainable Growth Rate: An Update as to the Status of the Congressional Response

February 5, 2014 | No Comments
Posted by admin

As you are aware, the implementation of the Sustainable Growth Rate (an approximately 30% reduction in payment to physicians in the Medicare program) was delayed until March 31st to provide an opportunity to permanently resolve the issue.

Two competing bills have been reported in the House and the Senate (see our December 13, 2013 blog).  As of this date, no action has been taken on either bill.  The reason for that is, as of this date, no one has been able to definitively identify an acceptable offset to the cost that will be incurred by either proposal for the resolution of the SGR.  Without the finding of an offset, the resolution of the SGR will not occur and more than likely will kick the can down the road again until the end of this year.

Hospitals are strongly fighting any attempt to reduce the payments to hospitals to fund the resolution of the Sustainable Growth Rate and the only other proposal, which is also being vigorously opposed, was made by retiring Senator Jay Rockefeller from West Virginia who proposed reducing payments to the pharmaceutical companies.

Until this issue is resolved, we will post updates periodically in regard to the SGR.


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