May 31, 2005

SGR Fix Bills Introduced

House Ways and Means Committee members Clay Shaw (R-FL) and Ben Cardin (D-MD) have introduced H.R. 2356, the “Preserving Patient Access to Physicians Act of 2005,” that would replace the Medicare SGR formula with a positive update in 2006 and tie future updates thereafter to a weighted average of input prices for physicians’ services.  In short, the bill follows MedPAC’s recent recommendations but lacks a financing mechanism.  Its text can be found at: 

http://frwebgate.access.gpo.gov/cgibin/getdoc.cgi?dbname=109_cong_bills&docid=f:h2356ih.txt.pdf 

The bill is consistent with ASA policy, and ASA members should feel free to contact their U.S. House Representatives to urge cosponsorship.

In the Senate, Finance Committee member Jon Kyl (R-AZ) and Senator Debbie Stabenow (D-MI) have joined in introducing S. 1081, a more targeted bill by the same name as the House bill, which would accomplish a two-year fix in the application of the SGR formula by setting the Medicare physician payment update at 2.7% in 2006 and an estimated 2.6% in 2006, rather than allow cuts to go into effect under current law in both of these years. Its text can be found at:

http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=109_cong_bills&docid=f:s1081is.txt.pdf

Contacts to all U.S. Senators are requested in support of this measure to highlight the need to avert cuts starting in January and replace them with positive updates reflective of the increasing costs of providing medical services.

Note: Committee action on related measures not yet introduced in the House and Senate - but which are expected to include links to quality standards - is expected this summer and into the fall.  ASA continues in an active dialogue with the Hill and the Centers for Medicare and Medicaid Services (CMS) on the full array of these important and evolving Medicare issues.