Congressional Budget Office Issues Cost Estimate for Legislation to Repeal and Replace SGR

The Congressional Budget Office (CBO), the accounting arm of Congress, released a report detailing the cost of the Senate Finance Committee’s legislation to repeal and replace the Medicare Sustainable Growth Rate (SGR). According to CBO, the physician payment section of Senate Bill 1871 the "SGR Repeal and Medicare Beneficiary Improvement Act of 2013," would cost approximately $112 billion over 10 years. 

CBO also updated the costs for two other SGR repeal and replacement bills covering the same 10 year time frame.  The House Ways and Means Committee's legislation would cost $121 billion and the House Energy and Commerce Committee' legislation would cost $146 billion.  

In September of 2013, CBO estimated the House Energy and Commerce Committee's legislation would cost approximately $29 billion more, or $175 billion.  CBO did not previously score the House Ways and Means Committee’s legislation.

ASA has opposed SGR repeal and replacement legislation that included 10 year payment freezes and punitive quality programs. ASA continues to closely monitor all efforts to repeal and replace the SGR.

Review the CBO scores.

Learn more about the Senate Finance and House Ways and Means Committees' legislation.