March 20, 2014
Congressional Budget Office Estimates Cost of Senate SGR Reform Measure at $180.2 Billion Over 11 years
On March 19, the Congressional Budget Office (CBO) released a report indicating that the Senate version of SGR repeal legislation, S. 2110, The SGR Repeal and Medicare Provider Payment Modernization Act of 2014, legislation that is being advanced by Senator Ron Wyden (D-OR), Chairman of the Senate Finance Committee, would cost $180.2 billion over the next 11 years, not including $35 billion in interest.
Along with the repeal-and-replace content of the legislation that is similar to language in the House bill, , S.2110 incorporates a series of extensions of current Medicare policies or “extenders” and includes additional funding for Medicaid programs and anti-fraud measures. The legislation does not indicate how the proposal would be funded.
On March 14, the U.S. House of Representatives passed H.R. 4015, the SGR Repeal and Medicare Provider Payment Modernization Act of 2014, legislation to repeal the SGR formula, by a vote of 238-181. To fund or “pay for” SGR repeal, the legislation delays the Affordable Care Act requirement that individuals buy health insurance (also known as the individual mandate). However, it faces an uncertain future as Democrats in the Senate are opposed to using the individual mandate as a funding mechanism and the President has indicated his intention to veto the legislation should it advance.
Learn more about the latest SGR vote.
Read the CBO Report on S. 2110.