Bill Introduced to Delay SGR Cut to 2014

Today Democrats unveiled the beginnings of a bill to delay the 21% Medicare Physician Fee Schedule (MPFS) cut until 2014. At which time, without a permanent fix, the cut would increase to an estimated 30-37%.

Senator Max Baucus (D-MT) and Representative Sander Levin (D-MI) have also included in the bill provisions to extend unemployment benefits, tax credits for COBRA premiums, and several other tax breaks. The bill also closes several tax loopholes which would raise billions of dollars in revenue. Full details should come to light once the bills text is released later today.

The AMA has already started its campaign against this additional temporary fix to the MPFS. With statistics on their side the AMA has started releasing an ad showing the increasing cost of these temporary fixes. A permanent fix to the sustainable growth rate (SGR) would cost $250 billion today and in 2015 it will be in excess of $500 billion. If a permanent fix would have been implemented 5 years ago the price tag would have only been $49 billion.

Med USA will continue to monitor this situation and keep you informed of the latest developments. If you have any questions please feel free to contact Liz Gardner at 801.352.9500 ext 1308 or email lgardner@medusabil.com