House, Senate Committees approve bill to overhaul how Medicare physicians are paid

December 16, 2013
The Wall Street Journal (12/13, Schatz, Subscription Publication) (12/13, Schatz, Subscription Publication) reported that the House Ways and Means Committee and the Senate Finance Committee on Thursday approved legislation to revamp how Medicare physicians are paid. The measure would scrap the current way physicians are reimbursed by Medicare and replace it with a system under which doctors would be rewarded for meeting quality standards. In a statement, the AMA lauded the move. Because lawmakers have not determined how to pay for the legislation, it is not expected to pass before the end of the year.

The Washington Times (12/13, Howell) reported that lawmakers “both parties said they were driven by the desire to provide year-over-year certainty to doctors and the seniors under their care.” The Times quotes Senate Finance Chairman Max Baucus (D-MT) as saying, “After a decade of Band-Aid solutions, it is time for this committee to act. I am proud to say that today we are taking the first step.”

Meanwhile, CQ (12/13, Ethridge, Subscription Publication) reported that “the House on Thursday night passed, 332-94, a bipartisan budget deal (H J Res 59 (12/13, Subscription Publication)) that was coupled with a short-term fix to avert a scheduled 24 percent cuts in physicians’ reimbursements that would begin Jan. 1 under the current formula.” The article adds that “stakeholders hope the three-month…patch, which would give providers a 0.5 percent update, will buy more time for finishing work on a replacement measure.”

Modern Healthcare (12/12, Subscription Publication) reported that in a statement, AMA President Ardis Dee Hoven, MD, said, “Today’s strong, bipartisan votes by the Senate Finance and House Ways and Means Committees, following similar action last July by the House Energy and Commerce Committee, shows there is overwhelming, bipartisan support for ending SGR in a fiscally responsible manner and closing the book on the annual cycle of draconian Medicare physician payment cuts and short-term patches.”

The AMA Wire (12/13) reported that in the statement, Dr. Hoven added, “This long-overdue policy change provides the stability that physicians need to pursue delivery innovations that help improve patient care and reduce costs for American taxpayers.”

In a separate article, AMA Wire (12/13) reported that “as legislation to eliminate Medicare’s SGR formula advances in Congress, the AMA continues to urge lawmakers to include positive payment updates in the final legislation.”

In a Q&A in Health Leaders Media (12/13), Dr. Hoven “spoke with HealthLeaders Media…about the AMA’s latest efforts to repeal the SGR, and why it’s different this time around.”

Article courtesy American Medical Association.