With SGR Repeal, Now We Can Proceed with Medicare Payment Reform

By Stuart Guterman

Yesterday, the Senate passed the long-awaited permanent “doc fix,” previously passed by the House of Representatives, to repeal the sustainable growth rate formula (SGR) and avert a 21 percent across-the-board cut in Medicare’s physician fees that was originally scheduled to take effect on April 1.¹ The President has announced that he will sign the bill into law,² opening the door to broader use of new and more effective ways of paying physicians.

• Legislation gives policymakers new tools for improving care, lowering costs
• Legislation replaces the SGR with payment that rewards high-performing providers