Top House lawmakers said Friday they’re inching closer to a plan that repeals the formula that pays doctors for each service provided under Medicare and replaces it with one that rewards providers for high-quality care — a measure that both sides of the political aisle have said is long overdue.
Congress has tried for some time to repeal the Sustainable Growth Rate (SGR) formula, which lawmakers override each year with a fiscal patch known as the “doc fix” — even when the formula calls for a cut.
Amid growing whispers about a House plan, Ways and Means Chairman Paul Ryan, Energy and Commerce Chairman Fred Upton and top Democrats from both panels said they are working on a deal ahead of an April 1 deadline for another fix.
“We are now engaging in active discussions on a bipartisan basis – following up on the work done by leadership – to try to achieve an effective permanent resolution to the SGR problem, strengthen Medicare for our seniors, and extend the popular Children’s Health Insurance Program,” lawmakers said.
The hardest part will be finding the billions needed to pay for the fix, as health costs often outpace the formula, causing a shortfall.
Senate Democrats had cheered signs this week that Republicans on the other side of the Capitol were mulling a permanent solution.
“Repealing SGR and replacing it with a sensible and permanent payment system would ensure that Medicare is on a sustainable path going forward,” Sen. Ron Wyden, Oregon Democrat, said. “And that is good news is for everybody.”
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
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