The American Medical Association Continues to Push for Changes in the Medicare physician payment formula

The AMA and over one hundred medical associations sent a letter this week to the president, vice president and congressional leaders urging reform of the Medicare physician payment formula—the sustainable growth rate (SGR)—to be part of any deficit reduction plan. Included in the letter were several key points outlining the many problems with the SGR formula and the fact that the cost of physician payment reform has grown over the years as Congress enacted frequent short-term fixes; noting that as recently as 2005, the cost of permanent reform would have been $48 billion, but today it is estimated to be nearly $300 billion. The SGR is set to cut Medicare physician payments by nearly 30 percent on Jan. 1, 2012. The AMCNO has written to our Congressional representatives repeatedly asking for changes to the SGR formula and we agree with the items outlined in the AMA letter and we will continue to press for changes in the payment formula. To view the letter go to: http://www.ama-assn.org/resources/doc/washington/sgr-sign-on-letter-27june2011.pdf