Senate and House Leaders Review Medicare Physician Pay Issue 

Congressional representatives have been reviewing the possibility of cutting $100 billion from the cost of permanently fixing Medicare physician payments by eliminating from the payment formula drugs administered by doctors. Under the sustainable growth rate formula, physicians face a Medicare payment reduction annually, but Congress passes a measure to avoid the cut. Lawmakers hope to permanently eliminate the cuts, possibly by rebasing the SGR formula. The plan currently being discussed by lawmakers would remove the cost of physician-administered drugs from SGR -- a change long-supported by doctor groups – including the AMCNO. Removing physician-administered drugs from SGR would reduce the estimated $300 billion cost of permanently forgoing physician cuts by one-third. Congress plans to address the fix as part of an effort aimed at overhauling the health insurance system next year. Every year the AMCNO has written to Congress to stop the Medicare physician payment cuts and asking for a change to the SGR formula – the AMCNO will continue to monitor the debate in Congress regarding the SGR formula in the coming months and provide updates to our membership.