Q: What is the sustainable growth rate?
A: Known as the SGR, the formula was created as part of a 1997 deficit reduction law designed to rein in federal health spending by linking physician payment to an economic growth target.
For the first few years after it was created, Medicare expenditures did not exceed the target and doctors received modest pay increases. But in 2002, doctors reacted with fury when they came in for a 4.8 percent pay cut.
Every year since Congress has staved off the scheduled cuts.
But each deferral just increased the size – and price tag – of the fix needed the next time.….
...Q: How is Congress going to pay for this?
A: That’s unclear. None of the committees have identified how to finance the doc fix, intentionally staying away from the thorny issue in order to build political momentum to pass the legislation. Other Medicare providers, such as hospitals, are concerned that Congress may reduce their Medicare payments to help finance a repeal of the SGR……"
Congress Is Poised To Change Medicare Payment Policy. What Does That Mean For Patients And Doctors? | Kaiser Health News