SGR - Here We Go Again!

The House Rules Committee reported a rule for the consideration of the extenders bill (H.R. 4213) that includes a $22.9 billion patch for the SGR formula. The proposal would provide a 2.2 percent Medicare physician payment update for the remainder of 2010, a 1 percent update for 2011, and revert back to current law in 2012—when an estimated cut of 30-32 percent would be called for under the SGR formula. By scaling back the originally proposed physician payment patch and other provisions, negotiators reduced the cost of the overall extenders package by about $50 billion, with plans to bring it to the House floor today.

Because the week-long Memorial Day recess is about to begin, it does not appear that legislation to stop the 21 percent Medicare physician pay cut can be passed by the House and Senate prior June 1, when the most recent payment extension expires. There has been some discussion of passing another very short-term 30-day or 60-day extension bill, so that negotiations on the larger bill can be completed after the recess. However, physicians should prepare for the possibility that Congress will once again pass a one or two-month extension after the deadline has expired, with a retroactive effective date of June 1.

Unfortunately, members of the Congressional Blue Dog Coalition and others remain concerned that the bill would still add $84 billion to the federal deficit. They are also concerned about the bill’s uncertain future in the Senate. As a result, it is becoming clear that the House leadership cannot secure enough votes to pass the current version of the bill today.