American Academy of Family Physicians

Printer-friendly version

Share this on AAFP Connection

Share this page

AAFP Joins AMA, Other Groups in Calling on Deficit-reduction Committee to Repeal SGR

By News Staff

The AAFP has signed on to an AMA-drafted letter (4-page PDF; About PDFs) that calls on Congress' Joint Select Committee on Deficit Reduction -- known as the "supercommittee" -- to include a full repeal of the sustainable growth rate, or SGR, formula used in calculating Medicare physician payment as part of its final legislation.
AAFP Advocacy
Congress created the bipartisan supercommittee to develop a plan to achieve federal budget cuts and possible revenue increases totaling $1.5 trillion during the next 10 years. If the government fails to enact the committee's recommendations by Dec. 23, across-the-board cuts totaling $1.2 trillion will be triggered automatically.

Meanwhile, physicians face a nearly 30 percent reduction in the Medicare physician payment rate based on the SGR on Jan. 1 unless Congress acts to block the cut. If the cut goes into effect, access to care for the nation's senior and disabled citizens would be threatened, according to the letter.

Story Highlights

  • The AAFP has signed on to an AMA letter that calls on Congress' Joint Select Committee on Deficit Reduction to include a full repeal of the Medicare sustainable growth rate, or SGR, in its recommendations.
  • The letter points out that physicians face a nearly 30 percent reduction in the Medicare physician payment rate under the SGR on Jan. 1 unless Congress acts to block the cut.
  • The Academy also is supporting a Web-based advocacy campaign dubbed EveryPatientCounts.org that allows physicians, patients, health care administrators and concerned citizens to sign an online petition calling on Congress to repeal the SGR.
"The fiscally responsible course is clear," says the letter. "This is the time to repeal the SGR so that new payment models can be adopted that promote high-quality, cost-effective care."

End the Need for Last-minute Reprieves

During the past decade, Congress has acted 12 times to block Medicare pay cuts previously called for by the SGR. Yet, as the supercommittee begins its deliberations, the current baseline assumes that "massive physician payment cuts will be implemented," the letter says.

"This SGR deficit is being kept 'off the books,' which is inconsistent with accurate budget practices," says the letter. "In fact, members of Congress from both sides of the aisle have stated that the current law baseline does not reflect the policies that Congress has operated by in recent years. Any effort to stabilize our nation's finances must be based on a true assessment of future expenditures."

The letter also notes that "continued delay in replacing the SGR has escalated the cost of permanent payment reform from $48 billion in 2005 to nearly $300 billion today."

"We estimate additional short-term interventions will double the cost to approximately $600 billion by 2016," the letter adds.

"Other groups that have examined and proposed solutions to the nation's budget crisis -- including the Simpson-Bowles Commission, the Senate Gang of Six, American Enterprise Institute, Heritage Foundation and the Center for American Progress -- all acknowledged that the nation cannot continue to ignore the SGR deficit.

"These proposals called for permanent reform of the Medicare physician payment system while at the same time significantly reducing the federal budget deficit," the letter says.

"Seize This Opportunity," Urges Online Petition

The AAFP, meanwhile, is supporting a Web-based advocacy campaign dubbed EveryPatientCounts.org that allows physicians, patients, health care administrators and concerned citizens to sign an online petition calling on Congress to repeal the SGR. The petition describes the SGR as "an anchor on the Medicare program," saying it prohibits innovation, contributes to access issues for millions of seniors and serves as a disincentive to physician participation in the Medicare program.

Finding a solution to the SGR problem will not be easy, the petition acknowledges.

"But we believe there are appropriate options that promote quality and preserve access to care for current and future generations of beneficiaries," the petition says. "We urge you to seize this opportunity."


Share this on AAFP Connection

Search AAFP News Now

 

Government & Medicine

Fee-For-Service Is Here to Stay for Now, Says Policy Expert

Legislators Air Differing Views on Health Care Reform

OTC Prescription Provision Creates Burden

House Bill Would Reform Medicare Payment

Pharmacists Prescribing? Absolutely Not, Says AAFP

AAFP, Others Asks CMS to Re-evaluate Penalty Timelines

Proposed CMS Rule on Overpayment Creates Difficulties

Nurse Education Demo Must Focus on Primary Care, Says AAFP

FP Advocacy Focus of Recent Visit to Capitol Hill

Funding Needed for Family Medicine Programs

Permanently Adopting Primary Care Pay Hike Could Save Billions

Study Highlights Role of CHCs in Health Care System

Ensuring Access to GME Is Focus of Message on Capitol Hill

Congress Passes Payment Patch, Fails to Repeal SGR

AAFP Continues to Press for SGR Repeal on Capitol Hill

Groups Demand That Congress Fix the SGR

PCMH Is Answer to Medicare Payment Problems

Physician Groups Unite to Call for SGR Repeal

Threatened Medicare Payment Cuts Cause Chaos for FPs

AAFP, Medical Organizations Push for SGR Repeal

Focus of Conference Call is Shared Savings, Advance Payment

AAFP Renews Push for SGR Fix

FPs Can Expect Slight Changes in Medicare Pay for 2012

HHS Approach to Essential Health Benefits Falls Flat

CMS Delays Implementation of 'Sunshine Act'

Congress Works Out Temporary Solution to SGR Cut

Community-based Residencies Would Benefit From House Bill

GME Funding to Remain Level in 2012

House Rejects Measure to Block Medicare Pay Cut

House Addresses Medicare Payment Cut

AAFP Backs Tavenner as New CMS Administrator

Supercommittee Fails to Address SGR

Overcoming Scarce Resources to Enact Health Care Reform

Medicare Payment: Value Is as Important as Volume

AAFP President-elect Makes Return Visit to Capitol Hill

Insurance Exchanges, CO-OPs Might Provide Opportunity for FPs

AAFP Members Speak Out on Title VII Funding

Campaign Addresses Need for Medicare Payment Reform

AAFP Continues to Press Congress for Payment Solution

AAFP Leaders Take On Washington

Campaign Focuses on GME Outreach

'Family Medicine Matters,' AAFP Members Tell Congress

AAFP Outlines Suggested Changes for CO-OP Program

Groups Call on Supercommittee to Address Medical Liability Reform

Grassroots Efforts to Repeal SGR Continue

Bill Linking Mandatory Education to Prescribing Not Needed

Blended Payment Model Gives Boost to Primary Care Services

AAFP Joins AMA, Other Groups in Calling for SGR Repeal

Eliminating SGR May Come With High Price

Tobacco Oversight Must Include Cigars, Say AAFP, Other Groups

AAFP Rallies Congress of Delegates on Medicare Payment

AMA Task Force Focuses on Fixing the SGR

2012 Physician Fee Schedule Needs Work, Says AAFP

New Task Force Takes Steps to Better Value Primary Care

Deficit-reduction Plan Must Eliminate SGR, Says AAFP

Physicians File Lawsuit Over RUC, CMS Relationship

Policy Brief Explains HHS Insurance Exchange Plans

Deficit-reduction Plan Falls Short, Says AAFP President

YouTube Video Designed to Encourage SGR Repeal