The Senate has passed H.R. 2, legislation that would permanently repeal and replace the Medicare Sustainable Growth Rate formula (SGR). There were six amendments offered during floor consideration and all were defeated. Therefore, the Senate has passed the bill in the identical form as the House passed version. This morning, the president signed this bill into law.
The bill immediately repeals the SGR, retroactive to April 1st therefore averting a 21% reduction in Medicare fee-for-service (FFS) payments to providers. It replaces the SGR with a new payment system that includes automatic payment updates for physician fee schedule payments for five years, transitions Medicare FFS payments towards a value-based payment system and incentivizes the development and participation in new, alternative payment models, among other notable provisions.
WHAT ELSE DOES THIS MEAN?
- There will be no more delays for ICD-10. Implementation deadline is October 1, 2015.
- Instead of being repealed, the physical therapy cap exceptions process will continue through December 31, 2017.
Read more about the Medicare changes