Society Joins 113 Medical Societies in Urging Repeal Of SGR Formula, Permanent Medicare Reform

The one-year temporary fix to the Medicare Physician Payment formula is scheduled to expire on December 31, 2011. If Congress does not act prior to the end of the year, the current formula calls for physician reimbursement cuts of 29.5 percent on January 1, 2012 for physician services.

The current cost of replacing the Medicare physician payment formula is $300 billion over 10 years. However, it could spike to $500 billion if Congress delays taking action for a few years.

On June 27, 2011, the Heart Rhythm Society joined 113 state and medical specialty societies in sending a letter to U.S. President Barack Obama, urging him to repeal the Medicare Sustainable Growth Rate (SGR) formula and permanently reform the Medicare physician payment system as part of any final agreement between Congress and the Administration on authorizing an increase in the debt ceiling. Read the letter » (PDF, 24K)

In the letter, it was stated that "a credible budget agreement can not include a Medicare budget baseline that assumes draconian physician payment cuts of almost $300 billion...Before more savings are taken out of Medicare for other purposes, Congress should ensure that the necessary funding is provided, in a credible and fiscally responsible manner, to ensure beneficiaries' continued access to physicians."

The letter continued, "An agreement on the debt ceiling legislation provides the best — and perhaps only —opportunity to ensure stability in Medicare payments, ensure continued beneficiary access to care, and address the SGR deficit in a fiscally responsible manner....Many of our organizations have put forth concrete options for replacing the Medicare physician payment system, promoting quality, and increasing efficiencies in the Medicare program. However, none of these are possible under the Sustainable Growth Rate. We stand ready to work with you to achieve these goals."