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San Francisco Marin Medical Society Blog

SGR Update: HR 2 Replaces HR 1470



Today, the Medicare physician payment reform legislation was modified to include budget offsets, policy extenders, and other provisions and reintroduced by Rep. Michael Burgess, MD (R-TX) as HR 2, the “Medicare and CHIP Reauthorization Act” (MACRA).

Click here for a section-by-section analysis prepared by staff of the House committees of jurisdiction.

HR 2 replaces HR 1470, and builds on the bipartisan, bicameral SGR replacement policy negotiated last year. Additional provisions of interest include the following:

  • The work GPCI (Geographic Practice Cost Index) floor was extended through 2017.
  • The therapy caps exceptions process was extended through 2017.
  • The Qualifying Individual (QI) program that provides Part B premium support for low-income Medicare beneficiaries was extended permanently, as was the Transitional Medical Assistance (TMA) program that allows Medicaid recipients to maintain coverage for a year as they transition from welfare to work.
  • Funds for Community Health Centers and the National Health Service Corps and the Teaching Health Center GME Payment Program were all extended through 2017.
  • The Children’s Health Insurance Program (CHIP) was extended through 2017.
  • For new enrollees beginning in 2020, Medigap plan coverage will be limited to costs above the amount of the Part B deductible.
  • Income-related premiums for Medicare Part B and D under current law have been readjusted; those with incomes between $133,501 and $160,000 will increase from 50% to 65%, those with incomes at $160,001 and above will increase from 65% to 80%.
  • The decision by the Centers for Medicare and Medicaid Services (CMS) to eliminate bundled payments for 10-day and 90-day global surgical services has been reversed; instead, CMS will collect data on these services beginning in 2017 to determine the accuracy of payment rates.

The bill is scheduled for consideration by the House Rules Committee on March 25. Floor debate is expected to occur on March 26, with a vote taking place early afternoon.

Also on March 26, The Senate will be voting on amendments to the FY 2015 budget resolution, which cannot be interrupted for other business. The budget votes are expected to continue well into the night, after which some action could occur regarding HR 2.



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