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San Francisco Marin Medical Society Blog

SGR Update: U.S. Senate Expected to Vote on SGR on April 14



The Senate leaders (McConnell and Reid) are working on a time certain agreement to hold the vote on HR 2, the Medicare SGR and Children’s Health Insurance Program Reauthorization Act, tomorrow, April 14. 

There are several potential floor amendments but the Leadership are trying to discourage all amendments. SFMS and CMA are asking Senators Feinstein and Boxer to support HR 2 without amendment.

If the Senate amends the bill, it will have to go back to the House for concurrence which could spell problems for the SGR. The House Republicans are not likely to compromise on Children's Health Insurance Program (CHIP) and it emboldens the tea party to wreak havoc with the funding package. Most importantly, the 21% Medicare payment cut took effect on April 1 and CMS must pay the claims at the lower rate starting on April 15. Thus, the Senate only has 1-2 days (after they return from recess) to get this done before the cut really occurs. Every day that the cut is in effect, it causes major disruptions and chaos for physician practices. Even if there is a retroactive solution, it can cause disruptions and payment delays for up to 6 months. Last time this happened, some physicians did not get paid for 6 months and they had to take out bank loans; many patient visits were delayed.

Along with more than 780 physician organizations, SFMS and CMA continue to believe that passage of HR 2 is important because it repeals the SGR and brings stability to physician practices. HR 2 simplifies and consolidates the burdensome, penalty-based, quality reporting programs and reinstitutes bonus incentive payments – up to 12%. It maintains the fee-for-service program and also allows physicians to participate in alternative payment models with a 5% bonus payment. And finally, it provides $125 million in funding to help small practices transition to the new models or participate in quality reporting. With the costly SGR ($140-370 billion) behind us, it will be much easier to work with Congress to make improvements to the payment system at a much lower cost. The SGR has posed a barrier to achieving any payment reform for a decade. 

Physician Call to Action

  • Call your senators using the AMA's toll-free Grassroots Hotline: (800) 833-6354.
  • Send an urgent email to your senators reinforcing the need for SGR repeal now.
  • Contact key senators still undecided on this most critical issue directly through their own social media channels and share with your own Facebook friends and Twitter followers as well!


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