In This Issue:

- SGR Already Strong Focus of 114th Congress:

- Implementation of the Affordable Care Act

- Other Federal Regulatory Initiatives

- Congressional Initiatives

- Other Health Care News

- Upcoming Congressional Hearings

- Excerpt from SGR Already Strong Focus of 114th Congress:

With the current sustainable growth rate (SGR) patch set to expire at the end of March, the 114th Congress has been quick to make SGR reform a priority yet again. The SGR patch – also known as the “Doc Fix” –would replace the SGR methodology for physician reimbursement under Medicare. Without reform or a patch, physicians would face a close to 25 percent cut in payments. Last week, the House Energy and Commerce Committee announced that its Health Subcommittee will hold a two-day hearing on the SGR. During the last Congress, lawmakers were close to a bipartisan deal before the deadline in March 2014. ML Strategies provided an analysis of the state-of-play on efforts last year to overhaul SGR. However, despite significant bipartisan and bicameral collaboration, Congress failed to achieve an SGR fix, and subsequent retirements—including Senator Max Baucus (D-MT) and Representative Dave Camp (R-MI)—mean a new cast of characters are now at the negotiating table.

It is unknown whether the hearings, which will take place January 21st and 22nd, signal that Congressional leaders plan to renegotiate the deal reached last year or whether the Committee is going through regular order. Regardless, Congress must still determine how to pay for the doc fix, which is estimated to cost approximately $180 billion over 10 years, according to the CBO.