Congress Announces Agreement on Physician Payment Overhaul Legislation

King & Spalding
Contact

On February 6, 2014, lawmakers reached an agreement to overhaul the Medicare physician payment system.  The current sustainable growth rate (SGR) formula requires an annual cut in physician payments, which Congress typically cancels (the “doc fix”).  This year, the doc fix is set to expire March 31, and the announced legislation would restructure the underlying physician payment policy. Through a bipartisan collaboration between three House and Senate committees, the legislation provides for a 0.5% increase in physician payment rates annually for the next five years while transitioning the payment system to one based on quality rather than quantity.  Notable components of the legislation include a total repeal of the SGR, consolidation of certain Medicare quality payment programs into one program that rewards providers who meet performance thresholds, and a 5% bonus to physicians who voluntarily participate in alternative payment models.  However, the announcement lacked any decision on which funding offsets Congress would use to finance the cost of the legislation.  As previously reported, Congress is currently considering 65 offsets to incorporate into the legislation.  To view a summary of the legislation, please click here.

Reporter, Paige Fillingame, Houston, +1 713 615 7632, pfillingame@kslaw.com.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© King & Spalding | Attorney Advertising

Written by:

King & Spalding
Contact
more
less

King & Spalding on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide