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Sustainable Growth Rate: Reduction in Physician Reimbursement Rate
Monday, November 3, 2014

As we have discussed over the past years, the physicians are again confronted with the potential of a crippling reduction in reimbursement under the Medicare program, pursuant to the Sustainable Growth Rate (SGR).  Congress has traditionally kicked this can down the road one year or a little bit longer.  The clock is again running for the year 2015.  The policy adopted on October 31, 2014, by the Center for Medicare and Medicaid Services has reduced the Medicare reimbursement by 21.2%, starting in the Spring of 2015.

The question now is whether or not the lame duck Congress will be able to permanently fix the SGR, just kick the can for a year or to the new Congress, and then it will be up to the new Congress either to permanently correct the SGR, kick the can down the road for a year, as Congress has done on an annual basis, or fail to do anything and have the SGR implemented, which will have a major impact not only on the reimbursement to the physicians but on the entire Medicare beneficiary population.

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