Plan to Repeal SGR, Revamp Physician Compensation Introduced

A bipartisan Congressional group introduced a new bill that would drastically change physician compensation. The SGR Repeal and Medicare Provider Payment Modernization Act would repeal the SGR and provide for flat payment increases of .5% per year until 2018. At that point, payment would shift to an incentive-based structure.

The proposed incentive-based structure, called MIPS, consolidates the PQRS measures, Meaningful Use requirements, and the Value-Based Payment Modifier. By doing so, the bill hopes to enable an orderly transition to an alternative, value-based payment structure. However, the proposal does not address funding, which may be a difficult sticking point between the parties. Analysts estimate that the cost of repealing the SGR would be between $100 billion and $250 billion over the next ten years.

© 2014 Parsonage Vandenack Williams LLC

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