President Obama's proposed 2012 budget would postpone for two years the scheduled 25% cut in the Medicare Physician Fee Schedule (MPFS) under the sustainable growth rate (SGR) formula, according to the U.S. Office of Management and Budget.
In all, the budget proposes $80 billion to fund the Department of Health and Human Services in 2012, slightly more than the 2010 funding level.
Obama's proposal would continue the current MPFS payment levels and offset the $62 billion cost for the next two years with specific health savings, assuming that SGR relief in future years will be fully offset and consistent with recent congressional action, the Office of Management and Budget said.
The budget will implement the Affordable Care Act quickly and efficiently, Obama said in posted remarks:
"As a down payment toward a permanent fix, the budget proposes additional reforms to our healthcare system that would be sufficient to pay for two years of fixing the Medicare's sustainable growth rate, thus preventing a large cut in Medicare reimbursements for doctors that would jeopardize care for older Americans," he said.
