House passes 12-month SGR patch

Just weeks after bipartisan legislation to permanently repeal the sustainable growth rate (SGR) formula stalled in Congress, the U.S. House of Representatives has passed by voice vote HR 4302, the Protecting Access to Medicare Act of 2014, which prevents a 24% cut to Medicare physician reimbursement rates that would go into effect on April 1.

The bill replaces the cut with a 0.5% increase in payments through December of this year and a 0% update from January 1 to April 1, 2015.

Not all medical organizations were happy with the bill, and they expressed disappointment that Congress has been unable to agree on a permanent solution.

"By extending the Medicare provider sequester and 'cherry-picking' a number of cost-savings provisions included in the bipartisan, bicameral framework, the Protecting Access to Medicare Act actually undermines future passage of the permanent repeal," Dr. Ardis Dee Hoven, president of the American Medical Association (AMA), said in a statement.

Dr. Molly Cooke, president of the American College of Physicians (ACP), noted that this is the 17th short-term Medicare SGR patch in 11 years.

"By voting for the patch, the House failed to heed the unified call of physicians who believe that now is the time for the House and Senate to reach agreement on the bipartisan reforms that were agreed to by the leaders of the Medicare committees of jurisdiction," Cooke said.

House Energy and Commerce Committee Chairman Fred Upton (R-MI) blamed the Senate for the bipartisan bill's failure, and he emphasized that the patch will also result in $1.2 billion in savings over 10 years, according to the Congressional Budget Office.

"Republicans and Democrats of the House and Senate have agreed to the policy of a permanent solution, and this chamber has already passed a bipartisan, fully paid-for bill that would make it a reality," Upton said. "But, while we wait for the Senate to join us, it is important for us to keep the promises we have made to seniors who depend on the Medicare program."

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