Medicare SGR Formula Fix

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The Daschle Imperative

[By Staff Reporters]caduceus

According to American Medical News, January 19, 2009, Tom Daschle, appearing at his first confirmation hearing to be Health and Human Services [HHS] secretary, pledged to replace Medicare’s sustainable growth rate [SGR] formula with a system that bundles payments in an attempt to reward good patient outcomes.

Recommendations

Apparently, Daschle also promised to examine inefficiencies in private Medicare plans, discourage tobacco use, support the training of primary care physicians and work with lawmakers in a bipartisan manner. Reports suggested that Medicare’s SGR formula “just isn’t working right.”

Expiring Patches

The latest in a series of temporary SGR reform payment patches expires at the end of 2009. If Congress doesn’t act before Jan. 1, 2010, doctors will undergo an estimated 21% Medicare pay cut. Any new formula should focus on bundling payments based on episodes of care instead of paying per procedure. Daschle said in the News reported, “I’m not one who supports the so-called performance- based approach, but I do believe that there are episodic ways with which to look at reimbursement that give us a lot more latitude” to reward better outcomes.

Assessment

He did not elaborate further.

Conclusion

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