Stop Medicare Payment Cut of 25% on January 1, 2014

December 5, 2013 Dear Physicians – Unless Congress intervenes, once again physicians are facing cuts in Medicare payments January 1, 2014 - nearly 25% - due to the failed Sustainable Growth Rate or SGR formula which was adopted as part of the deficit reduction law in 1997. As you know, the DCMA, FMA and AMA fight these cuts every year. Stopping scheduled payment cuts caused by the SGR has become a yearly ritual on Capitol Hill, leading to physicians’ frustration with the system and a growing budget problem because each deferral increases the size and price tag of the next fix. Some positive news from The JAMA Forum, November 18, 2013 - The annual panic affecting the nation’s physicians is in full swing. “Medicare docs face 24% pay cut... again,” reported CNN Money this month. But after almost a decade of kicking the can down the road, Congress is closer than ever to solving one of Medicare’s most vexing problems. Recently, 3 congressional committees with jurisdiction over Medicare physician payment made progress towards replacing the Medicare Sustainable Growth Rate (SGR), a mechanism intended to help control Medicare spending. On July 31, 2013, the House Energy and Commerce Committee unanimously reported favorably on HR 2810, a measure to repeal the SGR, and on October 30, 2013, the Senate Finance and House Ways and Means committees released a joint proposal also to repeal the SGR formula and replace it with payment reform. Impressively, there appears to be bipartisan agreement to link SGR repeal with a strategy to move away from traditional fee-for-service payments to physicians. This recent congressional activity may be the best opportunity to fix the SGR permanently, and the physician community can and should take a leadership role, especially because any SGR fix would demand strong clinician innovation to identify payment and delivery reforms. (above emphasis and ‘color’ mine) All Physicians need to keep the pressure on Congress to: - Stop the almost 25% Medicare pay cut scheduled for January 1, 2014, and - Permanently replace the failed SGR formula used to set payment amounts. You can send an email to your representative and senators or place a phone call today via the AMA toll-free grassroots hotline at (800) 833-6354. Urge lawmakers to continue working in a bipartisan manner and tell them to elevate repeal of the flawed Medicare SGR formula to the top of their priority list for 2014. (Since Congress adjourns December 13, 2013 for the remainder of the year, this unfinished legislative item will move to 2014.) Be sure to visit FixMedicareNow.org for the latest information and resources on the AMA's campaign to engage physicians, patients and policymakers in the effort to repeal the flawed Medicare SGR formula and achieve reform that will transform Medicare into an effective, 21st century model of care. For more information, please visit: