American Medical Association (AMA) President Cecil B. Wilson, MD, testified before the House Energy and Commerce Health Subcommittee on May 5, urging Congressional leaders to reform the deeply flawed Medicare physician payment formula, also known as the Sustainable Growth Rate (SGR). This formula will trigger a drastic cut of nearly 30% on January 1.
“The SGR is a failed formula,” said Wilson. “The longer we wait to cast it aside, the deeper the hole we dig. It is past time to replace the SGR with a policy that preserves access, promotes quality, and increases efficiency.”
In his testimony, Wilson recommended a three-pronged approach to reforming the physician payment system. This approach includes repealing the SGR, implementing a 5-year period of stable Medicare physician payments, and laying the pathway for a new payment system.