Repeal of SGR could cost up to $376.6B
As congressional lawmakers reached an agreement Tuesday that would avoid a government shut down before the presidential election, the Congressional Budget Office released an analysis estimating the cost of alternative policies to modify the physician payment rate set by the sustainable growth rate.
In the CBO's analysis, the agency estimates a 27 percent payment cut to physicians in 2013. The various alternative policies to offset the cut would cost between $15.3 billion and $376.6 billion over the 2013-2022 period.
[See also: SGR is curveball in budget debate.]
According to CBO's analysis, restructuring or replacing the SGR are the most expensive options, ranging from $254.2 billion to $376.6 billion over the 2013-2022 period.
[See also: ACP releases national healthcare report and argues for SGR repeal.]
"As always, the CBO estimates provide a useful pool of analysis that can help us gauge the magnitude of increases or decreases in federal outlays produced by legislative changes," said Ken Perez, director of healthcare policy and senior vice president of marketing at MedeAnalytics, a healthcare performance analytics company.
"In the final analysis," he added, "the CBO estimates give us a sense of the 'price tag' of SGR reform, though of course they do not address the tougher question of how we will pay for such legislative changes."
While the CBO based its estimates on its March 2012 baseline, the agency noted that the baseline and the estimates are likely to change in November when the final rule setting the physician fee schedule is issued.
According to Modern Healthcare, the continuing resolution that will keep the federal government open for six months beginning Sept. 30 does not include adjustments to or repeal of the SGR (nor does it include Medicare hospital supplemental payment extensions).
In a press release, Senate Majority Leader Harry Reid (D-Nev.) said the continuing resolution agreement will fund the federal government at $1.047 trillion. House Speaker John Boehner (R-Ohio) said in a statement that lawmakers will work on the details of the legislation during August and it will come up for vote in September.
