Leaders of the House Energy and Commerce and Ways and Means Committees released another update to draft legislation that would permanently repeal and replace the sustainable growth rate (SGR) formula, which determines Medicare physician reimbursement rates. The revised draft, described as a “legislative framework” would repeal SGR and replace it with a fee for service system which allows providers to develop quality measures that will lead to better and more efficient care. The language also allows providers the option of leaving the fee for service system and opt instead for new ways of delivering care that put an even greater emphasis on quality and efficient care.
However, the bill still does not include details about funding. Leaders in both Committees hope to bring a final version of the legislation to the House floor by the August recess.