Louisville Medicine Volume 62, Issue 4 | Page 11

ANOTHER SGR REPEAL FAILS; WE MUST FACE THE MOUNTAIN AGAIN Gordon R. Tobin, MD AN ACCUMULATING INJUSTICE Intense efforts for over a decade to repeal the faulted Sustainable Growth Rate (SGR) formula for physician services to Medicare patients have repeatedly been denied by Congress. Amidst this, in 2003, Congress opened unfunded cash-flow spigots to investor-owned insurance corporations (Medicare Advantage Plans) and pharmaceutical corporations (no-bid drug benefits), as physicians continued to face scheduled annual payment cuts of about 5.5 percent. To prevent physician exodus from Medicare participation, these cuts were deferred by sequential short-term “patches,” which failed to keep up with practice expense increases and created a massive accumulating physician payment cut (now 24 percent).1 This spring, another repeal effort was denied by partisan Congressional intransigence, and another 1-year “patch” was again required. This cyclical, tragic farce has come to resemble the ancient Greek myth of King Sisyphus, who was fated to push a heavy boulder repeatedly up a steep mountain, only to have it escape before reaching the top and tumble back to the valley floor (Fig. 1). SG RE R PE A L ANOTHER CORRECTION ATTEMPT More than any previous attempt, the efforts of organized medicine and other patient advocates this spring seemed hopeful of reaching the summit of permanent SGR repeal. A path of opportunity appeared in 2013 from the effect of recent decreases in overall health spending on the SGR formula, which lowered the calculated cost of permanent repeal to under half the cost of just two years ago. The American Medical Association and virtually all specialty societies made a united press for SGR repeal.2 A year-long, collaborative effort between key medical stakeholders and Congress resulted in an initial bipartisan, bicameral agreement for SGR repeal before the existing patch expired on April 1. Hopes were high, but the agreement collapsed at the last minute under the forces of partisan, ideological politics, and the boulder rolled back down the mountain once again. POISONOUS POLITICS The events of the collapse are summarized in the June 2014 Bulletin of the American College of Surgeons titled, “The SGR Repeal: How Bad Politics Ruined Sound Policy.3” The effort failed principally due to irresolvable funding disputes between House (H.R. 4015) and Senate (S.2000) versions of the bill, which split over funding sources to offset the repeal cost. A Senate majority selected offset funding drawn from the Oversees Contingency Operating funds, but this lacked the 60 votes necessary to defeat a filibuster. The House majority added a last-minute amendment to fund the bill by a five-year delay (to 2018