Congress continues debate on SGR

Democratic and Republican leaders in Congress have publicly stated their commitment to take action this year to avert the 27.4 percent cut before Jan 1. As the push for a solution continues, congressional leadership and committees in both chambers are meeting this week to discuss proposals that will address the flawed SGR formula.

It is still unclear how a SGR fix will be paid for. Full repeal of the SGR would cost $289.7 billion, while a two-year extension of current reimbursement rates would cost $38.6 billion, and a one-year extension would cost $20.6 billion, according to the Congressional Budget Office. Senate Democratic leadership has advocated for the use of Overseas Contingency Operations funding, monies from winding down the wars, to pay for a fix. It remains to be seen if this will be widely accepted.

Adding to the political complexity, any SGR fix will most likely be part of a larger legislative package that includes items such as unemployment insurance and payroll tax cut extensions. Congress must reconcile its differences before the House’s target adjournment date of Dec. 16. Lawmakers are currently sparring on how to pay for these programs as well as the SGR.

Source MGMA