The Congressional Budget Office (CBO) recently released a cost estimate for the Medicare Physician Payment Reform Act of 2009 (H.R.3961), which would repeal the now 21.2 percent Medicare payment rate reduction for physician services in 2010 and restructure the sustainable growth rate (SGR).
According to the CBO, H.R.3961 would increase direct spending by about $210 billion over the 2010-2019 period. The CBO estimates that the $210 billion increase would include an additional $195 billion in Medicare payments to physicians and $64 billion in new spending for Medicare Advantage plans and TRICARE. However, the CBO estimates that such costs would be offset by $49 billion in Part B premiums.
On October 13, 2009, Senator Debbie Stabenow introduced the Medicare Physicians Fairness Act of 2009 (S.1776), which would eliminate the now 21.2 percent Medicare payment rate reduction for physician services in 2010 and sunset the SGR formula. Subsequently, the CBO released a brief letter estimating the effects of S.1776. According to that letter, the CBO believes that S.1776 would increase direct spending by $247 billion over the 2010-2019 period. The U.S. Senate voted 47-53 on a cloture motion for S.1776, which appears to have halted any immediate Senate initiatives to address the SGR formula.
Subscribe to Medicare Update, follow me on Twitter @MedicareUpdate, and become a fan on Facebook.
