tci Medicare Compliance & Reimbursement - 2005 Issue 30

Pay-for-Performance: New House Bill Would Repeal Update Formula

Republicans, Democrats agree upcoming cuts are unacceptable. Instead of seven lean years starting next year, physicians could receive guaranteed pay increases from Medicare, if one pending bill becomes law.Rep. Nancy Johnson (R-CT), chair of the House Ways and Means Health Subcommittee, is drafting a bill that would repeal the Sustainable Growth Rate formula which calls for cuts of nearly five percent over the next seven years. It also would require pay for performance or "value-based purchasing."Rep. Johnson's staff showed a draft of the bill to physician organizations and other advocates last week, and a final version may...

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