July 19—Proposed legislation that could replace the current sustainable growth rate (SGR) system and make Medicare physician payment more quality-based was released by the House Energy and Commerce Committee this past week.

According to an announcement by the committee, the proposal incorporates feedback from a range of bipartisan lawmakers and more than 80 stakeholder organizations. The Subcommittee on Health will begin markup on Mon., July 22.

An analysis of the proposal by Bank of America Merrill Lynch states that the bill will replace the SGR formula with a 0.5 percent annual update for physicians during a five-year transition period from 2014 to 2018. The legislation then calls for a new quality-driven payment system effective in 2019. The bill also discusses the development of alternative payment models, medical homes, and payments for chronic care management services, the analysis states.

Publication Date: Friday, July 19, 2013