MedPAC approves draft proposal to junk Medicare's physician pay formula

The MedPAC plan, which relies on cuts to provider reimbursements to offset its proposal, has drawn opposition from physician groups and other provider organizations, which argue the approach would impact patients' access to care.

CQ HealthBeat: MedPAC Approves Physician Payment Plan, Overlooking Concerns About Offsets
Despite overwhelming provider opposition, the Medicare Payment Advisory Commission voted 15-2 to recommend a draft proposal Thursday to junk the physician payment formula that has caused problems for a decade and offset the costs to fix it with other Medicare cuts. Even the American Medical Association (AMA), whose top priority is to eradicate the flawed formula, opposes MedPAC's proposed fix. "Offsetting part of the cost of repeal through drastic cuts and long-term freezes to physicians falls far short of what is needed to preserve patients' access to care," AMA President Peter W. Carmel said in a written statement (Adams, 10/6).

Modern Healthcare: MedPAC Offers Path to SGR Repeal
Ten years after first recommending that Congress replace Medicare's sustainable growth-rate formula, a divided Medicare Payment Advisory Commission suggested ways to pay for such a repeal. The proposal, approved 15-2, would repeal the SGR, cut and then freeze most physician fees and cut a variety of other provider payments to cover the estimated $200 billion cost (Daly, 10/6).