SGR proposal is gaining support

The American Health Care Association (AHCA) announced its support for the sustainable growth rate (SGR) proposal currently in Congress, joining Leading Age. The proposal seeks to replace the Medicare sustainable growth rate (SGR) formula tied to physician compensation with a payment system that is designed to improve value and return stability to physician payment.

Congress proposes to impose a set of fixed cuts across the healthcare industry for 2018 to reset the baseline and form a solution that will work without annual end-of-year cuts to providers. FY 2018 would be a 1% increase, instead of the typical market basket increase.

The final version on the proposal is expected this week.

To read a summary of the SGR framework, click here.