House Passes H.R. 3961
Nov. 19, 2009

Here's your regular update on efforts by the American Medical  
Association (AMA) to work with lawmakers in reforming the nation's  
health care system in a way that provides quality, affordable health  
care for all.

House passes H.R. 3961 legislation to permanently repeal the SGR
By a vote of 243-183 today, the U.S. House of Representatives passed  
H.R. 3961, a bill that repeals the current Medicare physician payment  
formula, known as the sustainable growth rate (SGR), and replaces it  
with a new framework. Michael Burgess, MD, (R-Texas), a former AMA  
alternate delegate was the sole Republican to vote for final passage.

This legislation would replace the SGR with a new formula that creates  
two updates: GDP +2 for Evaluation and Management services and GDP + 1  
for other services. Additional technical changes will avoid the  
accumulation or compounding of debt that occurred with the SGR formula.

House Speaker Nancy Pelosi (D-Calif.), House Majority Leader Steny  
Hoyer (D-Md.), House Committee on Ways and Means Chairman Charles  
Rangel (D-N.Y.), House Ways and Means Health Subcommittee Chairman  
Pete Stark (D-Calif.), House Committee on Energy and Commerce Chairman  
Henry Waxman (D-Calif.), Rep. Frank Pallone (D-N.J.), the bill's  
sponsor Rep. John Dingell (D-Mich.), and the Obama Administration were  
strong advocates for passage of H.R. 3961.

House Republican leadership offered a last-minute alternative that  
would have provided for 2 percent updates over the next four years,  
reverting back to the SGR and steep cuts. Also, it would have offset  
the cost with medical liability reforms modeled after California and  
Texas laws. The AMA opposed the motion to recommit because we do not  
support any temporary "patches" for the SGR. A permanent repeal is  
long overdue. The motion to recommit with medical liability reform  
provisions was ruled non-germane. A second GOP alternative providing  
for a two-year "patch" was defeated by a vote of 177-253.

The battle now shifts back to the Senate. While action to permanently  
repeal the SGR was blocked in the Senate last month, the Obama  
Administration and several senators support a permanent replacement of  
the SGR formula. The health system reform bill released by Senate  
Majority Leader Harry Reid (D-Nev.) provides for a one-year reprieve  
with a steeper cut in 2011. The AMA does not support temporary patches  
that further grow the problem.

No one expects Congress to allow the 21 percent cut scheduled for Jan.  
1 to occur. We regret that Congress has deferred action until the  
"eleventh hour." The AMA will redouble our efforts in the Senate and  
with the Obama Administration to achieve a permanent solution.


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