Yesterday, the House Ways and Means and Senate Finance Committees released a draft legislative proposal to eliminate the Medicare Sustainable Growth Rate (SGR) formula. The proposal would replace the SGR formula with a reformed fee-for-service (FFS) payment system which focuses on value over volume and encourages providers to take advantage of alternative payment models (APMs). The revised FFS system would freeze current payment levels for ten years, but allow individual providers earn performance-based incentive programs. After 2023, providers participating in advanced APMs would receive annual updates of two percent, while other providers would receive one percent.
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