September 2005 | Vol. 23, No. 9

Representative Nancy Johnson Introduces House Bill to Overhaul Medicare's Payment System for Physicians

According to the CongressDaily PM online newsletter, House Ways and Means Health Subcommittee Chairwoman Nancy Johnson (R-CT) introduced a bill in the House of Representatives on July 28 to overhaul Medicare's payment system for physicians to reward higher quality care, and she hinted it could become part of this fall's budget reconciliation package. Rep. Johnson's measure would repeal the "sustainable growth rate" (SGR) system that will subject physicians to an estimated 4.3 pay cut next year. That repeal, according to CongressDaily PM, could cost as much as $183 billion over the next decade. Including the change in a reconciliation package might open other parts of the Medicare program, which the Bush Administration and GOP leaders want to avoid during the delicate implementation period for Medicare's drug benefit. Both House and Senate version of a physician "pay-for-performance" bill would guarantee physicians increases each year, but with larger increases for physicians who meet quality targets or show improvement.