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The “Doc Fix” Dilemma Calls for Immediate Medicare Reforms

Once again, Congress is scrambling to stop a scheduled 27 percent payment cut to physicians who serve Medicare patients. This frequent exercise serves as a perfect example for the need to move Medicare away from its current price control model toward a market-based, premium support model. Congress should take immediate action to link any “fix” with structural Medicare policy reforms.

The “Sustainable Growth Rate” (SGR) is in no way a sustainable long-term solution for Medicare. This complex government formula sets payments to physicians for providing Medicare services. When enacted as part of the Balanced Budget Act of 1997, these cuts (on paper) were designed to help Congress meet its balanced budget targets—but the cuts turned out to be temporary.  (Read the rest on The Foundry…)

Tags: doc fix, Medicare reform, premium support system, rationing care