Alliance of Specialty Medicine Sends SGR Letter to Congress

The Alliance of Specialty Medicine has written a letter to both Houses of Congress asking for a solution to the Medicare Sustainable Growth Rate as part of the "fiscal cliff" negotiations. "Physicians and seniors have waited long enough for Congress to address this significant flaw in our nation's health program," states the letter. "Each year since 2002, the SGR formula has called for substantial reduction in Medicare physician payment rates. In 2002, payment rates were reduced by 5.4 percent. In each subsequent year, Congress has overridden the formula, specifying small increases or payment freezes instead of large cuts. These short-term 'fixes' have served only to exacerbate the problem and continue to undermine physician and beneficiary confidence in the Medicare program."

The letter asks legislators to repeal the payment formula and offers guidance during the creation of a new payment process. Medicare faces a 26.5 percent reimbursement cut next year in addition to a 2 percent sequestration pay cut and penalties related to quality improvement initiatives, according to the letter.

Several organizations signed the letter, including the North American Spine Society, American Association of Neurological Surgeons and Congress of Neurological Surgeons.

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