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Physicians received a 10-month reprieve from a 27 percent cut in Medicare payments scheduled for March 1 under an agreement reached by a House-Senate conference committee. A payment freeze will be in effect through the end of the year.

The agreement is part of a deal to extend a payroll tax cut and added unemployment benefits. Under Medicare's sustainable growth rate formula (SGR), the huge Medicare payment cut was scheduled to go into effect Jan. 1, but was averted by a last-minute extension in late December of current payment rates.

This latest agreement is the 14th short term patch to the SGR in the last 10 years. The AMA will continue to urge Congress to repeal the SGR and stop this terrible cycle that breeds uncertainty for physicians and their practices, and continually threatens seniors access to critical care.

"The House and Senate conference committee agreement averts a 27 percent cut on March 1, but it represents a serious missed opportunity to permanently replace the flawed Medicare physician payment formula and protect access to care for military families and seniors," said AMA President Peter W. Carmel, MD. "People outside of Washington question the logic of spending nearly $20 billion to postpone one cut for a higher cut next year, while increasing the cost of a permanent solution by about another $25 billion.

"Congress had an opportunity to permanently end this problem, which is the sound, fiscally prudent policy choice. We appreciate efforts by members of Congress on both sides of the aisle who publicly supported a framework for a permanent end to this perennial problem. We are deeply disappointed that Congress chose to just do another patch—kicking the can, growing the problem and missing a clear opportunity to protect access to care for patients."

It is important that our Physicians’ Grassroots Network remain engaged on this issue. Your participation in calling and emailing your representatives and senators and urging repeal of the SGR is helping to build the political momentum we need to ultimately end this sorry cycle of short-term patches.

Thank you for all that you do in support of medicine and stay tuned for the latest updates and opportunities to take action on SGR repeal and other key issues.

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