What will replace the Sustainable Growth Rate formula?
Kennedy’s legislation doesn’t even mention the sustainable growth rate, but a memo released by the House Committees on Ways and Means, Energy and Commerce, and Education and Labor calls for replacing the “currently flawed” SGR formula that determines physician pay rates. Replace it with what, it doesn’t say. That answer should come later in the process, but I have a feeling that will be one of the most difficult issues to resolve. 2. Will a public plan make it through? The Affordable Health Choices Act calls for new “insurance exchanges” to facilitate universal coverage, in part to avoid the controversy surrounding public plans. Republicans oppose a government-backed insurance plan, and perhaps more importantly, some conservative Democrats want it only as a last resort. What about doctors? Conventional wisdom (and political pundits) says that physicians are opposed to another government payer, but I think opinions are fairly evenly-divided. Perhaps one of the biggest surprises in our H