Repeal The Medicare SGR

Physicians face yet another devastating 27.4% Medicare payment cut on March 1, 2012. CMA urges Congress to stop the cuts and repeal the SGR once and for all. 

CMA Urges the California Delegation to Sign the Bipartisan Dear Colleague letter being circulated by Representatives Crowley and Benishek.  It asks the “Middle Class Tax Reform” Conference Committee to apply unused military funds from the early troop withdrawals in Iraq and Afghanistan to cover the cost of permanent repeal.  The funding is referred to as the Overseas Contingency Operations (OCO) appropriation. 

Enacting Short-Term Patches is Bad Fiscal Policy.  Five years ago it cost $50 billion to repeal the SGR.  This year it costs over $300 billion and in a few years the cost will double to $600 billion.  Congress needs to stop digging the hole. 

Repealing the SGR Improves Access to Care.  If cuts occur, a CMA Survey found:

72% of California physicians would stop treating new Medicare patients.
55% would reduce the number of existing Medicare patients or quit Medicare altogether.

Creating a Stable Medicare Program Protects the Economy.  Physicians are not just healers.  They employ more than 500,000 Californians and contribute to the tax base (Lewin Group Report, 2011).  Stable Medicare rates help physicians remain in practice, care for patients and prevent further unemployment and economic erosion. 

The OCO funds present a rare opportunity to wipe the $300 billion SGR albatross off the federal ledger and provide stability and security to physicians and patients.  The OCO and the SGR are a paper accounting transaction.

California Physicians and Patients Are Watching Congress.  It’s Time to Fix the SGR.