Two Weeks Remain for Congress to Address SGR Fix, Other Year-End Business - December 6, 2011

Congress continues to work on outstanding legislative measures before both chambers break for recess on Dec. 16. With the relatively short time period remaining, most suspect that many outstanding bills will be packaged into one, large omnibus bill. However, there is concern that unpopular riders included in the bill could stall the process, and time constraints will hinder a new solution or compromise.

The central focus of the session is fixing the broken sustainable growth rate (SGR) formula to stop a massive Medicare payment reduction to physicians in 2012. Leaders from both parties agree that the SGR must be fixed, but as their proposals show, they have not found common ground on the terms or the offsets to achieve the fix. So far, it seems that Medicaid cuts are not being considered to offset the cost. However, NAPH is advocating that Congress continue to protect Medicaid and other hospital payments throughout the SGR discussions.

In addition, a number of tax breaks, such as the payroll tax cut, are set to expire at the end of this year. Lawmakers are working toward compromise amid controversy regarding whether the tax breaks should be extended and, if so, how to offset costs. Finally, Dec. 16 also marks the end of the temporary spending measure that finances the federal government’s day-to-day operations. Congress will have to negotiate an extension or risk a government shutdown.

NAPH will continue to monitor the activities on Capitol Hill and update members regularly. Look to the NAPH website for additional updates.