Response to House Legislative Package to Repeal and Replace the Sustainable Growth Rate (SGR) Formula (H.R. 2)
We are grateful to the House Republican and Democratic leadership for working to develop an SGR compromise. The SGR formula is fundamentally flawed, and permanent changes to the Medicare reimbursement system are long overdue. We support legislative efforts to repeal the SGR and to move Medicare’s volume-based payment system towards one that incentivizes quality, efficiency, and innovation. Yet, H.R. 2 does not represent a fair deal for people with Medicare—expecting too much from beneficiaries in return for too little. The legislation’s treatment of health care “extenders” and its proposed offsets leave significant room for improvement.