Senate paves way for Medicare SGR fix

29 January 2010

On Jan. 28, the U.S. Senate took action that helps increase the likelihood of passage of a Medicare sustainable growth rate (SGR) bill in the near term. The action raised the federal debt limit and reinstituted rules that require that any spending or tax cuts would have to be offset by corresponding spending cuts or tax increases.

A limited exemption to this rule was made for part of the cost of fixing the SGR formula. This action means that a significant portion of the cost of a SGR fix would not be required to be offset by other revenue or cuts. The House is expected to respond to the Senate action the week of Feb. 1.

Congress will still need to enact separate legislation to stop the SGR cuts prior to March 1, 2010. MSV continues to reach out to members of the Virginia delegation, especially Sens. Mark Warner and Jim Webb, to insist that Congress pass legislation that will permanently repeal the SGR.