For the last ten years, the SGR has called for cuts in physician payments at the end of the calendar year. This year the magic “cut” number is 27%. The cut never comes because politicians fear doctors will abandon Medicare. Adjustments are always made. The can is kicked down the road until next year.
This is basically the philosophy of managed care and government experts. If you can rationalize or ratio money for doctors, physicians will dance to the payers’ tunes. Costs will be reined in.
Tweet: The SGR (Sustainable Growth Rate) Formula, which annually calls for dramatic cuts in physician Medicare payments, shows no signs of being “fixed” by Washington officials.