Senate Votes 92-8 to Repeal SGR

April 15, 2015—The United States Senate voted 92-8 for the passage of H.R. 2, the Medicare Access and CHIP Reauthorization Act of 2015. H.R. 2 is a bill to amend Title XVIII of the Social Security Act to repeal the Medicare sustainable growth rate (SGR) and strengthen Medicare access by improving physician payments and making other improvements, to reauthorize the Children's Health Insurance Program (CHIP), and for other purposes. On March 26, the bill was passed in the United States House of Representatives by a 392-37 vote. The bill now goes to President Obama for his signature to become law.

The bill’s sponsor in the Senate, Finance Committee Chairman Orrin Hatch (R-Utah), praised the passage of the bipartisan bill that permanently repeals and replaces the Medicare SGR with an improved payment system based on legislation that was advanced by the Finance Committee in 2013. In a statement issued by his office, Sen. Hatch commented, “The passage of this historic bipartisan bill is a product of more than 2 years of hard work on both sides of the Capitol and represents a long-overdue step forward in reforming our nation’s entitlement programs. With this bill, we repeal and replace SGR with an improved payment system that rewards quality, efficiency, and innovation so that seniors and doctors alike will no longer have to worry about an annual crisis threatening Medicare.  This bill represents what is possible when members of Congress work together in good faith to accomplish results for the American people, and I am hopeful this is the start of many more bipartisan solutions to come.” 

Senate Finance Committee Ranking Member Ron Wyden (D-Oregon) also praised the Senate’s approval of the legislation. He stated, “This is a significant and hard-won achievement that will ensure better quality health care and certainty for millions of seniors and children. By its actions today, the Senate in one fell swoop abolished Medicare’s broken SGR payment formula and replaced it with a better and permanent system for paying physicians and providers. And we provided health security to millions of vulnerable children by extending CHIP.”

Sen. Wyden added, “This is a momentous day, and fittingly, it comes as we celebrate Medicare’s 50th anniversary this year. Along with others, I have worked for many years to put the flawed SGR in the junk bin of history and move to a system that rewards value and more coordinated, high-quality care. Today, finally, we have reached that point; we are crossing the victory line, and we all are better off.”

In his announcement, Sen. Wyden outlined the bill’s significant provisions:

• It repeals the SGR and provides stability and 5 years of payment updates for physicians and providers while focusing payments on the quality, value, and accountability of care providers rather than simply the number of procedures.
• It extends CHIP, which provides comprehensive, affordable health care to 8 million children nationwide, for 2 years.
• It removes the imminent threat of “draconian” cuts to Medicare providers and ensures a 5-year period of annual updates of 0.5% to transition to the new system.
• It incentivizes care coordination efforts for patients with chronic care needs.
• It extends the Maternal, Infant, and Early Childhood Home Visiting program, which has the potential to sharply reduce child abuse and neglect while offering assistance that improves the lives of both parents and children.
• It provides a 2-year extension of Secure Rural Schools.

The American Medical Association’s (AMA) Chief Executive Officer and Executive Vice President, James L. Madara, commented in a statement issued by the AMA, “Physicians across the country join the AMA in celebrating the US Senate's vote tonight to pass Medicare delivery and payment reforms that will help our nation's seniors and improve the health of the nation.

“Passage of this historic legislation finally brings an end to an era of uncertainty for Medicare beneficiaries and their physicians—facilitating the implementation of innovative care models that will improve care quality and lower costs. Patients will be able to get the care they need and deserve.

“In addition to eliminating the flawed SGR formula, we applaud our policymakers for ensuring access to care for children, low-income individuals, and families by extending funds for CHIP and community health centers.

“On behalf of our patients, America's physicians thank the US House of Representatives and the US Senate for their bipartisan and bicameral successful work to build the stable and sustainable Medicare program that will secure high-quality, cost-effective health care.”