The Medicare Payment Advisory Commission (MedPAC) today renewed its controversial recommendation that Congress permanently repeal the sustainable growth rate (SGR) formula, using cuts to specialists' pay to fund the repeal. The SGR is used to establish Medicare provider pay rates. MedPAC's recommendation comes as members of a U.S. House and Senate conference committee begin debating ways to pay for the Middle Class Tax Relief and Job Creation Act of 2011, which includes repeal of the SGR and extends payroll-tax cuts and unemployment insurance. Physicians, hospitals and other Medicare providers are opposed to the MedPAC funding recommendation as they would be responsible for much of the cost to repeal the SGR. MedPAC reiterated its support for cutting pay to specialists 17 percent over three years, then freezing reimbursement for seven years.

Unless the committee comes to an agreement on the legislation, physicians are confronted with a 27 percent Medicare pay cut on March 1. While medicine continues to advocate for permanent repeal of the SGR formula, Senate Democratic leaders have indicated that a temporary repeal through 2012 is likely. House leaders, however, are pursuing a two-year fix and appointed key physician caucus members to the conference committee, including Academy member Rep. Nan Hayworth, MD, R-N.Y., and Rep. Tom Price, MD, R-Ga.

Ophthalmologists last year sent more than 8,500 letters urging members of Congress to fix Medicare physician pay. FSO has the tools inplace to faciliate communications with your representatives and senators. Click here to send a letter.