Friday, November 1, 2013

House Ways & Means and Senate Finance Release Permanent Doc Fix Proposal

By AHCA Press Office

On Wednesday, the House Ways and Means and Senate Finance committees released a draft of their proposal to permanently repeal the annual “doc fix” process. In July, the committees asked providers for input as they developed proposals for the doc fix. AHCA was among those that submitted a memo detailing solutions.

The details of the released proposal were largely what many in the long term and post-acute care sector anticipated. The proposal would repeal the current sustainable growth rate (SGR) payment formula and freeze payments to doctors for the next 10 years. Beginning in 2024, doctors who participate in fee for service would see a reduction in payment of one percent while doctors who use an alternative payment method would see a two percent update. The Congressional Budget Office projects a cost of about $150 billion for the proposal.

The outlined proposal did however fail to include concrete information on pay-fors and therapy caps. As the doc fix and related issues are debated in coming weeks, AHCA will continue to
offer solutions and advocate for a therapy cap extension.

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