Message to Congress: Fix Formula Before Pay for Performance

Several such permanent changes have been proposed—all of which are costly. GAO has estimated that removing prescription drugs from the SGR this year—an option favored by some medical organizations—would fall short of providing the immediate fix that physicians want. Fees would continue to decline by about 5% per year from 2006 through 2010, before rendering a positive update in 2011.

The Bush administration does have current authority to remove the drugs from the formula, Bruce Steinwald, GAO's director for health care, economic and payment issues, recently testified at a hearing of the House Ways and Means health subcommittee.

Further, Mark McClellan, M.D., administrator of the Centers for Medicare and Medicaid Services, recently told reporters that his agency is working with the AMA to identify administrative actions to prevent the cuts.

At the very least, Dr. McClellan's response "indicates that the payment issue is sharply on his radar screen," Paul Speidell, government affairs representative with the Medical Group Management Association, told SKIN AND ALLERGY NEWS.