Health reform debate continues but Senate delays SGR repeal

Senate Democrats were not able to gather necessary votes to permanently repeal Medicare's Sustainable Growth Rate (SGR) which for many years has led to looming cuts in physician payments that expand each year. The issue began to become confused by the media since it has a high price tag of $240 billion but in reality would only prevent a looming pay cut for physicians. However, AARP is now also weighing in to support the repeal of SGR on a permanent basis which could help draw new support and adds new weight to efforts by the AMA. Currently, the Senate Finance health reform bill draft has only a one year fix of SGR.

On a related note, Senate leadership did announce it will allow a limited number of amendments to be introduced which is expected to open the door for Republicans to seek votes on medical malpractice reform and other issues that are considered to be gaps in health reform legislation. It is not clear what other issues will be considered but it appears we have several weeks more of health reform debate in both the Senate and the House.

On the House side, Washington insiders report that the House will likely not vote on health reform until after the elections but before Thanksgiving. However, the House will likely unveil a bill next week and it may include different options related to the controversial public option. We expect the House bill will end up being deficit neutral or better and the cost will be under $900 billion.

Will we have health reform legislation by Thanksgiving? Possible. But I am betting it will be December.