The Committee on Energy and Commerce has released draft legislation to repeal the SGR and implement new Medicare physician payment updates based on performance under an expanded PQRS program.  In addition, the draft provides for the development of alternative payment models as an alternative to quality reporting requirements.  The bill provides for an initial five years of positive updates at 0.5% per year.  Beginning in 2019, physicians would have the opportunity to earn an additional 1% for successful participation in an expanded PQRS program.  Physicians who score poorly would be subject to cut of 1% (net -0.5%).

While the draft represents significant progress from previous versions of the legislation, there is still much work that remains.  The committee views the bill as a work in progress and continues to solicit comments and suggestions from the physician community has they have throughout this process.  The AMA is examining several areas of concern and will continue to dialogue the committee members and staff as we work to bring the legislation into line with our previously stated principles.