What's in the new SGR bill? Alternative payment model bonus; fixed increases

Thursday’s proposed repeal of the Sustainable Growth Rate woul give a 5 percent bonus to providers who receive a significant portion of their revenue from an alternative payment model or patient-centered medical home.

Participants need to receive at least 25 percent of their Medicare revenue through an APM in 2019-2020, according to Democrats in the Ways and Means Committee.

This threshold increases over time and the policy incentivizes participation in private-payer ATMs.

It establishes a Technical Advisory Committee to review and recommend physician-developed APMs based on criteria developed through an open comment process.

The switch from fee-for-service to value-based reimbursement in Thursday’s proposed bipartisan bill moves Medicare payment into the modern realm of healthcare practices.

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