BLOG: Reduced CBO estimate reignites debate over sustainable growth rate repeal

On Feb. 5, the Congressional Budget Office (CBO) reduced its estimate of the cost to freeze Medicare payments under the physician fee schedule (PFS) at current levels by more than $100 billion. Medicare spending under the PFS is driven in large part by the sustainable growth rate (SGR) formula. Under the current formula, the CBO projects that Medicare payments to physicians will be reduced by about 25% percent in January 2014 before increasing by small amounts in subsequent years.







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