Solving the Sustainable Growth Rate Formula Conundrum Continues Steps Toward Cost Savings and Care Improvements

A permanent repeal of the sustainable growth rate (SGR) as part of a package of other payment reforms can lead to lower health care costs and improved care, according to this Health Affairs article by Mathematica senior fellow James Reschovsky. The article assesses last year's attempt by Congress to repeal the SGR which is likely to serve as a model for congressional efforts to repeal the SGR this year. Though fundamental policy change is not easy, the benefits of reform potentially outweigh the costs. This study, which will also appear in the April 2015 issue of Health Affairs, was supported by the Commonwealth Fund.