Obama signs SGR extension

By AuntMinnie.com staff writers

December 1, 2010 -- On Tuesday, President Barack Obama signed legislation that temporarily halts the 23% cut in physician payments under the sustainable growth rate (SGR) formula that had been scheduled to take effect on December 1.

The Physician Payment and Therapy Relief Act of 2010 will extend the existing 2.2% update to physician payments and delay a 21% cut from the original deadline of November 30 until December 31.

The act will provide a path to both a short- and longer-term solution to the broken Medicare Physician Fee Schedule (MPFS); Finance Committee Chairman Sen. Harry Reid (D-NV) and ranking member Sen. Chuck Grassley (R-IA) plan to pursue a yearlong solution to the formula that could be put into place before the month-long patch expires.