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Congressman Randy Hultgren

Representing the 14th District of ILLINOIS

Fix to Outdated Medicare Payment Formula Passes House

Mar 14, 2014
In The News


Washington, DC – U.S. Representative Randy Hultgren (IL-14) today supported the passage of legislation which would implement a long-term fix to the formula that reimburses physicians who serve patients on Medicare. The current system is based on the Sustainable Growth Rate (SGR) formula which was enacted in 1997 but has failed to work. Physicians who provide care to Medicare patients face a 24 percent cut in Medicare payments on April 1, 2014 which could lead to a drop in providing care to patients. H.R. 4015, the SGR Repeal and Medicare Provider Payment Modernization Act, would replace the SGR with a sustainable reimbursement system.

Previously, Rep. Hultgren joined a bipartisan initiative urging House Speaker John Boehner and House Democratic Leader Nancy Pelosi to pass fiscally responsible reforms to the Medicare physician payment system. The letter is available at

“As health care costs rise, it has become obvious the current formula for reimbursing doctors who treat Medicare patients has become outdated, unrealistic and unsustainable,” said Rep. Hultgren. “It’s unacceptable that physicians in Illinois and nationwide have to budget for the future unsure whether or not they will be repaid for their services. We are already facing a serious doctor shortage in this country and our seniors cannot afford for more doctors to call it quits.

“I am pleased the House voted to provide stability, predictability and sustainability within our Medicare program. Patients need to know doctors will continue to provide for them, and doctors need to know they will get paid for it. This alternative formula will control costs, pay doctors fairly and maintain quality services for Medicare patients.”


Link to article: Fix to Outdated Medicare Payment Formula Passes House