The sustainable growth rate: the elephant in the room of deficit reduction |
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Authors: | Perez Ken |
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Institution: | MedeAnalytics, Inc., Emeryville, CA, USA. ken.perez@medeanalytics.com |
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Abstract: | The sustainable growth rate (SGR) is a formulaic approach intended to restrain the growth of Medicare spending on physician services. Permanently replacing the SGR will cost $300 billion to $400 billion. Ten years of congressional overrides have contributed to higher Medicare spending on physician services. The absence of a replacement for the SGR leaves the federal government with a significant budget deficit exposure. |
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