Sen. Paul proposes permanent 'doc fix,' repeal of 2010 healthcare subsidies

Sen. Rand Paul (R-Ky.) on Monday proposed legislation that would eliminate the sustainable growth rate (SGR) that governs the reimbursement rate for Medicare physicians, and replace it with a simple, annual cost-of-living adjustment for these doctors.

The Access to Physicians in Medicare Act, S. 3337, would end what has become a periodic process in Congress of avoiding scheduled cuts to reimbursements for Medicare physicians. This has required passage of so-called "doc fix" legislation to delay these cuts under the current SGR formula.

Instead, it would set up a process under which reimbursement rates could increase slowly each year, capped at 3 percent, based on a cost-of-living increase similar to the one used to calculate increases in Social Security benefits. Paul said this change would remove much of the current uncertainty surrounding the reimbursement rate, which, if cut, could lead to a significant drop in access to medical care.

"As an eye surgeon, many of my patients are seniors, and many of those seniors are Medicare recipients," Paul said. "Medicare, in its constant quest to save money, cuts physician reimbursement and in turn puts America's seniors at risk of losing their access to quality healthcare. I know the value of quality care, and I want to ensure our nation's seniors continue to get it."

Paul said his bill would prevent a cut of about 30 percent to Medicare reimbursements next year, which represents cuts due under the current formula that have been avoided each year. He also said he would pay for this change by repealing expanded healthcare subsidies under the 2010 healthcare law.

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