The SGR is problematic because it requires intervention from Congress every year to stop a major pay cut to Medicare providers.
Lawmakers have doubled down on their effort to reform the system since the Congressional Budget Office unexpectedly slashed its cost estimate for repealing the SGR by more than $100 billion.
The proposal from Upton and his Ways and Means panel counterpart, Rep. Dave Camp (R-Mich.), would move Medicare away from its fee-for-service payment model by working to reward doctors for quality and efficiency.
Providers would not be required to participate in alternative payment models, however, a point of criticism for some stakeholders.
Leaders have expressed optimism that a more permanent fix will come this year.