President Signs “Doc Fix” Bill Changing the Scope of Medicare

signPresident Obama called reporters to the Rose Garden yesterday, April 16th, to witness the signing of the Medicare Access and CHIP Reauthorization Act of 2015. This bill, also known as the SGR Package, will cost around $214 billion and solve the years long issue of the flawed sustainable growth rate. The president praised the bipartisan efforts of the House of Representatives and the Senate in working together to create a unified Medicare reform.

Some changes to Medicare included in this bill are:

  • Removal of the sustainable growth rate and establishment of a 0.5% yearly increase for five years

  • Income-related premium adjustments resulting in premium increases for higher-earning seniors starting in 2018

  • Limits to first-dollar coverage on Medigap plans by prohibiting policies from paying Part B deductibles starting in 2020

This plan also directs the Secretary of Health and Human Services to form a quality-measurement plan that will translate to a merit-based incentive system. This system will determine increases or decreases in payments to medical professionals based on their performance.

For more information, you can read these related articles on our blog:   If Plan F Doesn’t Work Out, Do You Have a Plan G? ; The SGR Deadline is Upon Us…

Posted in Industry News, Legislative News, Medicare Supplements