The American Academy of Family Physicians AAFP sent the Senate Finance Committee a statement in response to the committee's options paper to reform the health care delivery system (subscribers can read our coverage here). You can download the AAFP's statement by clicking here, but here are two highlights:
1. The AAFP on the sustainable growth rate (SGR): We should not postpone resolving the annually recurring problem of the SGR. It needs to be eliminated not just to provide stability to the Medicare payment system, but also to accurately reflect the actual practice costs that physicians bear. Along with the American Medical Association, we support replacing the SGR with a realistic baseline for physician payments incorporated into the federal budget. We would support transitioning from the SGR to new payment models. This transition should include positive, funded updates.
2. The AAFP on the idea of paying Medicare Advantage plans more for chronic care: Regarding the performance bonus payment for Medicare Advantage plans that provide chronic care management (pp. 40-41), we would note that Medicare Advantage plans already are paid 12 percent more than fee for service. Consequently, the payment structure already provides Medicare Advantage plans with an incentive to offer chronic care management. The bonus proposed in this option should instead be directed to providing additional payment to primary care practices.