Baucus: Permanent SGR fix ‘not really part of health reform'

The final ingredient of the health reform soup was unveiled this morning, in the form of the first official draft version of the Senate Finance Committee's reform bill. Here's the main takeaway: it's got a one-year, 0.5% patch to temporarily stall the 21% cut, but makes no mention of a permanent fix to the sustainable growth rate (SGR) formula used to determine your Medicare payments.

When grilled on this point during an afternoon press conference, Sen. Max Baucus (D-Mont.), chairman of the Finance Committee, said he doesn't really feel a permanent SGR fix is part of health reform. But Congress definitely "will address it," he insisted. It's worth noting, once again, that the House's draft reform bill does contain a permanent SGR fix.

Could it be that Baucus didn't want a permanent SGR fix -- estimated to cost some $239 billion in the House bill -- in his committee's bill because it'd raise the cost above the politically taboo $1 trillion mark? Fiscal conservatives of all stripes might then feel compelled to scream bloody murder.

We'll have a more in-depth analysis of the Finance Committee draft legislation in the next issue of Part B News. For now, you can read the full draft bill in PDF format in our Library.