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Monday, June 16, 2014

Health Care

Econ Comments & Analysis                                                                                            
CRS | Medicare Physician Payment Updates and the Sustainable Growth Rate (SGR) System
The Sustainable Growth Rate (SGR) is the statutory method for determining the annual updates to the Medicare physician fee schedule (MPFS). Under the SGR formula, if expenditures over a period are less than the cumulative spending target for the period, the annual update is increased. However, if spending exceeds the cumulative spending target over a certain period, future updates are reduced to bring spending back in line with the target.