It’s known as the Sustainable Growth Rate (SGR), and it’s high time it was repealed altogether. Originally passed as part of the Balanced Budget Act of 1997, SGR was Congress’ attempt to pass the buck in making difficult decisions about reigning in Medicare costs. Through this, Congress gave an agency, Centers for Medicare and Medicaid Services (CMS), the responsibility of limiting spending increases to no more than the growth of the GDP.

CMS uses a formula to calculate a reimbursement rate for physician services that will make Medicare expenditures comply with the SGR. The recommendation automatically goes into effect unless Congress overrides it. The calculation has produced a reduced reimbursement rate every year since 2002 – the first year SGR resulted in a cut and the only time SGR has gone into effect.

This time SGR would have reduced physician payments by an astounding 27.1 percent. Already, it is very difficult for seniors to find a physician willing to accept Medicare. Reduce the payment by 27.1 percent and the difficult becomes impossible. Add in the outcry from doctors, and it is no surprise that every time CMS attempts to put the new rate into effect, Congress overrides the decision. And, every time Congress kicks the can down the road, the price tag for letting the SGR go into effect gets higher. Last week, Congress postponed SGR for 10 months so had to pony up $21 billion in cuts from other healthcare spending to “pay” for it.

But, here is the shell game. Because SGR is the law, the Congressional Budget Office (CBO) must assume that it will go into effect when they project the deficit and the debt. This leads the CBO to project spending levels lower than everyone knows will occur, resulting in deficit and debt projections that look billions better than they actually are – more than $300 billion over the next ten years.

Everyone knows that SGR will never go into effect. Using the imaginary savings just gives Congress cover for hiding the real cost of ObamaCare and the real crisis in funding Medicare. After 10 years of kicking the can down the road, it’s time to admit the truth, and for once, be honest with the American people. Repeal the SGR.

-Arlene Wohlgemuth