CHA News Article

Physician Payment Commission Calls for End of SGR, FFS Payments

A report released today by the National Commission on Physician Payment Reform calls for the elimination of both the sustainable growth rate (SGR) and the fee-for-service (FFS) payment model within five years. The independent commission, funded in part by the Robert Wood Johnson Foundation and the California HealthCare Foundation, has recommended a blueprint for transitioning to a blended payment system. In the near term, the commission recommends FFS payments be recalibrated to encourage practices that improve quality and cost effectiveness, while penalizing those that misuse or overuse care. In addition, the commission argues that repealing the SGR should be paid for with savings from the Medicare program as a whole, including both cuts to physician payments and reductions in inappropriate utilization of Medicare services. To read the full report, visit