Rep. Lois Capps, D-Santa Barbara, voted Thursday to support House Resolution 2, the Medicare and CHIP Reauthorization Act (MACRA), a bipartisan bill that repeals and replaces the flawed “sustainable growth rate” (SGR) provider reimbursement system that has created instability in the Medicare provider network for years.


Currently, the Medicare SGR formula is used to determine Medicare payments to physicians. The formula has called for across the board reductions in physician payment rates since 2002, which Congress has repeatedly delayed for more than 10 years, resulting in uncertainty and instability among providers and beneficiaries. Without passage of the bill, Medicare physician payment rates would be reduced by nearly 24 percent on April 1 under the SGR.

As a senior member of the Health Subcommittee on the House Energy and Commerce Committee, Capps has been a leader on addressing this complicated issue for many years.

“It has been a priority of mine to repeal and replace the flawed SGR formula for Medicare physician payments since my first day in office, so I am proud to vote for a bipartisan compromise that does just that,” Capps said. “Today is a significant step forward in strengthening Medicare and improving the quality of care for Central Coast seniors. This bill is a true compromise, and while I still have reservations about some aspects of the bill, I am pleased that we as a Congress have finally come together in a bipartisan way to move past this flawed policy and better position Medicare for the future.”

H.R. 2 replaces the broken SGR formula and transition Medicare away from a volume-based system toward one that rewards value, ensures the accuracy of payments, and improves the quality of care. In addition to fixing the broken reimbursement system, the bipartisan agreement will also maintain critical funding for health care for low-income children, families and seniors. It includes a funding extension for community health centers, which will ensure that more than 7 million low-income patients have access to health care.

— Chris Meagher is a press secretary for Rep. Lois Capps.