Sustainable Growth Rate system

Sustainable Growth Rate system

A system which replaced the Medicare Volume Performance Standard (MVPS) as the mechanism for ensuring Medicare physician spending does not exceed expenditure targets. The SGR system uses a targeted growth rate based on gross domestic product growth, price changes, and changes in Medicare enrollment and benefits.

The Medicare Economic Index (MEI) is the baseline for each year’s payment update calculation, and used in the target calculation to determine the price component of the SGR. Payment updates are equivalent to the MEI multiplied by an “adjustment factor”, which reflects how spending compares to the SGR targets.
References in periodicals archive ?
Doctors are concerned about scheduled cuts due to Medicare's sustainable growth rate system.
This is true in both public and private settings, but perhaps the most salient example is the Sustainable Growth Rate system (SGR).
8% in 2001 to just 3% in 2003, owing to the expiration of provisions in federal Medicare and Medicaid laws and reduced reimbursement for physicians under the Sustainable Growth Rate system, a component in the Medicare reimbursement formula.
Full browser ?