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FDA Budget, Physician Payments On Tap For Congress In The New Year

This article was originally published in The Pink Sheet Daily

Executive Summary

Congress is on a tight schedule to approve federal appropriations bills for FDA and other agencies. It may also take up comprehensive physician payment reform bills that passed out of committees late in 2013, legislation that could have important implications for the device space. Also to look out for: a changing of the guard in the powerful Senate Finance Committee.

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Senate Finance and House Ways and Means Committee lawmakers issued a revised proposal to overhaul the physician payment sustainable growth rate formula in advance of a Dec. 13 markup. In response to public comment, lawmakers included more restrictions on which imaging services might be subject to appropriate-use criteria requirements.

Draft SGR Repeal Bill Reworks Doc Incentives, Includes Imaging/ECG Appropriateness Criteria

The Senate Finance Committee and House Ways & Means Committee circulated a discussion draft to replace the maligned Medicare sustainable growth rate formula for physician pay with a system that freezes base payments but offers value-based incentives. The bill also calls for mandatory use of appropriateness criteria for advanced imaging and electrocardiogram, and prior authorization in some cases.

Device Tax Delay Doesn’t Make The Cut, But Issue Could Be Exhumed In Budget Conference

Despite being a factor in lawmaker discussions throughout the shutdown, provisions to delay or repeal the device tax did not survive in the final agreement to reopen the federal government and raise the debt ceiling. But the issue appeared to gain more momentum than ever that companies hope can be maintained into upcoming budget conference talks.

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