It appears that a repeal for Medicare's sustainable growth rate formula may be closer than ever. On May 7, the congressional Committee on Ways and Means held a hearing on Medicare physician payment reform during which a bipartisan group of members expressed support for replacing the SGR this year.

The Committee on Ways and Means and the Committee on Energy and Commerce released draft concepts for replacing the SGR earlier this year, which are in line with AMA recommendations to begin with a period of stability and then move to a model that promotes quality, efficiency and value. AMA reports that the committees are making progress, now working with draft legislative language. They anticipate the drafts will be available later this summer.

On May 10, Senate Finance Committee Chairman Max Baucus and ranking member Orrin Hatch wrote to the health care provider community expressing that repeal of the SGR remains a top priority for the committee. While they expressed their support for the identification of alternative models for the future, they recognized that most physicians will continue to be paid under a fee-for-service arrangement for a period of time. Sens. Baucus and Hatch are soliciting recommendations that affect the FFS program. The request focuses on the validity of resource inputs in determining service prices, volume control, and how best to incentivize physicians to prepare to engage in alternative payment models.

AMA reports that they will participate in providing feedback to the committee to continue encouraging progress on eliminating the SGR. Click here to read the Baucus/Hatch letter.

Starting in 2014, some physicians who fail to prescribe electronically will be subject to a 2 percent Medicare payment penalty. The penalty will be applied to individual eligible professionals or group practices participating in the Electronic Prescribing Group Practice Reporting Option (GPRO) who have not successfully submitted the target number of e-prescriptions based on their number of eligible providers.

There is one more reporting period during which individuals and groups can meet the reporting requirements and avoid the 2014 penalty: Jan. 1 - June 30, 2013. Note that those who successfully e-prescribed in 2012 do not need to meet this reporting requirement in 2013. Other exclusions can be found in the Electronic Prescribing (eRx) Incentive Program: 2014 Payment Adjustment Fact Sheet.

Physicians also can apply for hardship exemptions, which include: practicing in a rural area without sufficient high-speed Internet access; and being barred by local, state, or federal law from e-prescribing. The deadline for hardship exemption applications is also June 30. Click here to submit a hardship exemption.

The Colorado ICD-10 Training Coalition will hold the next webinar in the 2013 training series on Tuesday, May 28, 2013, 12 - 1 p.m. MDT. The webinar will continue the discussion from last month, taking the information a practice administrator volunteer gathered on the impact the ICD-10 transition is going to have on her practice and creating a task list. By organizing this information, the group is entering Project Planning Phase 1 and putting more specificity around the areas of impact in order to develop a timeline to meet the Oct. 1, 2014 deadline.

Join us as we continue down the transition pathway. Click here to register today for the May 28 webinar. Missed the previous webinars? No problem. View archived versions on the coalition's website, www.cms.org/icd-10.

Make plans to participate in a free webinar on the final HIPAA omnibus rule, which makes a number of changes including modifying the HIPAA Privacy and Security Rules passed under the HITECH Act. The Colorado Medical Society will present the hour-and-a-half event on Monday, June 3, starting at 6 p.m. It's part of CMS' Practice Evolution Series and will instruct physicians and their practice teams on what they need to do to meet the strict patient privacy and data security requirements.

Don't be left in the dark on the details of this critical rule and how it will impact your practice. Plan on attending an engaging and informative webinar with David Ginsberg, a leading authority in HIPAA privacy and security compliance and meaningful use. Click here to register.

It can be challenging to receive fair payments for services provided to patients who have health insurance from a payer with which a physician practice has not contracted. The American Medical Association provides resources to equip physician practices with the knowledge and tools needed to navigate these challenges and ensure fair payment is received.

Click here to go to the Out of Networks Payments page of AMA's website and view a variety of practice management resources on this issue.

This is the latest tip in the AMA Practice Management Center's "Prescription for a healthier practice" series.