Rep. Trott: “Bipartisan Agreement Provides Security for Our Seniors”

WASHINGTON, DC:  U.S. Representative Dave Trott (MI-11) today released the following statement after voting in support of bipartisan legislation to reform the payment system for Medicare, known as the “Sustainable Growth Rate” (SGR):

“This bipartisan agreement provides seniors in Southeast Michigan the healthcare security they deserve and helps strengthen Medicare.  For too many years, Washington has implemented only short-term fixes and continued to delay the problem further. Having spent my career building a business, I know that delaying problems only makes things worse and long-term solutions are the best option—and that’s why I see this patient-centered, lasting reform as good news for Michigan’s seniors, America’s taxpayers, and the future of Medicare.”

Background:

In 1997, Congress attempted to cap Medicare costs by connecting doctor payments to a payment formula known in the federal government as the “sustainable growth rate.” As the law was written, if Medicare spent more than the cap in one year, it would be required to compensate by cutting doctor payments in the following year. Despite this effort, Medicare costs continued to increase and as automatic payment cuts emerged, Congress passed 17 short-term fixes to postpone them. The bipartisan legislation, supported by Rep. Trott, repeals the SGR formula and replaces it with a stable payment system that protects healthcare for seniors and strengthens Medicare, without raising taxes on the American people.   

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