Hatch Praises Plan to Permanently Repeal SGR

In a speech on the Senate floor, Utah Senator Says, “For years, the idea of bipartisan Medicare reform seemed, at best, farfetched. President Obama and his allies here in Congress have stated repeatedly that, before they’d even consider changes to our safety-net programs, Republicans would have to agree to massive tax hikes. But, here we are, just one Senate vote away from enacting meaningful and bipartisan Medicare reforms into law.”

WASHINGTON – In a speech today, Finance Committee Chairman Orrin Hatch (R-Utah) praised the bipartisan bill that would permanently repeal and replace the Medicare Sustainable Growth Rate (SGR), also known as the “Doc Fix”, with an improved payment system based on legislation that was advanced by the Finance Committee in 2013.

“While many critics deemed our efforts a lost cause, we introduced our bill in late 2013 and got it reported out of the Finance Committee on a voice vote. That same legislation formed the basis of the SGR bill that passed overwhelmingly in the House – with 392 votes – at the end of March. Now the bill is before the Senate. It is my hope that we’ll act quickly to pass this bipartisan, bicameral legislation and send it to the President’s desk as soon as possible,” said Hatch.

The complete speech, as prepared for delivery, is below:

Mr. President, I want to take a few minutes to talk once again about the ongoing effort here in Congress to replace the Medicare Sustainable Growth Rate, or SGR, formula.

As we all know, SGR has been a problem pretty much since its inception. Members of both parties have grown tired of passing temporary SGR patches that have usually been cobbled together at the last minute behind closed doors.

This constant, seemingly unending cycle has only grown more tiresome as the years have gone by. That’s why, a little over two years ago, a group of leaders from both the House and Senate set out to fix this problem once and for all.

I was part of this effort, Mr. President, and I was joined on the Senate side by former Finance Committee Chairman Max Baucus. Together, Senator Baucus and I worked with the leaders on the House Energy and Commerce and Ways and Means Committees to craft legislation that would repeal and replace the SGR with an improved payment system that rewards quality, efficiency, and innovation.

While many critics deemed our efforts a lost cause, we introduced our bill in late 2013 and got it reported out of the Finance Committee on a voice vote. That same legislation formed the basis of the SGR bill that passed overwhelmingly in the House – with 392 votes – at the end of March.

Now the bill is before the Senate. It is my hope that we’ll act quickly to pass this bipartisan, bicameral legislation and send it to the President’s desk as soon as possible.

This SGR bill is historic for a number of reasons.

First of all, it demonstrates what Congress is truly capable of when members work together. While that type of cooperation used to be commonplace around here, it has, in recent years, been in short supply.

The bill also represents a step forward in the effort to reform our nation’s entitlement programs. The bill contains bipartisan reforms to the Medicare program – and it’s not limited to fixing the broken SGR system.

To go along with the permanent SGR fix, the bill includes a meaningful down payment on Medicare reform, without any accompanying tax hikes. These reforms include a limitation on so-called Medigap first-dollar coverage, more robust means testing for Medicare Parts B and D, and program integrity provisions that will strengthen Medicare’s ability to fight fraud.

I’m aware that these aren’t transformative reforms and that much more work will be necessary to put Medicare – not to mention our other entitlement programs – on a more sustainable trajectory. However, any Senators who, like me, have been clamoring for entitlement reform should welcome these changes.

After all, for years, the idea of bipartisan Medicare reform seemed, at best, farfetched. President Obama and his allies here in Congress have stated repeatedly that, before they’d even consider changes to our safety-net programs, Republicans would have to agree to massive tax hikes. But, here we are, just one Senate vote away from enacting meaningful and bipartisan Medicare reforms into law.

Of course, as I said last month before the House vote, this bill is not perfect. Anyone who is determined to vote no could likely dig through the bill and find a reason to do so. I have my own thoughts as to how I’d like to improve the bill.

But, let’s be honest. While I’ve only been in the Senate for 38 years or so, I don’t remember voting on many perfect bills, particular not on subject matter this complex and under a divided government.

So, while I understand the impulse that some may have to hold out for a better, more ideal solution to the SGR problem, I think it would be a grave mistake to pass up this bipartisan opportunity we have before us now.

As I see it, we have two options.

We can hold out for a better bill, one that satisfies every demand and subject ourselves to many more years of the last-minute, time-consuming SGR patches that are loathed by everyone in Congress and the health care industry.

Or we can pass the bipartisan, bicameral bill we have before us now, fixing the SGR problem once and for all and setting the stage for future entitlement reform.

It should be pretty clear where I stand, Mr. President.

This is a good bill. And, it’s coming at the right time.

I want to once again commend the leaders in the House – from both parties – that worked so hard to reach a deal on this legislation and to pass it with such an overwhelming consensus. I know it wasn’t easy.

It is now up to us here in the Senate.

Let’s get this done, Mr. President. I hope all of my colleagues will join me in supporting the SGR bill.

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