--- title: Medical Billing Blog | MBR | medicare cut (2) description: medicare cut | Blog | Medical Billing Resources increases reimbursements, accelerates cash flow and reduces accounts receivable. (2) --- [![](https://www.mbrbilling.com/hs-fs/hubfs/MBR-Images/logo.png?width=340&name=logo.png)](https://www.mbrbilling.com/) - [Home](https://www.mbrbilling.com/) - [Client Login](http://clientlogin.mbrbilling.com/) - [Contact Us](https://www.mbrbilling.com/contact-us) SEARCH # Medical Billing Blog ## [MBR Explains: The Sustainable Growth Rate](https://www.mbrbilling.com/blog/bid/154053/MBR-Explains-The-Sustainable-Growth-Rate) Posted by [Scott Shatzman](https://www.mbrbilling.com/blog/author/scott-shatzman) on Fri, Nov, 01, 2013 @ 10:11 AM - [Tweet](https://twitter.com/share) [![](https://www.mbrbilling.com/hs-fs/file-369340980-jpg/images/sgr-resized-600.jpg) ](https://www.mbrbilling.com/blog/bid/154053/MBR-Explains-The-Sustainable-Growth-Rate) The Medicare Sustainable Growth Rate (SGR) is the current method used by the Centers for Medicare and Medicaid Services (CMS) to control spending by Medicare on physician services, through ensuring that the yearly increase in the expense per Medicare beneficiary does not exceed the growth in GDP.  It was introduced in 1997 as part of the Balanced Budget Act of 1997. And, for the first couple years, it worked relatively well. That is because Medicare expenditures in those years did not exceed the target amount, allowing doctors to receive modest pay increases. But in 2002, the situation changed. Medicare expenditures exceeded the target expenditures set in the previous year, so Congress was required by statute to balance payments to match the target SGR.  Doctors across the nation reacted with contempt as Congress attempted to enact a 4.8% pay cut. Congress eventually relented and passed stopgap legislation to prevent the scheduled cut, thereby temporarily suspending the reduction for a matter of weeks. Weeks then turned into months and months into years, and now physicians face a 26.5% cut under the SGR.  Virtually no one believes Congress will allow the SGR to lower pay by such an amount, but doctors have sent a strong message to lawmakers that the annual ritual of enacting a last minute, transitory solution that only defers the increase to a later date needs to stop. [Read More](https://www.mbrbilling.com/blog/bid/154053/MBR-Explains-The-Sustainable-Growth-Rate) 0 Comments [Click here to read/write comments](https://www.mbrbilling.com/blog/bid/154053/MBR-Explains-The-Sustainable-Growth-Rate#comments-listing) [Previous](https://www.mbrbilling.com/blog/topic/medicare-cut/page/1) [All posts](https://www.mbrbilling.com/blog/all) ### Subscribe via Email [![](https://www.mbrbilling.com/hs-fs/file-16642138-png/images/bg/facebook.png)](https://www.facebook.com/MedBillResources) [![](https://www.mbrbilling.com/hs-fs/file-16650079-png/images/bg/twitter.png)](https://twitter.com/#!/MedBillResource) [![](https://www.mbrbilling.com/hs-fs/file-16643229-png/images/bg/linkedin.png)](http://www.linkedin.com/company/medical-billing-resources) [![](https://www.mbrbilling.com/hs-fs/file-16646680-png/images/bg/rss.png)](https://www.mbrbilling.com/CMS/UI/Modules/BizBlogger/rss.aspx?tabid=484940&moduleid=1043750&maxcount=25&u=107101&t=BBE4D262E126601B3B04C3F46C38B13F) [![New Call-to-Action](https://no-cache.hubspot.com/cta/default/119723/112e1d48-db0d-4713-be81-8744e7438136.png)](https://cta-redirect.hubspot.com/cta/redirect/119723/112e1d48-db0d-4713-be81-8744e7438136) [![Click me](https://no-cache.hubspot.com/cta/default/119723/73857c0b-bb42-4989-9f2b-6f01b79dda8d.png)](https://cta-redirect.hubspot.com/cta/redirect/119723/73857c0b-bb42-4989-9f2b-6f01b79dda8d) [![worksheet](https://no-cache.hubspot.com/cta/default/119723/e4db838f-b08e-4fb6-bce4-c965b078dce1.png)](https://cta-redirect.hubspot.com/cta/redirect/119723/e4db838f-b08e-4fb6-bce4-c965b078dce1)     ### Latest Posts ### Browse by Tag - [$75 million (1)](https://www.mbrbilling.com/blog/topic/75-million) - [2014 (1)](https://www.mbrbilling.com/blog/topic/2014) - [2015 (5)](https://www.mbrbilling.com/blog/topic/2015) - [21st Century Cures Act (1)](https://www.mbrbilling.com/blog/topic/21st-century-cures-act) - [340B drug pricing program (1)](https://www.mbrbilling.com/blog/topic/340b-drug-pricing-program) - [59 modifier (1)](https://www.mbrbilling.com/blog/topic/59-modifier) - [90 day wait period (2)](https://www.mbrbilling.com/blog/topic/90-day-wait-period) - [abuse (2)](https://www.mbrbilling.com/blog/topic/abuse) - [ACA (42)](https://www.mbrbilling.com/blog/topic/aca) - [ACA, Health Law, Repeal, GOP (2)](https://www.mbrbilling.com/blog/topic/aca-health-law-repeal-gop) - [access (1)](https://www.mbrbilling.com/blog/topic/access) - [Affordable Care Act (54)](https://www.mbrbilling.com/blog/topic/affordable-care-act) - [Alternative Payment Model (1)](https://www.mbrbilling.com/blog/topic/alternative-payment-model) - [AMA (6)](https://www.mbrbilling.com/blog/topic/ama) - [Ambulatory Payment Classifications (1)](https://www.mbrbilling.com/blog/topic/ambulatory-payment-classifications) - [annual notice (1)](https://www.mbrbilling.com/blog/topic/annual-notice) - [annual report (1)](https://www.mbrbilling.com/blog/topic/annual-report) - [Anthem (1)](https://www.mbrbilling.com/blog/topic/anthem) - [anti-kickback (1)](https://www.mbrbilling.com/blog/topic/anti-kickback) - [APM (2)](https://www.mbrbilling.com/blog/topic/apm) - [Audits (1)](https://www.mbrbilling.com/blog/topic/audits) - [Balance Billing (1)](https://www.mbrbilling.com/blog/topic/balance-billing) - [Balanced Budget Act (1)](https://www.mbrbilling.com/blog/topic/balanced-budget-act) - [Bankruptcy (1)](https://www.mbrbilling.com/blog/topic/bankruptcy) - [Baucus (1)](https://www.mbrbilling.com/blog/topic/baucus) - [BCBSMI (1)](https://www.mbrbilling.com/blog/topic/bcbsmi) - [Beneficiary Access (1)](https://www.mbrbilling.com/blog/topic/beneficiary-access) - [Bernard Sanders (1)](https://www.mbrbilling.com/blog/topic/bernard-sanders) - [billing (2)](https://www.mbrbilling.com/blog/topic/billing) - [billing, medical billing companies (1)](https://www.mbrbilling.com/blog/topic/billing-medical-billing-companies) - [Blue Cross Blue Shield (1)](https://www.mbrbilling.com/blog/topic/blue-cross-blue-shield) - [Bronze Plans (4)](https://www.mbrbilling.com/blog/topic/bronze-plans) - [budget (3)](https://www.mbrbilling.com/blog/topic/budget) - [bundled payments (2)](https://www.mbrbilling.com/blog/topic/bundled-payments) - [Canceling policies (5)](https://www.mbrbilling.com/blog/topic/canceling-policies) - [Cardiac Rehabilitation Incentive Payment Model (1)](https://www.mbrbilling.com/blog/topic/cardiac-rehabilitation-incentive-payment-model) - [Cardiology Billing (13)](https://www.mbrbilling.com/blog/topic/cardiology-billing) - [CBO (2)](https://www.mbrbilling.com/blog/topic/cbo) - [CEHRT (1)](https://www.mbrbilling.com/blog/topic/cehrt) - [Certified EHR Technologies (2)](https://www.mbrbilling.com/blog/topic/certified-ehr-technologies) - [chart review (1)](https://www.mbrbilling.com/blog/topic/chart-review) - [CHIP (3)](https://www.mbrbilling.com/blog/topic/chip) - [Chronic Care Management (1)](https://www.mbrbilling.com/blog/topic/chronic-care-management) - [Cigna (1)](https://www.mbrbilling.com/blog/topic/cigna) - [claims processing (1)](https://www.mbrbilling.com/blog/topic/claims-processing) - [CMS (49)](https://www.mbrbilling.com/blog/topic/cms) - [CMS requirements (11)](https://www.mbrbilling.com/blog/topic/cms-requirements) - [CMS, Final Rule, Quality Payment Program, Medicare (1)](https://www.mbrbilling.com/blog/topic/cms-final-rule-quality-payment-program-medicare) - [CMS-1500 (1)](https://www.mbrbilling.com/blog/topic/cms-1500) - [co-payment (1)](https://www.mbrbilling.com/blog/topic/co-payment) - [Cobra (1)](https://www.mbrbilling.com/blog/topic/cobra) - [Coburn (1)](https://www.mbrbilling.com/blog/topic/coburn) - [coding (1)](https://www.mbrbilling.com/blog/topic/coding) - [Commonwealth Fund (1)](https://www.mbrbilling.com/blog/topic/commonwealth-fund) - [Compliance (49)](https://www.mbrbilling.com/blog/topic/compliance) - [Comprehensive Care for Joint Replacement (1)](https://www.mbrbilling.com/blog/topic/comprehensive-care-for-joint-replacement) - [congress (5)](https://www.mbrbilling.com/blog/topic/congress) - [Congressional Leadership (1)](https://www.mbrbilling.com/blog/topic/congressional-leadership) - [Consumer costs (1)](https://www.mbrbilling.com/blog/topic/consumer-costs) - [conversion factor (3)](https://www.mbrbilling.com/blog/topic/conversion-factor) - [coronavirus (3)](https://www.mbrbilling.com/blog/topic/coronavirus) - [cost (3)](https://www.mbrbilling.com/blog/topic/cost) - [cost savings (1)](https://www.mbrbilling.com/blog/topic/cost-savings) - [costs (4)](https://www.mbrbilling.com/blog/topic/costs) - [coverage (12)](https://www.mbrbilling.com/blog/topic/coverage) - [covid-19 (3)](https://www.mbrbilling.com/blog/topic/covid-19) - [CPT (1)](https://www.mbrbilling.com/blog/topic/cpt) - [deductible (2)](https://www.mbrbilling.com/blog/topic/deductible) - [Delay (8)](https://www.mbrbilling.com/blog/topic/delay) - [Department of Labor (2)](https://www.mbrbilling.com/blog/topic/department-of-labor) - [Department of Veteran Affairs (1)](https://www.mbrbilling.com/blog/topic/department-of-veteran-affairs) - [Dermatology Billing (11)](https://www.mbrbilling.com/blog/topic/dermatology-billing) - [Detroit (2)](https://www.mbrbilling.com/blog/topic/detroit) - [diagnosis (1)](https://www.mbrbilling.com/blog/topic/diagnosis) - [Dingell (1)](https://www.mbrbilling.com/blog/topic/dingell) - [disclosure (1)](https://www.mbrbilling.com/blog/topic/disclosure) - [Doc Causus (1)](https://www.mbrbilling.com/blog/topic/doc-causus) - [doc fix (1)](https://www.mbrbilling.com/blog/topic/doc-fix) - [Doctors (1)](https://www.mbrbilling.com/blog/topic/doctors) - [documentation (2)](https://www.mbrbilling.com/blog/topic/documentation) - [DOJ (2)](https://www.mbrbilling.com/blog/topic/doj) - [DOL (2)](https://www.mbrbilling.com/blog/topic/dol) - [donut hole (3)](https://www.mbrbilling.com/blog/topic/donut-hole) - [DRG (1)](https://www.mbrbilling.com/blog/topic/drg) - [Drug Benefit (1)](https://www.mbrbilling.com/blog/topic/drug-benefit) - [drug discount (1)](https://www.mbrbilling.com/blog/topic/drug-discount) - [E/M (1)](https://www.mbrbilling.com/blog/topic/e-m) - [Early Retiree Reinsurance Program (1)](https://www.mbrbilling.com/blog/topic/early-retiree-reinsurance-program) - [EDI (1)](https://www.mbrbilling.com/blog/topic/edi) - [efficiency (1)](https://www.mbrbilling.com/blog/topic/efficiency) - [EHR (10)](https://www.mbrbilling.com/blog/topic/ehr) - [EHR Incentive Program (5)](https://www.mbrbilling.com/blog/topic/ehr-incentive-program) - [EHR Payment Adjustments (2)](https://www.mbrbilling.com/blog/topic/ehr-payment-adjustments) - [Electronic Data Interchange (1)](https://www.mbrbilling.com/blog/topic/electronic-data-interchange) - [electronic health records (3)](https://www.mbrbilling.com/blog/topic/electronic-health-records) - [electronic medical records (4)](https://www.mbrbilling.com/blog/topic/electronic-medical-records) - [Eligible Clinicians (1)](https://www.mbrbilling.com/blog/topic/eligible-clinicians) - [Employer Mandate (3)](https://www.mbrbilling.com/blog/topic/employer-mandate) - [EMR (14)](https://www.mbrbilling.com/blog/topic/emr) - [enrollment (4)](https://www.mbrbilling.com/blog/topic/enrollment) - [EP (1)](https://www.mbrbilling.com/blog/topic/ep) - [equity (1)](https://www.mbrbilling.com/blog/topic/equity) - [ERRP (1)](https://www.mbrbilling.com/blog/topic/errp) - [Exemption 6 (1)](https://www.mbrbilling.com/blog/topic/exemption-6) - [family health insurance (1)](https://www.mbrbilling.com/blog/topic/family-health-insurance) - [FDA (1)](https://www.mbrbilling.com/blog/topic/fda) - [federal court (1)](https://www.mbrbilling.com/blog/topic/federal-court) - [fee (1)](https://www.mbrbilling.com/blog/topic/fee) - [fee for service (3)](https://www.mbrbilling.com/blog/topic/fee-for-service) - [final rule (2)](https://www.mbrbilling.com/blog/topic/final-rule) - [final version (1)](https://www.mbrbilling.com/blog/topic/final-version) - [fiscal impact (1)](https://www.mbrbilling.com/blog/topic/fiscal-impact) - [flat rate (1)](https://www.mbrbilling.com/blog/topic/flat-rate) - [FOIA (1)](https://www.mbrbilling.com/blog/topic/foia) - [Fraud (10)](https://www.mbrbilling.com/blog/topic/fraud) - [GAO (2)](https://www.mbrbilling.com/blog/topic/gao) - [Gold Plans (3)](https://www.mbrbilling.com/blog/topic/gold-plans) - [Government shutdown (1)](https://www.mbrbilling.com/blog/topic/government-shutdown) - [Grandfathering (2)](https://www.mbrbilling.com/blog/topic/grandfathering) - [Group Practice Reporting Option (1)](https://www.mbrbilling.com/blog/topic/group-practice-reporting-option) - [GRPO (1)](https://www.mbrbilling.com/blog/topic/grpo) - [GT modifier (2)](https://www.mbrbilling.com/blog/topic/gt-modifier) - [Hardship (1)](https://www.mbrbilling.com/blog/topic/hardship) - [hardship exemption (1)](https://www.mbrbilling.com/blog/topic/hardship-exemption) - [Harkin (1)](https://www.mbrbilling.com/blog/topic/harkin) - [health and human services (4)](https://www.mbrbilling.com/blog/topic/health-and-human-services) - [Health care (3)](https://www.mbrbilling.com/blog/topic/health-care) - [health information exchange (22)](https://www.mbrbilling.com/blog/topic/health-information-exchange) - [Health Insurance (21)](https://www.mbrbilling.com/blog/topic/health-insurance) - [Health Plan (21)](https://www.mbrbilling.com/blog/topic/health-plan) - [health plans (6)](https://www.mbrbilling.com/blog/topic/health-plans) - [health reform (30)](https://www.mbrbilling.com/blog/topic/health-reform) - [Health Savings Accounts (1)](https://www.mbrbilling.com/blog/topic/health-savings-accounts) - [health services (1)](https://www.mbrbilling.com/blog/topic/health-services) - [healthcare (3)](https://www.mbrbilling.com/blog/topic/healthcare) - [healthcare costs (14)](https://www.mbrbilling.com/blog/topic/healthcare-costs) - [healthcare history (6)](https://www.mbrbilling.com/blog/topic/healthcare-history) - [Healthcare.gov (27)](https://www.mbrbilling.com/blog/topic/healthcare-gov) - [Healthy Michigan Plan (1)](https://www.mbrbilling.com/blog/topic/healthy-michigan-plan) - [HHS (9)](https://www.mbrbilling.com/blog/topic/hhs) - [high-deductible (1)](https://www.mbrbilling.com/blog/topic/high-deductible) - [HIPAA (2)](https://www.mbrbilling.com/blog/topic/hipaa) - [HITECH (2)](https://www.mbrbilling.com/blog/topic/hitech) - [home health care (1)](https://www.mbrbilling.com/blog/topic/home-health-care) - [Hospital (4)](https://www.mbrbilling.com/blog/topic/hospital) - [hospital employment (1)](https://www.mbrbilling.com/blog/topic/hospital-employment) - [Hospital Insurance Trust Fund (1)](https://www.mbrbilling.com/blog/topic/hospital-insurance-trust-fund) - [Hospital Value-Based Purchasing Program (1)](https://www.mbrbilling.com/blog/topic/hospital-value-based-purchasing-program) - [House Energy and Commerce Committee (2)](https://www.mbrbilling.com/blog/topic/house-energy-and-commerce-committee) - [House Ways and Means Committee (3)](https://www.mbrbilling.com/blog/topic/house-ways-and-means-committee) - [HSA (1)](https://www.mbrbilling.com/blog/topic/hsa) - [ICD-10 (24)](https://www.mbrbilling.com/blog/topic/icd-10) - [ICD-9 (8)](https://www.mbrbilling.com/blog/topic/icd-9) - [IFR (1)](https://www.mbrbilling.com/blog/topic/ifr) - [IG Report (1)](https://www.mbrbilling.com/blog/topic/ig-report) - [improper payment (1)](https://www.mbrbilling.com/blog/topic/improper-payment) - [improper payments (1)](https://www.mbrbilling.com/blog/topic/improper-payments) - [improved cash flow (1)](https://www.mbrbilling.com/blog/topic/improved-cash-flow) - [improvement (1)](https://www.mbrbilling.com/blog/topic/improvement) - [Incentive payments (1)](https://www.mbrbilling.com/blog/topic/incentive-payments) - [incentives (1)](https://www.mbrbilling.com/blog/topic/incentives) - [Increase Medical Billing Revenue (5)](https://www.mbrbilling.com/blog/topic/increase-medical-billing-revenue) - [Individual Eligible Professional (2)](https://www.mbrbilling.com/blog/topic/individual-eligible-professional) - [Individual Eligible Professionals (1)](https://www.mbrbilling.com/blog/topic/individual-eligible-professionals) - [individual health insurance (16)](https://www.mbrbilling.com/blog/topic/individual-health-insurance) - [individual market (9)](https://www.mbrbilling.com/blog/topic/individual-market) - [Inpatient Rehabilitation Facilities (1)](https://www.mbrbilling.com/blog/topic/inpatient-rehabilitation-facilities) - [insurance (4)](https://www.mbrbilling.com/blog/topic/insurance) - [Insurance company (1)](https://www.mbrbilling.com/blog/topic/insurance-company) - [Interim Final Rule (2)](https://www.mbrbilling.com/blog/topic/interim-final-rule) - [IRS (1)](https://www.mbrbilling.com/blog/topic/irs) - [Kathleen Sebelius (2)](https://www.mbrbilling.com/blog/topic/kathleen-sebelius) - [kickbacks (1)](https://www.mbrbilling.com/blog/topic/kickbacks) - [King v Burwell (1)](https://www.mbrbilling.com/blog/topic/king-v-burwell) - [Laboratory (1)](https://www.mbrbilling.com/blog/topic/laboratory) - [listserv (1)](https://www.mbrbilling.com/blog/topic/listserv) - [local healthcare expenditures (1)](https://www.mbrbilling.com/blog/topic/local-healthcare-expenditures) - [lockbox (1)](https://www.mbrbilling.com/blog/topic/lockbox) - [MACRA (7)](https://www.mbrbilling.com/blog/topic/macra) - [MACRA, Fee for Service, Physician Pay (1)](https://www.mbrbilling.com/blog/topic/macra-fee-for-service-physician-pay) - [MACs (1)](https://www.mbrbilling.com/blog/topic/macs) - [March 31 (1)](https://www.mbrbilling.com/blog/topic/march-31) - [Meaningful Use (11)](https://www.mbrbilling.com/blog/topic/meaningful-use) - [Meaningful Use 2 (7)](https://www.mbrbilling.com/blog/topic/meaningful-use-2) - [Meaningful Use 3 (2)](https://www.mbrbilling.com/blog/topic/meaningful-use-3) - [Medicaid (8)](https://www.mbrbilling.com/blog/topic/medicaid) - [Medicaid expansion (6)](https://www.mbrbilling.com/blog/topic/medicaid-expansion) - [Medical Billing Companies (2)](https://www.mbrbilling.com/blog/topic/medical-billing-companies) - [medical billing compliance (1)](https://www.mbrbilling.com/blog/topic/medical-billing-compliance) - [Medical Billing Fraud (2)](https://www.mbrbilling.com/blog/topic/medical-billing-fraud) - [Medical Billing Services (2)](https://www.mbrbilling.com/blog/topic/medical-billing-services) - [medical necessity (1)](https://www.mbrbilling.com/blog/topic/medical-necessity) - [medical practice (1)](https://www.mbrbilling.com/blog/topic/medical-practice) - [Medicare (42)](https://www.mbrbilling.com/blog/topic/medicare) - [Medicare Access and CHIP Reauthorization Act (1)](https://www.mbrbilling.com/blog/topic/medicare-access-and-chip-reauthorization-act) - [Medicare Advantage (3)](https://www.mbrbilling.com/blog/topic/medicare-advantage) - [medicare cut (11)](https://www.mbrbilling.com/blog/topic/medicare-cut) - [Medicare Data (3)](https://www.mbrbilling.com/blog/topic/medicare-data) - [Medicare EHR Incentive Program (2)](https://www.mbrbilling.com/blog/topic/medicare-ehr-incentive-program) - [Medicare fraud (5)](https://www.mbrbilling.com/blog/topic/medicare-fraud) - [Home](https://www.mbrbilling.com/) - [Why MBR?](https://www.mbrbilling.com/why-mbr/) - [Resource Center](https://www.mbrbilling.com/resource-center/) - [About MBR](https://www.mbrbilling.com/about-mbr/) - [Client Login](http://clientlogin.mbrbilling.com/) Connect with us! [![](https://www.mbrbilling.com/hubfs/MBR-Images/facebook.png)](https://www.facebook.com/MedBillResources) [![](https://www.mbrbilling.com/hubfs/MBR-Images/twitter.png)](https://twitter.com/#!/MedBillResource) [![](https://www.mbrbilling.com/hubfs/MBR-Images/linkedin.png)](http://www.linkedin.com/company/medical-billing-resources) [![](https://www.mbrbilling.com/hubfs/MBR-Images/rss.png)](https://www.mbrbilling.com/CMS/UI/Modules/BizBlogger/rss.aspx?tabid=484940&moduleid=1043750&maxcount=25&u=107101&t=BBE4D262E126601B3B04C3F46C38B13F) © 2012 Medical Billing Resources - All Rights Reserved 28237 Orchard Lake Road, Suite 100 | Farmington Hills, MI 48334 | Local: 248.932.2607 | Toll Free: 800-895-9563 | Fax: 248-932-2863