House Backs SGR Repeal, But Funding Is In Dispute

Law360, New York (March 14, 2014, 3:35 PM EDT) -- A divided U.S. House of Representatives on Friday approved repealing Medicare’s widely disliked physician reimbursement formula, the sustainable growth rate, but bankrolled the $138 billion bill with an all-but-doomed plan to delay enforcement of tax penalties for noncompliance with the Affordable Care Act’s individual mandate.

The postponement of penalties would be a net plus for the federal deficit because, in the absence of any enforcement mechanism, far fewer Americans would seek government-subsidized coverage on ACA insurance exchanges, according to the Congressional Budget Office.

Friday’s 238-181 vote,...
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