The American Action Forum today released new research into a bipartisan, bicameral proposal to repeal the Sustainable Growth Rate (SGR). The AAF research finds that by 2035 the SGR repeal would reduce spending by $295 billion. In the first 10 years, the SGR repeal would reduce spending by $65 billion. An additional $230 billion reduction in spending would be realized by 2035.
 
“Over the first 20 years it reduces spending and over any longer horizon the permanent, structural reforms improve incentives and reduce spending on Medicare even more. Put differently, the bill more than nets zero over the longer horizon,” said Douglas Holtz-Eakin, President of the American Action Forum. “The proposed SGR repeal bill is not perfect. But it will fix the reimbursement of doctors, introduce structural changes to Medicare, extend CHIP, and balance over the next 20 years – without raising taxes.”
 
Click here to read the research.