With the release May 28 of a third legislative draft that would revamp the Medicare physician payment system and repeal the sustainable growth rate formula, the House Energy and Commerce Committee seems to parting ways with the House Ways and Means Committee over jointly developing a bill. The two committees had been working together on the legislation, but the press release from Energy and Commerce announcing the third draft did not mention the involvement of Ways and Means.  Additionally, while Energy and Commerce staff met May 28 with physician groups to discuss the draft, no representatives were present from Ways and Means, sources said.

According to the legislative draft, the payment system revamp would be accomplished in three steps. The first step would be to repeal the SGR, which would then be followed by a payment system based on quality-of-care measures. The final step of the revamp would call for additional reform of the Medicare payment system to account for the efficiency of care provided. Energy and Commerce's Subcommittee on Health is slated to hold a hearing on the issue June 5, and comments on the draft are due by June 10.