Rep. Michael Burgess, M.D., (R-TX) today introduced legislation (H.R. 1470) to permanently replace the Medicare physician sustainable growth rate formula and provide a 0.5% payment update for five years as a transition, as well as further updates if needed. In addition, the legislation would consolidate the current-law physician quality reporting system with the electronic health record and value-based modifier programs; incentivize physician participation in alternative payment models and care coordination for patients with chronic care needs; and expand the use of Medicare data for transparency and quality improvement. How the legislation will be paid for remains in flux, but it is expected that more than half of the cost will not be offset, while the remainder will be paid for by cuts to both providers and beneficiaries. Details on the offsets are expected to be released in the coming days. House leaders have stated their intention to bring the bill to the floor for a vote next week and then send it to the Senate for a possible vote before the latest SGR patch expires on March 31.