Which legislation discontinued the use of the SGR formula for determining Medicare payments?

The legislation that discontinued the use of the Sustainable Growth Rate (SGR) formula for determining Medicare payments is the Medicare Access and CHIP Reauthorization Act, commonly known as MACRA. This act was enacted in 2015 to address the volatility and problems associated with the SGR formula, which had been a source of annual budget-related concerns and temporary fixes for many years.

MACRA established a new payment system aimed at transitioning from volume-based payment models to value-based care. It introduced the Quality Payment Program, which incentivizes healthcare providers to focus on quality over quantity, thus improving patient outcomes and maintaining more stable Medicare payment rates. By repealing the SGR, MACRA provided a more predictable and sustainable framework for Medicare reimbursements, which reflects the quality of services provided to patients rather than just the volume of services delivered.

The other options do not pertain to the discontinuation of the SGR formula: the IMPACT Act (Improving Medicare Post-Acute Care Transformation Act) focuses on improving and standardizing data collection across various post-acute care settings; the NOTICE Act (Notice of Observation Treatment and Implication for Care Eligibility Act) is related to patient notification regarding their observation status while receiving care in a hospital; and HIPAA (Health Insurance