CQ HealthBeat is reporting that Peter Orszag, Director of the White House Office of Management and Budget, says he expects revision of the nation’s medical malpractice litigation system to be a part of health overhaul discussions.

The healthcare proposal of the House Democrats released yesterday calls for replacing the Sustainable Growth Rate (“SGR”) used to calculate Medicare payments.  The SGR is the mechanism that is intended to adjust physician per service compensation so that overall spending remains constant.  Without legislative action this year, physicians would face a 21% reimbursement cut in 2010, and an additional 6% annual decrease for several years thereafter. The House Democrats also propose increasing compensation to primary care physicians.

It’s too soon to tell how this will all shake out, but it is good to know that both the Executive Branch and Congress are at least considering the plight of physicians while they are diddling with the system.