WASHINGTON -- In a historic move late Tuesday, the Senate voted 92-8 to permanently repeal the sustainable growth rate (SGR) formula for physician reimbursement under Medicare.

The Senate vote on H.R. 2, which passed the House on March 26, sends the bill to President Obama for his signature. The president has already indicated he would sign the bill.

Members from both sides of the aisle praised the passage of the bill, known as the "Medicare Access and CHIP Reauthorization Act of 2015." "The bill represents 2 years of hard work on both sides of the Capitol," said Sen. Orrin Hatch (R-Utah). "I want to commend everyone who worked on this legislation, particularly [former] Sen. Max Baucus [D-Mont.], now ambassador to China, and also my colleagues on the House Energy and Commerce and Ways and Means committees. It's a monumental achievement, something long in the offing, and I want to express my gratitude for being able to pass this bill."

Sen. Ron Wyden (D-Ore.) called the bill's passage "a milestone for the Medicare program, a lifeline for millions of older people. The Senate is voting to [get rid of] the outdated, inefficiency-rewarding, Medicare reimbursement system."

The measure includes replacing the SGR with an increase of 0.5% in Medicare physician reimbursement starting in July 2015 through December 2015, and then annual 0.5% increases lasting through 2019.

The measure also consolidates various reporting programs, such as the Meaningful Use program for electronic health records and several quality reporting programs, into a new, merit-based incentive payment system and would incentivize physicians to participate in alternative payment models such as accountable care organizations (ACOs).

In addition, the bill extends the Children's Health Insurance Program as well as funding for community health centers and the National Health Service Corps.

The votes in the House and Senate came after years of negotiations to get rid of the much-maligned formula, in which Medicare physician reimbursements were linked to increases in the gross domestic product; the formula invariably resulted in payment cuts for physicians. The cuts were staved off each time by a series of payment "patches" passed by Congress.

The American Medical Association, which had long lobbied for permanent repeal of the SGR, also expressed pleasure at the bill's passage. "Passage of this historic legislation finally brings an end to an era of uncertainty for Medicare beneficiaries and their physicians -- facilitating the implementation of innovative care models that will improve care quality and lower costs," AMA CEO and executive vice president James Madara, MD, said in a statement. "Patients will be able to get the care they need and deserve."

"In addition to eliminating the flawed SGR formula, we applaud our policymakers for ensuring access to care for children, low-income individuals, and families by extending funds for the Children's Health Insurance Program and community health centers," he added.

The American College of Cardiology was similarly ebullient. "Today is an exceptional day for Medicare patients and for the medical professionals who care for them," said American College of Cardiology President Kim Allan Williams Sr., MD, in a statement. "The Senate has accomplished a major feat by passing legislation that ends a cycle of delays and patches in the law, which has created uncertainty for Medicare patients and clinicians for more than a decade."

The vote came a little after 9:30 p.m. Eastern time following several attempts to amend the measure, all of which failed. Proposed amendments included one by Sen. Mike Lee (R-Utah) to fund the measure, which would cost $200 billion over 10 years, on a "pay as you go" basis; one by Sen. Tom Cotton (R-Ark.) to indefinitely extend a flat 0.5% pay increase to Medicare physicians; and one by Sen. Patty Murray (D-Wash.) to, among other things, "invest in strengthening women in the healthcare workforce."

Robert Field, JD, a professor of law and public health at Drexel University in Philadelphia, said the most impressive aspect of tonight's vote is that it passed with bipartisan support. "I can't remember the last time a bill this important passed with such a lopsided vote, especially in healthcare," he said.

David Howard, PhD, a professor in the department of health policy and management at Emory University in Atlanta, called the bill's passage "a step in the right direction."

Given that Congress wouldn't ever have allowed the physician payment cuts to be enacted, Howard said, "This bill was the next best alternative to a continued cycle of temporary short run fixes."

Washington correspondent Shannon Firth contributed to this story.