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MACRA and the CMS Quality Payment Program Maximizing Your Payments Howard Pitluk, MD, MPH, FACS Vice President, Medical Affairs & Chief Medical Officer Health Services Advisory Group (HSAG) AOMA 96th Annual Convention April 13, 2018 MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services Disclosure I have nothing to report nor are there any real or perceived conflicts of interest, implied or expressed, in the following presentation. 2

MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

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Page 1: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

MACRA and the CMS Quality Payment Program

Maximizing Your Payments

Howard Pitluk, MD, MPH, FACSVice President, Medical Affairs & Chief Medical Officer

Health Services Advisory Group (HSAG)AOMA 96th Annual Convention

April 13, 2018

MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015CMS = Centers for Medicare & Medicaid Services

Disclosure

I have nothing to report nor are there any real or perceived conflicts of interest, implied or expressed, in the following presentation. 

2

Page 2: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

HSAG’s QIN‐QIO Territory

3

HSAG is the Medicare QIN‐QIO for Arizona, California, Florida, Ohio, and the U.S. Virgin Islands.   

Nearly 25 percent of the nation’s Medicare beneficiaries 

Origins of the Quality Payment Program: MACRA 

• Bipartisan Legislation: the “Medicare Access and CHIP Reauthorization Act,” 2015

• Increases focus on quality of care delivered– Clear intent that outcomes needed to be rewarded, not number of 

services– Shifts payments away from number of services to overall work of 

clinicians– Moving toward patient‐centric health care system

• Replaces Sustainable Growth Rate (SGR)

4

Overall physician costs

Target Medicare 

expenditures

Physician payments cut across the board

SGR eliminated by MACRA 

Page 3: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

New Model ‐ Quality Payment Program (QPP)

AccountableCareInstitute.com 9  

Federal Policy Goals For Value Based Alternative Payment  

  

1. Financial viability of Federal and State Healthcare Coverage Programs  

2. Payment Incentives are based on value based care  

 

3. Joint Accountability for clinical and healthcare cost outcomes  

 

4. Effectiveness of the care provided reduces unnecessary or avoidable

healthcare cost  

5. Ensuring Access to affordable high quality care  

 

6. Safety and Transparency in the provision of quality care  

 

7. Care Transitions are well-coordinated across different systems of care  

 

8. Electronic Health Records are used effectively to delivery high quality,

efficient, and coordinated care

5

Quality Payment Program:MIPS and Advanced APMs

The Medicare Access and CHIP* Reauthorization Act of 2015 (MACRA) requires CMS by law to implement an incentive program, referred to as the Quality Payment Program (QPP), that provides for two participation tracks:

6

OR

Advanced Alternative Payment ModelsIf you decide to take part in an Advanced APM, you may earn a Medicare incentive payment for

sufficiently participating in an innovative payment model.

Merit Based Incentive Payment Program

If you decide to participate in MIPS, youwill earn a performance-based payment

adjustment through MIPS.

* Children’s Health Insurance Program

Source: The Centers for Medicare & Medicaid Services 

MIPS Advanced APMs

Page 4: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

MIPS

MIPS Quick Overview

8

Combined legacy programs into a single, improvedprogram

Physician Quality Reporting System (PQRS)

Value-Based Payment Modifier (VM)

Medicare EHR Incentive Program (EHR)

MIPS

Source: The Centers for Medicare & Medicaid Services 

EHR = Electronic health record

Page 5: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

MIPS: Quick Overview

9

100 Possible Final Score

Points

=

• Comprised of four performance categories in 2018.

• The points from each performance category are added together to  give you a MIPS Final Score.

• The MIPS Final Score is compared to the MIPS performance threshold to  determine if you receive a positive, negative, or neutral payment  adjustment.

MIPS Performance Categories for Year 2 (2018)

Quality

50

+ + +

Cost

10

Improvement  Activities

15

AdvancingCare  

Information

25

Source: The Centers for Medicare & Medicaid Services 

MIPS Year 2 (2018): Who Is Included?

10

Physicians PhysicianAssistants

NursePractitioners

Clinical

Nurse Specialists

CRNAs

No change in the types of clinicians eligible to participate in 2018

MIPS eligible clinicians include:

Source: The Centers for Medicare & Medicaid Services 

Page 6: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

Incentive Payments

11

MIPS Year 2 (2018): Who Is Exempt?

12

Below the low‐volume threshold

• Medicare Part B allowed  charges less than or  equal to $90,000 a year

OR• See 200 or fewer  Medicare Part B patients  a year

No Change in Basic Exemption Criteria*

*Only Change to Low‐volumeThreshold

Newly‐enrolled in Medicare

• Enrolled in Medicare for the first time during the performance period (exempt until following performance year)

Source: The Centers for Medicare & Medicaid Services 

Significantly participating in Advanced APMs

• Receive 25% of Medicare payments

OR• See 20% of their 

Medicare patients through an Advanced APM

AdvancedAPM

Page 7: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

Accommodations for Small Practices

In Effect for 2017

• Pick your pace transition

• Low‐volume threshold $30K/100 patients

• Reduced Improvement Activity (IA) reporting

• $100 million in grants for technical assistance via QIOs and regional health improvement collaboratives

Proposed for 2018

• Low‐volume threshold raised to $90K/200 patients

• Reduced IA reporting continued

• Technical assistance grants continued

• Virtual groups created

• Advancing Care Information (ACI) hardship exemption for small practices

• Bonus points added to final score for small practices

13

CMS estimates 81.2% of Eligible physicians (EPs) in practices of 1–15will experience positive or neutral adjustments in 2020.

Source:  Medicare Quality Payment Program Overview. American Medical Association. January 2017. Available at https://webcache.googleusercontent.com/search?q=cache:qslkN9HDxRAJ:https://www.ama‐assn.org/sites/default/files/media‐browser/specialty%2520group/washington/macra‐january‐2017‐slides.pptx+&cd=1&hl=en&ct=clnk&gl=us

MIPS Year 2 (2018): Non‐Patient Facing

14

No Change in Non‐Patient Facing Criteria

Transition Year 1 (2017) Final

• Individual—If you have <100 patient‐facing encounters.

• Groups—If your group  has >75% of NPIs billing  under your group’s TIN  during a performance period are labeled as  non‐patientfacing.

Year 2 (2018) Final

• No Change to Individual  and Group definitions.

• NEW—Virtual Groups areincluded in the definition.

• Virtual Groups that have>75% of NPIs within a  virtual group during a  performance period are  labeled as non‐patient facing

Source: The Centers for Medicare & Medicaid Services 

Page 8: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

MIPS Year 2 (2018): Reporting Options

15

* If clinicians participate as a group, they are assessed as a group across all 4 MIPS performance categories. The  same is true for clinicians participating as a VirtualGroup.

2. As aGroup of 2 or more clinicians (NPIs) who have reassigned their billingrights to a single TIN* or

a)As an APMEntity

1. Individual—under an National  Provider Identifier (NPI)  number and Taxpayer  Identification Number (TIN)  where they reassignbenefits

3. As a Virtual Group—solo practitioners and groups of 10 or fewer  eligible clinicians who come  together “virtually” (no  matter what specialty or  location) to participate in MIPS for a year performance  period

Options

Individual Group Virtual Group  

Source: The Centers for Medicare & Medicaid Services 

Potential Advantages of Virtual Groups

• Share burden of MIPS reporting– Combine credit for MIPS categories like Improvement Activities

• Combine patient counts in quality reporting for more reliable sample sizes

• Maintaining independence• Take advantage of group reporting options

– But non‐patient facing MIPS clinician and small practice, rural area, and HPSA designation would not apply

• CMS will provide technical assistance• Challenges:

– IT infrastructure lacking– Different EHR systems– Workflow and staff training changes

17

Page 9: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

MIPS Year 2 (2018): Virtual GroupsWhat Else Do I Need to Know?

17

What else do I need to know?

• Solo practitioners and groups who want to form a virtual group must go  through the election process.

• Virtual groups election must occur prior to the beginning of the  performance period and cannot be changed once the performance period  starts.

• Election period was October 11 to December 31, 2017, for the 2018 MIPS  performance period.

New: Virtual Groups

Source: The Centers for Medicare & Medicaid Services 

MIPS Year 2 (2018): Quality Basics

18

Basics:

• 50 percent of Final Score in 2018

• 270+ measuresavailable

• You select 6 individualmeasures

• 1 must be anOutcomemeasure

OR

• High‐prioritymeasure

• You may also select a  specialty‐specific set of measures

Component Transition Year1(2017) Final

Year 2 (2018) Final

Weight to Final  Score

• 60% in 2019 payment year 

• 50% in 2020 

payment year

DataCompleteness

• 50% for submission  mechanisms except  for Web Interface  and CAHPS.

• Measures thatdo  not meet datacompleteness  criteria earn 3  points.

• 60% for submission  mechanisms except for  Web Interface and  CAHPS®.

• Measures that donot  meet datacompleteness criteria  earn 1point. 

• Burden Reduction Aim:  Small practices will  continue to receive 3  points.

CAHPS® =  Consumer Assessment of Healthcare Providers and Systems®  Source: The Centers for Medicare & Medicaid Services 

Page 10: MACRA and QPP · 2018-05-05 · MACRA = Medicare Access and Children’s Health Insurance Program [CHIP] Reauthorization Act of 2015 CMS = Centers for Medicare & Medicaid Services

MIPS Year 2 (2018): Cost Basics—Reporting and Scoring

$

19

Reporting/Scoring:

• Each individual MIPS eligible clinician’s and group’s cost  performance will be calculated using administrative claims data  if they meet the case minimum of attributedpatients.

• Individual MIPS eligible clinicians and groups are not required to  submit any additional information for the cost performance  category.

• Performance is compared against performance of other MIPS  eligible clinicians and groups during the performance period so  benchmark is not based on a previousyear.

• Performance category score is the average of the two  measures: Medicare Spending per Beneficiary (MSPB) andtotal per capita costmeasures.

• If only one measure can be scored, it will serve asthe performance category score.

Basics:

• Change: 10 percentCounted toward FinalScore in 2018

• MSBP* and total per capita cost measures are included in calculating Cost performance category score  for the 2018 MIPS  performanceperiod.

• These measures wereused  in the Value Modifier and in  the MIPS transition year.

Source: The Centers for Medicare & Medicaid Services 

*Medicare Spending per Beneficiary

$

MIPS Year 2 ( 2018)Improvement Activities

• Attest to participation in activities that improve clinical practice

• Clinicians choose from 112 activities under 9 subcategories: 

20 Source: The Centers for Medicare & Medicaid Services 

1. Expanded Practice Access 2. Population Management 3. Care Coordination

4. Beneficiary Engagement5. Patient Safety and Practice 

Assessment6. Participation in an APM

7. Achieving Health Equity8. Integrating Behavioral and 

Mental Health9. Emergency Preparedness and 

Response

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MIPS Year 2 (2018): Improvement Activities

Basics:

• 15 percent of Final Score in 2018

• 112 activities available in  the inventory• Medium and HighWeights

remain the same from Year1

• Medium = 10points

• High = 20points

• A simple “yes” is all that is  required to attest to  completing anImprovement Activity.

Patient‐centered Medical Home:• We finalized the term “recognized” is equivalent to the 

term “certified” as a patient‐centered medical home orcomparable specialty practice.

• 50% of practice sites* within a TIN or TINs that are part of a virtual group need to be recognized as patient‐centeredmedical homes for the TIN to receive the full credit for Improvement  Activities in 2018.

Number of Activities:

• No change in the number of activities that MIPS‐eligible  clinicians must report to achieve a total of 40points.

• Burden Reduction Aim: MIPS‐eligible clinicians in smallpractices and practices in a rural areas will continue to report on no more than 2 activities to achieve the highest score.

*We have defined practice sites as the practice address that is available  within the Provider Enrollment, Chain, and Ownership System (PECOS).

Source: The Centers for Medicare & Medicaid Services 21

MIPS Year 2 (2018): Improvement Activities (cont.)

AdditionalActivities:

• CMS is finalizing additional activities, and changes to existing activities for the Improvement Activities Inventory includingcredit for using Appropriate Use Criteria (AUC) through a qualified clinical support mechanism for all advanced diagnostic imaging  services ordered.

Scoring:

• Continue to designate activities within the performancecategory  that also qualify for an Advancing Care Informationperformance category bonus.

• For group reporting, only one MIPS‐eligible clinician in a TINmust  perform the Improvement Activity for the TIN to receivecredit.

• For virtual group reporting: only one MIPS‐eligible clinician in a  virtual group must perform the Improvement Activity for the TINto receive credit.

• Continue to allow simple attestation of ImprovementActivities.

Basics:

• 15 percent of Final Score in 2018

• 112 activities available in  the inventory• Medium and HighWeights

remain the same from Year1

• Medium = 10points

• High = 20points

• A simple “yes” is all that is  required to attest to  completing anImprovement Activity

Source: The Centers for Medicare & Medicaid Services 22

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MIPS Year 2 (2018): Advancing Care Information

Basics:

• 25 percent of Final Score in 2018

• Comprised of Base,  Performance, and Bonus score

• Promotes patient  engagement and the  electronic exchange of  information using certified EHR technology(CEHRT)

• Two measure sets  available to choose from  based on EHR edition.

Scoring:

• No change to the base score requirements for the 2018 performance  period/2020 payment year.

• For the performance score, MIPS eligible clinicians and groups will  earn 10% for reporting to any one of the Public Health and Clinical  Data Registry Reporting measures as part of the performance score.

• For the bonus score a 5% bonus score is available for reporting to an  additional registry not reported under the performance  score.

• Additional Improvement Activities are eligible for a 10% Advancing  Care Information bonus for completion of at least 1 of the specified  Improvement Activities using CEHRT.

• Total bonus score available is 25%

CEHRT Requirements

• Burden Reduction Aim: MIPS‐eligible clinicians may use either the 2014 or 2015 CEHRT or a combination in 2018.

• A 10% bonus is available for using only 2015 Edition CEHRT.

Measures and Objectives:• CMS finalizes exclusions for the E‐Prescribing and Health Information  

ExchangeMeasures.

Source: The Centers for Medicare & Medicaid Services 23

MIPS Year 2 (2018): Advancing Care Information Exceptions

24

Basics:

• 25 percent of Final Score in 2018

• Comprised of Base,  Performance, and Bonus scores

• Promotes patient  engagement and the  electronic exchange of  information using CEHRT

• Two measure sets available to choose from based on EHR edition.

Exceptions:

• Based on authority granted by the 21st Century Cures Act and MACRA ,  CMS will reweight the Advancing Care Information performance  category to 0 and reallocate the performance category weight of 25% to the Quality performance category for the following :

Automatic reweighting:

o Hospital‐based MIPS eligible clinicians;

o Non‐Patient Facing clinicians;o Ambulatory Surgical Center (ASC)—based MIPS‐eligible clinicians, finalized 

retroactive to the transition year;

o Nurse practitioners, physician assistants, clinical nurse specialists,  certified registered nurse anesthetists

Reweighting through an approved application:

o New hardship exception for clinicians in small practices (15  or fewerclinicians);

o New decertification exception for eligible clinicians whose EHR  was decertified, retroactively effective to performance periods in 2017.

o Significant hardship exceptions—CMS will not apply a 5‐year limit  to theseexceptions;

• New deadline of December 31 of the performance year for the submission of hardship exception applications for 2017 and futureyears.

• Revised definition of hospital‐based MIPS‐eligible clinician to include  covered professional services furnished by MIPS‐eligible clinicians in an off‐campus‐outpatient hospital (POS 19).

Source: The Centers for Medicare & Medicaid Services 

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MIPS Year 2 (2018): Submission Mechanisms

25

No change: All of the submission mechanisms remain the same from Year 1 to Year 2

Please note:

• Continue with the use of 1 submission mechanismper performance category in Year 2 (2018). Same policy as Year 1.

• The use of multiple  submission mechanisms per performance category is deferred to Year 3 (2019).

Performance  Category

SubmissionMechanisms  forIndividuals

Submission Mechanisms for Groups  (Including Virtual Groups)

Quality

Qualified Clinical Data Registry (QCDR)QualifiedRegistry  EHRClaims

QCDRQualifiedRegistry  EHRCMS Web Interface (groups of 25 ormore)

Cost

Administrative claims  (no submissionrequired)

Administrative claims (no submission  required)

ImprovementActivities

AttestationQCDRQualifiedRegistryEHR

AttestationQCDRQualifiedRegistryEHRCMS Web Interface (groups of 25 ormore)

AdvancingCare Information

AttestationQCDRQualifiedRegistryEHR

AttestationQCDRQualifiedRegistryEHRCMS Web Interface (groups of 25 ormore)

Source: The Centers for Medicare & Medicaid Services 

MIPS Year 2 (2018) Scoring

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MIPS Year 2 (2018): Calculating the Final Score

27

Quality

50%

+ + +

Cost

10%

Improvement  Activities

15%

Advancing CareInformation

25%

100Possible  Final  Points

=

Remember: All of the performance category points are added together to give you a MIPS Final Score.

The MIPS Final Score is compared to the MIPS performance threshold to determine if you receive a positive, negative, or neutral 

payment adjustment.

Source: The Centers for Medicare & Medicaid Services 

MIPS Year 2 (2018): Complex Patient Bonus

28

• Up to 5 bonus points available for treating patients based on medical complexity.

o As measured by Hierarchical Condition Category (HCC) risk score anda score  based on the percentage of dual eligible beneficiaries.

• MIPS‐eligible clinicians or groups must submit data on at least 1 performance  category in an applicable performance period to earn the bonus.

New: Complex Patient Bonus

Source: The Centers for Medicare & Medicaid Services 

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MIPS Year 2 (2018): Small Practice Bonus

29

• 5 bonus points added to final score of any MIPS‐eligible clinician or group  who is in a small practice (15 or fewer clinicians), so long as the MIPS‐eligible clinician or group submits data on at least 1 performance category in an applicable performance period.

• Burden ReductionAim:o CMS recognizes the challenges of small practices and will provide a 5

point bonus to help them successfully meet MIPS requirements.

New: Small Practice Bonus

Source: The Centers for Medicare & Medicaid Services 

MIPS Year 2 (2018): Facility‐based Measurement

30

New: Facility‐based Measurement

Please note:

• Facility‐based measurement policies are finalized, but with a 1‐year  delay to Year 3 (2019).

• Facility‐based measurement assesses clinicians in the context of the facilities at which they work to better measure their quality.

• Voluntary facility‐based scoring mechanism will be aligned with the Hospital Value‐Based Purchasing Program (Hospital VBP) to help reduce burden forclinicians.

• Eligible as individual: You must have 75% of services in the inpatient hospital or emergency room.

• Eligible as group: 75% of eligible clinicians must meet eligibility criteria as individuals.

• Measures will be based on Hospital VBP for quality and cost measures.

• Scores will be derived using the data at the facility where the clinician treats the highestnumber of Medicare beneficiaries.

• The facility‐based measurement option converts a hospital Total Performance Score into a MIPS quality performance category and cost performance category score.

Source: The Centers for Medicare & Medicaid Services 

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MIPS Year 2 (2018) Performance Threshold and 

Payment Adjustment

Performance  Category

Minimum  PerformancePeriod

Quality

12‐months

Cost

12‐months

Improvement  Activities

90‐days

AdvancingCare  Information

90‐days

MIPS Year 2 (2018): Performance Period

32

Year 2 (2018) Final

Change: Increase to Performance Period

Transition Year 1 (2017) FinalPerformance  Category

Minimum  PerformancePeriod

Quality

90‐days minimum; full year(12 months) was anoption

Cost

Not included.12‐months for feedback  only.

Improvement  Activities

90‐days

AdvancingCareInformation

90‐days

Source: The Centers for Medicare & Medicaid Services 

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MIPS Year 2 (2018): MIPS Performance Threshold & Payment Adjustment

33

Change: Increase in Performance Threshold and Payment Adjustment

Transition Year 1 (2017) Final Year 2 (2018) Final

How can I achieve 15 points?• Report all required ImprovementActivities.• Meet the Advancing Care Information base score and submit 1 Quality measure thatmeets data completeness.

• Meet the Advancing Care Information base score, by reporting the 5 base measures, andsubmit one medium‐weighted ImprovementActivity.

• Submit 6 Quality measures that meet data completenesscriteria.

• 3 point threshold

• Exceptional performerset at 70 points

• Payment adjustment set at +/- 4%

• 15 point threshold

• Exceptional performer set at 70 points

• Payment adjustment set at +/- 5%

Source: The Centers for Medicare & Medicaid Services 

MIPS Year 2 (2018): MIPS Performance Threshold & Payment Adjustment (cont.)

34

FinalScore  

2017

Payment Adjustment 2019

>70

points

Positive adjustment Eligible for exceptional  

performance bonus—

minimum of additional 

0.5%

4‐69

points

Positive adjustment Not eligible for  

exceptional

performance  bonus

3

points Neutral payment  

adjustment

0

points

Negative payment  

adjustment of ‐4%

0 points = does not

participate

FinalScore  

2018

Change  

Y/N

Payment Adjustment 2020

>70

pointsN

Positive adjustment greater than0%

Eligible for exceptional  

performance bonus—

minimum of additional 0.5%

15.01‐

69.99

points

Y

Positive adjustment

greater than 0%

Not eligible for exceptionalperformancebonus

15

pointsY

Neutral payment

adjustment

3.76‐

14.99points

Y Negative payment  

adjustment greater than

‐5% and less than 0%

0‐3.75

points Y Negative payment

adjustment of ‐5%

Year 1 (2017) Year 2 (2018)

Source: The Centers for Medicare & Medicaid Services 

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Changes in MIPS from 2017 to 2018 (Summary)

•MIPS performance threshold raised from 3 points to 15 points out of 100•MIPS cost category weight increased from 0% to 10%, and quality down from 60% to 50%•Introduction of virtual groups as a new way to group clinicians for reporting •Raising the low‐volume MIPS exclusion threshold, which causes an estimated 80% of MIPS eligible clinicians to be in organizations of greater than 25 clinicians each for 2018•Minimum quality reporting period expanded from 90‐days to the full year•Data completeness threshold for most quality reporting methods increased from 50% to 60%•New 10% ACI category bonus for exclusively using 2015 Edition CEHRT•New deadline of December 31st of the performance year to apply for an ACI hardship exemption•Exclusions for the ACI e‐Prescribing and Health Information Exchange base measures, effective for both 2017 (retro‐active) and 2018•MIPS bonus points for complex patients and small practices•Category Improvement Scores for Quality Category

35

Alternative Payment Models (APMs)

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APMs

• APM = payment approach, developed in partnership with the clinician community, that provides added incentives to clinicians to provide high‐quality and cost‐efficient care. APMs can apply to a specific clinical condition, a care episode, or a population.

• Advanced APM = term established by CMS; these APMs have greatest risks and offer potential for greatest rewards.

37

Source:  Medicare Quality Payment Program Overview. American Medical Association. January 2017. Available at https://webcache.googleusercontent.com/search?q=cache:qslkN9HDxRAJ:https://www.ama‐assn.org/sites/default/files/media‐browser/specialty%2520group/washington/macra‐january‐2017‐slides.pptx+&cd=1&hl=en&ct=clnk&gl=us

APMs participation options as outlined by CMS

• “Advanced” APMs have greatest risks and offer potential for greatest rewards

• Qualified Medical Homeshave different risk structure but otherwise will be treated as Advanced APMs 

• MIPS APMs receive favorable MIPS scoring

• Physician‐focused APMs areunder development

Advanced APMs

and Qualified Medical Homes

MIPS APMs

Physician‐focused 

APMs TBD

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In order to qualify for the 5‐percent APM incentive payment for a year, eligible clinicians mustreceive a certain percentage of payments for covered professional services or see a certain percentage of patients through an Advanced APM during the associated performance year.

Requires participants to use certified EHR technology;

Provides payment for covered professional services based on quality measures comparable to those used in the MIPS quality performance category; and

Either: (1) is a Medical Home Model expanded under CMS Innovation Center authority OR (2) requiresparticipants to bear a more than nominal amount of financial risk.

Advanced APMs: Advanced APM Criteria

39

Advanced APMs are a subset of APMs. To be an Advanced APM, a model must 

meet the  following three statutory requirements:

Source: The Centers for Medicare & Medicaid Services 

Requirements for APM Incentive Payments for Qualified Participants (QP) in Advanced APMs

(Clinicians must meet payment OR patient requirements)

Performance Year 2017 2018 2019 2020 20212022 and later

Percentage of

Payments through an Advanced APM

Percentage of 

Patients through an Advanced APM

CMS Requirements for Advanced APMs

25% 25%

20% 20% 35% 35% 50% 50%

50% 50% 75% 75%

40 Source: The Centers for Medicare & Medicaid Services 

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Transition Year 1 (2017) FinalYear 2 (2018) Final

Advanced APMs: Generally Applicable Nominal Amount Standard

41

Total potential risk under the APM  must be equal to at leasteither:

o 8% of the average estimated  Parts A and B revenue of  providers and suppliers in  participating APM Entities for  the QP performance period in  2017 and 2018, OR

o 3% of the expected  expenditures an APM Entity is  responsible for under theAPM  for all performanceyears.

The 8% revenue‐based standard is extended for two additional years, through  performance year 2020.

Total potential risk under the APM mustbeequal to at least either:

• 8% of the averageestimatedParts A and B revenue of providers  and suppliers in participating APM  Entities for QP Performance Periods  2017, 2018, 2019, and 2020, OR

• 3% of the expected expenditures an  APM Entity is responsible for under  the APM for all performance years.

Change: Extend the 8 percent revenue‐based nominal amount standard for an additional two years, through performance period 2020.

Source: The Centers for Medicare & Medicaid Services 

Advanced APMs: Medical Home Model

At least four of the followingadditional elements:

Planned coordination of chronic and preventive care.

Patient access and continuity of care.

Risk‐stratified care management.

Coordination of care across the medical neighborhood.

Patient and caregiver engagement.

Shared decision‐making.

Payment arrangements in addition to, or substituting for, fee‐for‐service payments.

Empanelment of  each patient to a primary clinician;and…

Participantsinclude  primary care practices  or multispecialty  practices that include  primary care physicians  and practitioners and  offer primary care  services.

42

A Medical Home Model is an APM that has the following features:

Source: The Centers for Medicare & Medicaid Services 

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Advanced APMs: Medical Home Model Nominal Amount Standard

Transition Year 1 (2017) Final

• Total potential risk that an APM Entity  potentially owes CMS or foregoes must be equal to at least:o 2.5% of the average estimated total Part A and B revenues of all  providers and suppliers participating APM Entities for performance year 2017.

Year 2 (2018) Final

• Total potential risk that an APM Entity  potentially owes CMS or foregoes must be equal to at least:o 2.5% of the average estimated total Part A and B revenues of all providers and suppliers in participating APM Entities for performance year 2018.

o 3% … for performance year 2019.

o 4% … for performance year 2020.o 5% … for performance year 2021 and after.

Change: Increasing the minimum required amount of total risk increases  more gradually, maintaining the standard at 2.5 percent in 2018 and ramping up to 5 percent in 2021 and thereafter.

43 Source: The Centers for Medicare & Medicaid Services 

Medical Home Models are subject to different (more flexible) standards in  order to meet 

the financial risk criterion to become an AdvancedAPM.

Timeline for Determining Eligibility and Bonuses• Qualified Medicare APM participants identified by CMS 

via 3 “snapshots”: March 31, June 30, August 31– Physicians listed as participants on one of those dates will 

be considered participants for that performance year– Performance of all participants in an APM entity to be 

judged as a whole– New flexibility proposed to allow start‐up APMs 

to participate

• Performance year ends August 31– Provides time for MIPS reporting for those not 

meeting thresholds

• 5 percent bonus will be calculated on Medicare revenues for second calendar year– Lump sum payment provided in third calendar year

• CMS estimates that 100 percent of APM participants in 2017 will be eligible for bonus payments in 2019

44

Example of bonus calculation timeline:  • 2017 performance year 

determines eligibility (as of August 31)

• 2018 year‐end revenues provide base for calculating bonus

• Lump sum bonus payment mid‐2019 after all 2018 claims are submitted

Source:  Medicare Quality Payment Program Overview. American Medical Association. January 2017. Available at https://webcache.googleusercontent.com/search?q=cache:qslkN9HDxRAJ:https://www.ama‐assn.org/sites/default/files/media‐browser/specialty%2520group/washington/macra‐january‐2017‐slides.pptx+&cd=1&hl=en&ct=clnk&gl=us

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2017 Advanced APMs

Comprehensive ESRD Care Model 

(A portion of 37 ESCOs* will qualify)

*ESRD Seamless Care Organizations 

Comprehensive Primary Care Plus

(2,893 practices)

Medicare Shared Savings Track 2 

(6 ACOs, 1% of total)

Medicare Shared Savings Track 3

(36 ACOs, 8% of total)

Next Generation ACO Model

(currently 45)

Oncology Care Model Track 2

(A portion of 190 practices qualify)

45

Source:  Medicare Quality Payment Program Overview. American Medical Association. January 2017. Available at https://webcache.googleusercontent.com/search?q=cache:qslkN9HDxRAJ:https://www.ama‐assn.org/sites/default/files/media‐browser/specialty%2520group/washington/macra‐january‐2017‐slides.pptx+&cd=1&hl=en&ct=clnk&gl=us

ESCOs = End‐Stage Renal Disease [ESRD] Seamless Care Organizations

New Advanced APMs for 2018 or 2019

ACO Track 1+

New participants in 2017 APMs

(i.e., CPC+ Round 2)

Comprehensive Care for Joint Replacement Payment Model 

Advancing care coordination through episode payment models Track 1 (CEHRT)

Vermont Medicare ACO Initiative (all payer ACO 

model)New APMs TBD

46 46

Source:  Medicare Quality Payment Program Overview. American Medical Association. January 2017. Available at https://webcache.googleusercontent.com/search?q=cache:qslkN9HDxRAJ:https://www.ama‐assn.org/sites/default/files/media‐browser/specialty%2520group/washington/macra‐january‐2017‐slides.pptx+&cd=1&hl=en&ct=clnk&gl=us

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Proposed All‐Payer APM Combination Option

• Available beginning 2019 performance year

• Option only for clinicians who fail to become qualified APM participants under the Medicare‐only APM pathway

• Payers must submit applications to CMS, beginning for performance year 2019

– Medicaid, Medicare Advantage, and Center for Medicare & Medicaid innovation (CMMI) multi‐payer models may submit arrangements; will be expanded to commercial payers and other non‐Medicare/Medicaid plans in future years

• Model requirements similar to Medicare advanced APMs

– 50 percent of clinicians must use certified EHR technology (CEHRT) and clinician payments based on quality measures similar to MIPS.

– Must be a Medicaid Medical Home model similar to a Medicare expanded PCMH model or require participants to bear more than nominal financial risk.

• Qualifying All‐Payer participant determination period will differ, January 1  through June 30 (vs. August 31 for Medicare APM determinations)

47

Source:  Medicare Quality Payment Program Overview. American Medical Association. January 2017. Available at https://webcache.googleusercontent.com/search?q=cache:qslkN9HDxRAJ:https://www.ama‐assn.org/sites/default/files/media‐browser/specialty%2520group/washington/macra‐january‐2017‐slides.pptx+&cd=1&hl=en&ct=clnk&gl=us

APM Scoring Standard for MIPS APMs

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The APM scoring standard offers a special, minimally‐burdensome way of participating in MIPS for eligible clinicians in APMs who do not meet the requirements to become QPs and are therefore subject to MIPS, or eligible clinicians who meet the requirements to become a Partial QP and aretherefore able to choose whether to  participate in MIPS. The APM scoring standard applies to APMs that meet the following criteria:

49

APM Entities participate in the APM under an agreement with CMS;

APM Entities include one or more MIPS‐eligible clinicians on a  Participation List; and

APM bases payment incentives on performance (either at the APM Entity or eligible clinician level) on cost/utilization and quality.

APM Scoring Standard

Source: The Centers for Medicare & Medicaid Services 

APM Scoring Standard: Category Weighting for MIPS APMsIn the 2017 Final Rule, CMS finalized different scoring weights for Medicare Shared  Savings Program and the Next Generation ACO model, which were assessed on quality, and other MIPS APMs, which had quality weighted to zero. For 2018 CMS is proposing to align weighting across all MIPS APMs, and assess all MIPS APMs on quality.

Transition Year (2017) Year 2 (2018) Final

All MIPSAPMs

50%

0%

20%

30%

DomainSSP & Next  Generation  

ACOs

OtherMIPS  APMs

50% 0%

0% 0%

20% 25%

30% 75%

50 Source: The Centers for Medicare & Medicaid Services 

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APM Scoring Standard: Additional Changes for Year 2

51

CMS finalized additional details on how the quality performance category will be scored under the APM scoring standard for non‐ACO models, who had quality weighted to zero in 2017.• In 2018, participants in MIPS APMs will be scored under MIPS 

using the quality measures that they are already required to report on as a condition of their participation in their APM.

• Additional “Snapshot" date of December 31st for full TIN APMs (Medicare Shared Savings Program) for determining which eligible clinicians are participating in a MIPS APM for purposes of the APM scoring standard will be added to the existing March 31, June 30, and August 31 snapshot dates.

• This allows participants who joined full TIN APMs between September 1st and December 31st of the performance year to benefit from the APM scoring standard.

Source: The Centers for Medicare & Medicaid Services 

The QPP Website: www.QPP.CMS.gov

52Source: Quality Payment Program. CMS. Available at www.qpp.cms.gov. 

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CMS has free resources and organizations on the ground to provide help to  clinicians who are eligible for the QPP:

Technical Assistance for Clinicians

Source: The Centers for Medicare & Medicaid Services 53

To learn more, view the Technical Assistance Resource Guide: https://www.cms.gov/Medicare/Quality‐Payment‐Program/Resource‐Library/Technical‐Assistance‐Resource‐Guide.pdf

HSAG

HSAG

Call to Action – Request No‐Cost Assistance

54

www.hsag.com/QPP

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This material was prepared by Health Services Advisory Group, the Medicare Quality Improvement Organization for California, under contract with the Centers for Medicare & 

Medicaid Services (CMS), an agency of the U.S. Department of Health and Human Services. The contents presented do not necessarily reflect CMS policy. 

Publication No. CA‐11SOW‐D.1‐01052018‐01

55

HSAG is an open, objective, and collaborative partner working across organizational, cultural, and geographic boundaries to share 

knowledge and resources with all stakeholders.