3. Push Toward Value & Quality
3
• Medicare payments tied to
quality or value by end of
2018
• Of those through alternative
payment models (APMs) by
end of 2016
• Private payer business
through value-based
arrangements by 202075%
Materials herein reflect public law 114-10
dated April 16, 2015
4. Medicare Access & CHIP
Reauthorization Act (MACRA)
4
“To repeal the Medicare SGR and
strengthen Medicare access by improving
physician payments…”
PhotoCourtesyofAmyMullins,MD
Materials herein reflect public law 114-10
dated April 16, 2015
5. What is MACRA?
• Signed into law
April 16, 2015
• Passed 392 to 37
in the House and
92 to 8 in the
Senate
5
Materials herein reflect public law 114-10
dated April 16, 2015
6. What Does MACRA Do?
• Repeals the Sustainable Growth Rate
(SGR)
• Extends Children’s Health Insurance
Program (CHIP) funding for 2 years
• Creates 2 payment tracks
• Provides Annual Baseline Fee Schedule
Updates 2016-2018
6
Materials herein reflect public law 114-10
dated April 16, 2015
7. MACRA Timeline
2016 2017 2018 2019 2020 2021
2022-
2024
2025 2026
Medicare Part B Baseline Payment Updates
-.27% +0.5% +0.5% +0.5% 0% 0% 0%
+0.25%*
+0.75%**
*Non-qualifying APM Conversion Factor
**Qualifying APM Conversion Factor
+0%
7
Materials herein reflect public law 114-10
dated April 16, 2015
8. Payment Models
• Consolidates quality programs
Merit-Based Incentive Payment
System (MIPS)
• Potential for bonus payment for
participation
Alternative Payment Model
(APM)
8
Materials herein reflect public law 114-10
dated April 16, 2015
10. MIPS Highlights
Consolidates existing quality and value
programs
• To ease administrative burden
Establishes a Performance Score
• Adds a category for Clinical Practice
Improvement Activities
Opportunity for payment adjustments
• Both positive and negative
10
Materials herein reflect public law 114-10
dated April 16, 2015
11. Consolidates Quality & Value
Programs
11
• Physician Quality
Reporting System
• Value Based
Payment Modifier
• Meaningful Use
MIPS
MU
VBPM
PQRS
Materials herein reflect public law 114-10
dated April 16, 2015
13. Clinical Practice Improvement
Activities (CPIA)
• Access
• Population Management
• Care Coordination
• Beneficiary Engagement
• Patient Safety
• Participation in an
Alternative Payment Model
13
Materials herein reflect public law 114-10
dated April 16, 2015
14. Weighting by Category
2019 2020 2021
Quality 50% 45% 30%
Resource Use 10% 15% 30%
EHR MU 25% 25% 25%
CPIA1 15% 15% 15%
1 - “Certified” patient-centered medical home will receive the full 15 points for
CPIA
14
Materials herein reflect public law 114-10
dated April 16, 2015
15. “Certified” Patient-Centered
Medical Home (PCMH)
15
• Not defined in law
• Joint Principles of PCMH
• Functions of Comprehensive Primary Care
(CPC)
– Risk-Stratified Care Management
– Access and Continuity
– Planned Care for Chronic Conditions and
Preventive Care
– Patient and Caregiver Engagement
– Care Coordination Across the Medical
Neighborhood
Materials herein reflect public law 114-10
dated April 16, 2015
16. Annual Performance Threshold
• Established by Secretary years 1 and 2
• Mean or median of previous year’s MIPS
scores
• Below = negative payment adjustments
• Above = positive payment adjustments
16
Materials herein reflect public law 114-10
dated April 16, 2015
17. Adjust Payments
-4%
-5%
-7%
-9%
4%
5%
7% 9%
2019 2020 2021 2022 onward
“With respect to positive
MIPS adjustment
factors…the Secretary
shall increase or decrease
such adjustment factors by
a scaling factor in order to
ensure that the budget
neutrality requirement …is
met”
17
Materials herein reflect public law 114-10
dated April 16, 2015
19. Exemptions
19
• Year 1 Medicare
• Eligible APMs with Bonus
• Below low volume threshold
• Federally Qualified Health Clinics and Rural Health
Clinics
Materials herein reflect public law 114-10
dated April 16, 2015
20. Adjustment Summary
20
Performance Score Payment Adjustment
Lowest quartile =
Maximum negative
adjustment
At threshold = No adjustment
“Exceptional
Performers”
=
Eligible for up to 10%
positive adjustment
“Exceptional Performers” has yet to be defined
Materials herein reflect public law 114-10
dated April 16, 2015
21. MACRA Timeline
2016 2017 2018 2019 2020 2021
2022-
2024
2025 2026
Medicare Part B Baseline Payment Updates
-.27% +0.5% +0.5% +0.5% 0% 0% 0%
+0.25%*
+0.75%**
*Non-Qualifying APM Conversion Factor
**Qualifying APM Conversion Factor
Merit-Based Incentive Payment System (MIPS)
PQRS, Value-based Modifier, &
Meaningful Use
Quality, Resource Use, Meaningful Use, & Clinical Practice Improvement
Activities
-6% -9% -9%? +/-4% +/-5% +/-7%
+0%
+/-9%
21
Materials herein reflect public law 114-10
dated April 16, 2015
22. MIPS Summary
Composite Performance Score
• Consolidates existing quality reporting programs in
Medicare Part B with Clinical Practice Improvement
Activities
Positive payment adjustments
• Includes the potential for significant adjustments for
“Exceptional Performers”
Risk of payment penalty
• Risk of negative payment adjustment if performance
below threshold
22
Materials herein reflect public law 114-10
dated April 16, 2015
23. 10 or fewer
Combined
score
Geography
or Specialty
Written
agreement
One year
commitment
“All or
nothing”
23
Virtual
Groups
Materials herein reflect public law 114-10
dated April 16, 2015
25. Definitions
Qualifying APM
• Based on existing payment models
Eligible APM
• Based on criteria of the payment
model
Qualifying APM Participant
• Based on individual physician
payment or patient volume
25
Materials herein reflect public law 114-10
dated April 16, 2015
26. Qualifying APMs
26
• MSSP (Medicare Shares
Savings Program)
• CMS Innovation Center
Model*
• Demonstration under
Medicare Healthcare
Quality Demonstrations
(MHCQ) or Acute Care
Episode Demonstration
• “Demonstration required
by Federal Law”
Qualifying
APMs
Materials herein reflect public law 114-10
dated April 16, 2015
27. Eligible APMs
27
• Quality measures
comparable to MIPS
• Use of certified EHR
technology
• More than nominal
risk1 OR Medical
Home model under
CMMI authority
1 – Not yet defined
Qualifying
APMs
Eligible
APMs
Materials herein reflect public law 114-10
dated April 16, 2015
28. Qualifying APM Participant
28
• Percentage of
patients or
payments thru
eligible APM
• In 2019, the
threshold is 25% of
Medicare payments.
Patient threshold is
yet to be
determined.
Qualifying
APMs
Eligible
APMs
Qualifying
APM
Participant
Materials herein reflect public law 114-10
dated April 16, 2015
29. Additional Rewards for
Qualifying Participants
29
• Not subject to MIPS
• 5% bonus 2019-2024
• Higher fee schedule update 2026
Materials herein reflect public law 114-10
dated April 16, 2015
30. Summary of APMs
Qualifying APMs
• AAFP advocates for CMMI expansion to allow
greater participation
Eligible APMs
• “nominal financial risk”
Qualifying Participants
• Potentially more financial certainty with a 5%
annual bonus (and no potential for penalty)
30
Materials herein reflect public law 114-10
dated April 16, 2015
31. 31
Yes No
Am I in a Qualifying APM?
Materials herein reflect public law 114-10
dated April 16, 2015
32. 32
Yes No
Am I in an eligible APM?
Yes No
Am I in a Qualifying APM?
Materials herein reflect public law 114-10
dated April 16, 2015
33. 33
Yes No
Am I in an eligible APM?
Enough payments or patients?
Yes No
Yes No
Am I in a Qualifying APM?
Materials herein reflect public law 114-10
dated April 16, 2015
34. 34
Yes No
Am I in an eligible APM?
Enough payments or patients?
Yes No
Yes No
Am I in a Qualifying APM?
Qualifying APM Participant
5% bonus payment 2019-2024
Higher fee schedule 2026+
APM-specific rewards
Excluded from MIPS
Materials herein reflect public law 114-10
dated April 16, 2015
35. 35
Yes No
Am I in an eligible APM?
Enough payments or patients?
Yes No
Yes No
Am I in a Qualifying APM?
Subject to MIPS
Favorable MIPS scoring
APM-specific rewards
Materials herein reflect public law 114-10
dated April 16, 2015
36. 36
Yes No
Am I in an eligible APM?
Subject to MIPS
Favorable MIPS scoring
APM-specific rewards
Yes No
Am I in a Qualifying APM?
Materials herein reflect public law 114-10
dated April 16, 2015
37. 37
Yes No
1st year in Medicare OR
below low-volume threshold?
Not subject
to MIPS
Yes No
Am I in a Qualifying APM?
Materials herein reflect public law 114-10
dated April 16, 2015
38. 38
Yes No
1st year in Medicare OR
below low-volume threshold?
Subject to
MIPS
Yes No
Am I in a Qualifying APM?
Materials herein reflect public law 114-10
dated April 16, 2015
39. 39
Yes No
Am I in a Qualifying APM?
Yes No
Am I in an eligible APM?
Enough payments or patients?
Yes No
Qualifying APM Participant
5% bonus payment 2019-2024
Higher fee schedule 2026+
APM-specific rewards
Excluded from MIPS
Yes No
1st year in Medicare OR
below low-volume threshold?
Not subject
to MIPS
Subject to
MIPS
Subject to MIPS
Favorable MIPS scoring
APM-specific rewards
Materials herein reflect public law 114-10
dated April 16, 2015
40. MACRA Timeline
2016 2017 2018 2019 2020 2021
2022-
2024
2025 2026
Medicare Part B Baseline Payment Updates
-.27% +0.5% +0.5% +0.5% 0% 0% 0%
+0.25%*
+0.75%**
*Non-qualifying APM Conversion Factor
**Qualifying APM Conversion Factor
Merit-Based Incentive Payment System (MIPS)
PQRS, Value-based Modifier, &
Meaningful Use
Quality, Resource Use, Meaningful Use, & Clinical Practice Improvement
Activities
-6% -9% -9%? +/-4% +/-5% +/-7%
Qualifying APM Participant
5% Incentive payment
Excluded from MIPS
+0%
+/-9%
40
Materials herein reflect public law 114-10
dated April 16, 2015
41. Technical Assistance
41
• $20 million for
Technical
Assistance 2016-
2020
Materials herein reflect public law 114-10
dated April 16, 2015
42. Payment Reform Is Here
• Final regulations in 2016
• 2017 likely performance year for MIPS
– Advocating for 2018
• Help is available
42
Materials herein reflect public law 114-10
dated April 16, 2015
43. What Can I Do Right Now?
1. Evaluate your
practice
– Are you submitting
PQRS?
– Have you reviewed
your QRUR?
– Attested for
Meaningful Use?
– Ask the Expert -
aco@aafp.org
43
Materials herein reflect public law 114-10
dated April 16, 2015
44. What Can I Do Right Now?
2. Find a PTN
– Go to aafp.org/tcpi
– Click “Find a PTN”
to find a practice
transformation
network in your
area
– Email
tcpi@aafp.org with
any questions.
44
Materials herein reflect public law 114-10
dated April 16, 2015
45. Family Practice Management
Articles
45
FPM Journal Article -
http://www.aafp.org/fpm/2015/1100/p19.pdf
FPM Journal Article -
http://www.aafp.org/fpm
Materials herein reflect public law 114-10
dated April 16, 2015
46. AAFP.ORG/MACRA
• FAQs
• Timeline
• MIPS/APM
Comparison table
• Related articles
• Related links
46
Materials herein reflect public law 114-10
dated April 16, 2015