3. Source: CMS, “2013 Annual Report of the Boards of Trustees of the
Federal Hospital Insurance
and Federal Supplementary Medical Insurance Trust Funds,” May 31,
2013, available at:
http://downloads.cms.gov/files/TR2013.pdf;
Projected Medicare Fee-for-
service Payment Cuts per
the ACA
2014 2015 2016 2017 2018 2019 2020
Projected number of Medicare
beneficiaries
54M 56M 57M 59M 61M 63M 64M
-14B -21B -25B -32B -42B -53B -64B
Source: CMS, “2013 Annual Report of the Boards of Trustees of the Federal Hospital Insurance
and Federal Supplementary Medical Insurance Trust Funds,” May 31, 2013, available at: http://downloads.cms.gov/files/TR2013.pdf
4. FFS versus FFV
Eliminates incentive
to increase volume
Eliminates incentive
to provide high-cost
services over equally
effective low-cost
services
Quality-based incentives
Shared risk
Emphasizes the role of
primary care providers
Encourages
coordination of care
Fees billed per units of
service
Income maximized
through volume
No penalty for poor
quality
Providers lose money if
they reduce
unnecessary services
Volume
Driven
Health Care
Value-
Based
Health Care
Fee-for-service Value-based
payments
5. • Medicare Access and CHIP
Reauthorization Act (MACRA)
signed into law April 16th, 2015
• Repealed the flawed
sustainable growth rate (SGR)
formula
• Extends Children’s Health
Insurance Program (CHIP) for
two years
• New two-track Medicare
physician payment system
emphasizing value-based
payment models
Landmark legislation alters how
Medicare reimburses physicians
8. 8
QPP
APM
MIPS Merit-based Incentive
Payment System
combination of MU, PQRs, VM, and new CPIA
Alternative Payment Model
Quality Payment Program
the overarching name that covers MIPS and
APM tracks
CPS MIPS composite
performance score
10. 10
MU PQRS VMMIPS
Merit-Based Incentive Payment System
Consolidates three existing programs, adds in
additional performance category
APM
Alternative Payment Models
Incentive payments available to qualified and eligible
APM
1
2
11. 11
MIPS Eligibility – Years 1 and 2
• Physicians (MD/DO and DMD/DDS)
• PAs
• NPs
• Clinical nurse specialists
• CRNs
• Anesthetists
• Groups (defined by TIN) that include such
clinicians
12. 12
MIPS Eligibility – Years 3+
• Physical or occupational therapists
• Speech-language pathologists,
• Audiologists,
• Nurse midwives
• Clinical social workers
• Clinical psychologists
• Dietitians/Nutritional professionals
14. 14
Three clinician groups not subject to MIPS
Exclusions
ECs can volunteer to reporting but won’t receive any money
Has not submitted
claims under any
group prior to
performance period
Qualifying
participants (QPs)
Partial qualifying
participants who opt
not to report MIPS
<$10k in
Medicare billing
AND
≤ 100 Part B enrolled
beneficiaries
Newly enrolled
Medicare clinicians
APM participantsLow threshold
NOTE: MIPS does not apply to hospitals or facilities
16. Category weight varies over time
16
25 25 25
15 15 15
10 15
30
50 45
30
2019 2020 2021+
Four Categories That Determine MIPS Score Relative Weight Over Time
Quality
Resource Use
Clinical practice improvement
activities (CPIA)
Advancing Care Information
(ACI)
18. 18
Quality
(currently PQRS)
1
• 6 measure selection
• 1 cross-cutting measure and 1 outcome measure,
or another high priority measure if outcome is
unavailable
• Select from individual measures or a specialty
measure set
• Population measures automatically calculated
• Providers and groups measured and graded
against the performance of their peers
20. 20
Advancing Care Information
(currently EHR Incentive or MU)
2
• Scoring based on key measures of patient
engagement and information exchange
• Flexible scoring for all measures to promote care
coordination for better patient outcomes
• Points are awarded based on performance; only
the highest performers will be able to earn full
credit
22. 22
Clinical practice
improvement activities
3
New category
• Minimum selection of one CPIA activity (from 90+
proposed activities) with additional credit for more
activities
• Full credit for patient-centered medical home
(PCMH)
• Minimum of half credit for APM participation
• Activities are weighted as High or Medium weight
with corresponding points
24. 24
Resource Use
(currently VM)
4
• Medicare claims; no reporting
• Minimum thresholds of 20 patients/cases
• Adjusted for geographic payment, beneficiary risk factors
Total per capita cost measure (part A+B across VM chronic
conditions for COPD, CHF, CAD, DM) as seen in VM with slight
modification
• Expanded list of primary care services to include TCM, CCM
• Excluded SNF
MSPB measure as seen in VM with slight modifications
Episode-based measures (41 across specialties)*
1
2
3
25. MIPS has different set of “rules” and scoring
going forward
Weighting of Cost & Quality categories will change over time with Quality declining and Cost increasing (from 10% to 30% by 2019)
Source: CMS
25
Category
Weight
(Year 1)
Scoring
Quality 50%
• Each measure 1-10 points compared to historical benchmark
• 0 points for a measure that is not reported
• Bonus for reporting outcomes, patient experience, appropriate
use, patient safety and EHR reporting
• Measures are averaged to get a score for the category
Advancing Care
Information
(ACI)
25%
• Base score of 50 percentage points achieved by reporting at
least one use case for each available measure
• Performance score of up to 80 percentage points
• Public Health Reporting bonus point
• Total cap of 100 percentage points available
Clinical practice
improvement
activities (CPIA)
15%
• Each activity worth 10 points; double weight for “high” value
activities; sum of activity points compared to a target
Resource Use 10% • Similar to quality
26. Composite performance score calculation
26
A single MIPS composite performance score will factor in
performance in 4 weighted performance categories on a 0-
100 point scale
Quality
Resource
Use
CPIAACI
MIPS Composite
Performance Score (CPS)
27. Payment adjustment scale has more
complexity, less middle ground
27
Demonstrative only
MIPS Budget-neutral program, 2019 payment based on 2017 performance
CPS Threshold has not yet been released
CMS estimates only 0.3% of providers will have a score exactly equal to the CPS threshold
Provider payment adjustment
Based on distance from CPS Threshold score
(Example)
CPS Threshold - 60
Lowest
quartile or
non
reporters get
flat 4%
downward
adjustment
0 10 20 30 40 50 60 70 80 90 100
14
12
10
8
6
4
2
0
-2
-4
-6
All providers with
<60 CPS receives
downward adjustment
All providers with
>60 CPS receive an
upward adjustment
Payment Adjustment (%) Payment Adjustment (%) (high performers)
28. -1% +1%
Payment adjustment will increase over time
28
30%
20%
10%
0%
-10%
PaymentAdjustment
-4%
4%
12%
2019
-5%
5%
15%
2020
-7%
7%
21%
2021
-9%
9%
27%
2022
High
performers
eligible for
additional
incentive
Budget neutrality
adjustment: Scaling
factor
up to 3x may
be applied
to upward
adjustment to ensure
payout pool equals
penalty pool
Non-reporting
groups given
lowest score
30. 30
Fast timeline for clinicians to follow
MACRA Implementation Timeline
2016 2017 2018
Today
Final Rule
Released
Providers may not be certain
which track they will fall into
when reporting in 2017
Not much
time for
many
providers
to get
involved in
QPP
Performance period
Providers notified of
track assignment
Payment adjustment
Based on
Merit Based
Incentive Payment
System (MIPS)
Advanced
Alternative
Payment Models
(APM)
Preparing Performing Reporting Payment
Starts
January 1st, 2017
Source: CMS
31. Payment adjustments vary with different
sizes of clinician groups
31
87.00%
69.90%
59.40%
44.90%
18.30%
45.50%
12.90%
29.80%
40.30%
54.50%
81.30%
54.10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Solo 2-9 10-24 25-99 100 or more Overall
CMS Estimated Penalties and Bonuses in 2017,
By Practice Size
Percent likely to be penalized Percent likely to receive bonus
32. 32
Historically, our clients perform better.
Meaningful Use
Stage 2 attestation
% of HCPs avoiding
PQRS penalties in 2015
NATIONAL
AVERAGE
60%
ATHENAHEALTH
CLIENTS
93.6%
NATIONAL
AVERAGE
33%
ATHENAHEALTH
CLIENTS
98.2%MU and
PQRS
Client
Guarantee
34. athenaNet provider performance on Meaningful Use
Stage 2 measure: Use Secure Electronic Messaging
NETWORK WIDE CHANGES:
1. NEW FUNCTION: Now easier for practices to
register patients to the patient portal.
2. FUNCTION UPDATE: Now easier for providers to
send patients secure messages through the
patient portal.
100%
90%
80%
70%
OCT. 2014 NOV. 2014 DEC. 2014
41. APM Entity
CPS
CPIA
EC
The TIN(s) participating in an
APM or Advanced APM
Clinical Practice Improvement Activities
MIPS composite performance score
Eligible Clinician, the new definition of
professionals who fall under this category
under MACRA
42. MIPS
QPP
QP
Partial QP
Merit Based Incentive Payment System,
the combination of MU, PQRS, VM and
new CPIA
Qualifying APM Participant
Quality Payment Program, the overarching
name that covers MIPS and APM tracks
Partial Qualifying APM
participants
Editor's Notes
Welcome and introduction
It’s pretty clear that the government has fundamentally shifted the way our country provides health care since the arrival of the Affordable Care Act in 2010. Within recent years, these changes are specifically felt in how providers are reimbursed for giving care. But, what is the real reason prompting all these changes?
Well, the number of Medicare beneficiaries continues to grow, payer reimbursements are a huge target for Medicare cuts to try and offer a solution to a cumulating financial problem. Rather than cutting public payer programs altogether, the government has decided to tie payments to the demonstration of quality rather than just cut public payer programs altogether. It is by the Affordable Care Act, the government continues to move toward a consistent delivery of quality care.
As you can see the number of Medicare beneficiaries has been and will continue to increase exponentially over the next five to ten years, mostly driven by the “baby-boomers” hitting the retirement age. So as to not bankrupt the country, the Medicare fee cuts have to be cut just as much to compensate. As a result the payment system is shifting from fee-for-service to fee-for-value
The big shift is moving from what is known as a “fee-for-service” environment to a “fee-for-value” environment, or “value based”. These value based payments are very different in that they really incentivize quality based care. Instead of high volume where money is made from providing more care, it is all about high quality, where payments come from the type of care that is provided.
And this shift happened in a big way last year. On April 16th, the Medicare Access and CHIP Reauthorization Act (MACRA), H.R. 2 was signed into law. While this law permanently repealed the flawed sustainable growth rate (SGR) formula, the new legislation included a small addition that has huge repercussions on the Medicare framework for paying physicians called MACRA.
Sources: http://www.familydocs.org/payment-reform/macra
https://www.acponline.org/advocacy/where_we_stand/assets/macra_handout_need_to_know_2015.pdf
Image source: http://www.healthcarefinancenews.com/news/icd-10-debate-hits-washington-most-prepared-worry-persists
New legislation, rulings, announcements, proposals, and constant changes from the government surrounding the healthcare community… Just remembering all these developments can feel a bit like you’ve wandered off the path into uncharted territory, especially now that you’re put in the position of needing to know more about new reporting and documentation measures than ever before.
Image source: https://www.flickr.com/photos/33346716@N03/8036177029
Before we dive into these measures, there are a whole score of new acronyms that have come out of the MACRA legislature, adding to what already might have felt like an “acronym soup”.
The four pertaining most to our conversation today are the following
Okay, now let’s take a deeper look into what MIPS is all about and how this will affect ECs going forward from 2017 on.
So, under MACRA, two new systems of payment are set to begin in 2017. Both methods allow practices to be awarded incentives for providing improved care. The first option is MIPS, or the merit-based incentive payment system. MIPS combines the MU, PQRS, and VM programs will all merge into one system with adjustments for that year implemented in 2019.
The second track is the option to become an Alternative Payment Model Entity. APMs are for clinicians who can demonstrate that a significant portion of their revenue comes from two-sided risk contracts and who utilize a certified EHR technology.
The MIPS ECs will include those listed here.
Secretary may broaden Eligible Clinicians group to include others
Despite the previous list of eligibility, CMS states that all ECs will report MIPS in 2017. CMS will then determine which ECs are excluded from MIPS due to APM, low volume threshold or new to Medicare. This means about 90% of providers in country will be performing in MIPS in 2017 based on CMS 2019 payment adjustment estimation. This leaves less than 10% of providers, to become QPs through Advanced APMs and receive incentive payments for 2019.
Even so, there are three groups not subject to MIPS. ECs excluded from MIPS include newly Medicare-enrolled eligible clinicians, clinicians that fall under the proposed low-volume threshold (<$10k Medicare charges AND <= 100 Medicare patients), Qualifying APM Participants (QPs), and certain Partial Qualifying APM Participants (Partial QPs). Hospitals are not affected by this rule and hospital-based MIPS eligible clinicians are not required to participate in the information technology portions of MACRA, since they may not have direct control over the software implemented by the hospital.
There are four performance categories under MIPS.
The first performance category is quality, what the currently program of PQRS will shift into.
Select from individual measures or a specialty measure set
50% weighting for the first performance year and reduces to 30% by 2019 performance year
6 individual measures or measures from a specialty-specific set with at least 1 cross cutting measure and outcome measure
- if an outcome measure is not available, then report one other ‘high priority’ measure (appropriate use, patient safety, efficiency, patient experience, care coordination)
specialty-specific measures sets are the same measures that are within the individual set, they are just sorted for ease of identifying potential measures for an EC’s specialty
Minimum reporting must contain at least 1 quality measure for at least 1 Medicare patient
Reporting threshold:
third party vendors (EHR, Registry) - 90% of EC’s or group’s patients for ALL payers
claims and Web Interface - 80% of EC’s or group’s patients for Medicare Part B
If an EC has less than 12 months of data, they would report partial year (examples provided: illness, maternity leave)
Year 1 weight: 50%
The second performance category is Advancing Care Information, which is evolving out of the EHR Incentive or Meaningful Use.
Year 1 weight: 25% and remains consistent
The third performance category is clinical practice improvement activities, a totally new program.
The last performance category is Resource Use, currently known as the Value-based Modifier, or VM.
Year 1 weight: 10%
Total per capita cost measure (part A+B across VM chronic conditions for COPD, CHF, CAD, DM) as seen in VM with slight modification
Expanded list of primary care services to include TCM, CCM
Excluded SNF
MSPB measure as seen in VM with slight modifications
remove specialty adjustment
edit the expected to cost calculation and average such that each episode is considered for observed/expected (current is sum observed/agg sum expected)
The MIPS composite performance score will factor in performance in 4 weighted performance categories on a 0-100 point scale :
Unified scoring system:
Converts measures and activities to points
ECs will know in advance what they need to do to achieve top performance
Partial credit available
https://www.cms.gov/Medicare/Quality-Initiatives-Patient-Assessment-Instruments/Value-Based-Programs/MACRA-MIPS-and-APMs/Quality-Payment-Program-MACRA-NPRM-Slides.pdf
In order to calculate your CPS, scorings from each category must be added up
MIPS composite performance scoring method that accounts for:
Weights of each performance category
Exceptional performance factors
Availability and applicability of measures for different categories of clinicians
Group performance
The special circumstances of small practices, practices located in rural areas, and non-patient-facing MIPS eligible clinicians
CPS: payment adjustment (pre threshold raises at 0.89 pts/CPS pt; post threshold raises at 0.1 pts/CPS pt; additional raises at 0.325 pts/CPS pt above CPS of 71)
20: -3.56
30: -2.67
40: -1.78
50: -.89
60: 0
70: 1
80: 2 + additional 3.4
90: 3 + additional 6.99
100: 4 + additional 10
For VM, adjustment was at TIN level no matter what
MIPS payment adjustment is at TIN/NPI- more control over own destiny as long as you submit individually
Because there is an option under MIPS, athena can use this as a value-add for our clients
The payment adjustments for MIPS has gone through an overhaul and is completely new. Unlike previous CMS programs, like VM, where a majority of groups that fell into an average quality & cost performance (no payment adjustment in the 9-box grid), under MIPS only providers exactly at Composite Performance Score (CPS) threshold will see NO payment adjustment. For 2019, only 0.3% of ECs will receive that 0% adjustment (2,527 clinicians out of 761,342).
Providers 1 point above the threshold will receive a bonus, 1 point below the threshold will receive a penalty. The further a provider’s CPS is below the threshold, the larger the penalty, up to a 4% max in 2019.
A MIPS EC’s payment adjustment percent
So, with all that in mind, how best to prepare for 2017, the start of the new MACRA performance period?
In just about 6 more months, the final rule is slated to come out in November with solidified details on reporting for both tracks under the new Quality Payment Program, QPP, from MACRA. But this means preparation has to start as soon as possible, making learning all that you can before very important.
Once January 1st, 2017 hits, you’ll need to dive right into performing and then reporting going forward.
How we prepare on behalf of prospects/clients
actual payment adjustments won't vary, it is just that the estimated % of providers getting the payment adjustment will vary
CMS estimates that 45.5% of ECs will be subject to negative payment adjustment; 60% of groups under 25 clinicians
CMS EC distribution by size
solo: 13.5% (ATHN 19.5%)
2-9: 16.2% (ATHN 29.8%)
10-24: 10.7% (ATHN 19.2%)
25-99: 19.4% (ATHN 20.9%)
100+: 40.1% (ATHN 10.5%)
something important to call out is that this includes ACO groups who currently do not need to report PQRS but would be included in MIPS in 2017
2016 VM results indicated that 5418/13813 (39%) received automatic penalty for failure to report data 59% of all EPs are neutral (98% of those who reported). 0.7% of reported get downward and 1.5% of reported get upward
Unfortunately, CMS has designed this program so half of ECs are below threshold in Year 1. They estimate about 45.5%, so almost half, of ECs to receive a penalty based on their Year 1 MIPS performance. Especially if you’re a small practice, as CMS has also estimated that most are most likely to “fail” in Year 1 of QPP.
CMS estimates that 87% of solo practitioners will see a negative adjustment whereas only 18.3% of groups with 100 or more eligible clinicians will be penalized. Conversely, 81.3% of groups with 100 or more eligible clinicians will see upward adjustment in 2019.
It is worthwhile to note that practices with <15 ECs get a break with only needing 2 activities (weighted 30pts. each)
Considering our track record, we feel more than confident in our ability to help our providers to stay on track with all that comes with the MACRA ruling.
Feeling really good about this, historical evidence, speak to what’s coming
We provide real time visibility into how you’re doing. In fact, we are already at work estimating our clients current performance under the proposed requirements.
We are able to use our web-based solution to push solutions out in real time for our client across the whole network. We did this back in 2014 to ensure that our clients could easily meet the MU requirement for Secure Messaging via product functionality.
CMS has estimated a significant cost and amount of time it will take for clinicians to report under MIPS categories. athena is prepared to tackle all the busy work for you.
We will also select the measures for you just as we have done before for PQRS and MU and we will make sure our selections align with your practice best.
All the work we do is to allow for the real work to happen
athena is in the unique position to deliver results to our clients even now.