Medicare's current quality reporting programs are being consolidated and streamlined into 1 merit-based incentive payment system, referred to as "MIPS." This consolidation will reduce the aggregate level of financial penalties physicians otherwise could have faced, and it also provides a greater potential for bonus payments.
Modification of the Fee-for-Service System
Establishment of the MIPS program provides an opportunity to revise, rework and improve the existing Medicare programs focused on quality, costs and use of electronic health records to improve their relevance to real-world medical practice and reduce administrative burdens for physicians.
Under this payment system, physicians will no longer face the threat of double-digit cuts each year, as they did under the now-repealed sustainable growth rate. There will be greater certainty in annual payment updates.
MIPS components include:
- Quality—replaces Physician Quality Reporting System (PQRS) program
- Cost—replaces value-based modifier (VBM) program
- Advancing Care Information (ACI)—replaces Meaningful Use (MU) program
- Improvement activities (new component)—View finalized improvement activities from the final rule issued by the Centers for Medicare & Medicaid Services.