Merit-Based Incentive Payment System (MIPS):
• Under MIPS, Medicare has consolidated and expanded three pay-for-performance
programs—Meaningful Use, the Value-Based Payment Modifier, and the Physician Quality
Reporting System (PQRS) — into a single revenue-neutral program (taking money from low
performers and giving it to high performers). Under this program, CMS will score providers
on their performance in four categories: Quality, Cost, Improvement Activities, and
Advancing Care Information (IT). Starting in 2019 (based on performance this year, 2017),
providers will face a range of payment adjustments, starting with potential penalties of -4%
and bonuses as high as 12%. These penalties and bonuses will grow to payment reductions as
much as -9% and increases of up to 27% after the first few years of the program.
If I participate in McLeod Healthcare Network, which track will I fall under for MACRA?
McLeod Healthcare Network is applying for Track 1 of the MSSP which is considered an APM, but not
an Advanced APM because we are not taking on downside risk. While we won’t earn the 5% Advanced
APM bonus, we will qualify for favorable scoring within the MIPS track through the “APM Scoring
Standard.” McLeod Healthcare Network will report to CMS as an aggregate entity and all participating
providers will receive the same (likely very favorable) score. Under the APM Scoring Standard, MSSP
Track 1 participants are not scored on Cost. In 2018, McLeod Health Network’s score will be weighted
50% on quality, 20% on Improvement Activities, and 30% on Advancing Care Information. Due to
participation in MSSP Track 1, we will automatically receive full credit in the Improvement Activities
category and, based on McLeod Health’s past performance, will do very well under the other categories.
Since MIPS is a competition against all other providers in the country, a higher performance score will
result in a more favorable Medicare payment adjustment for participating providers.
What happens if I do not participate in the Medicare Shared Savings Program (MSSP)?
If you choose not to participate in the McLeod Healthcare Network’s MSSP, your practice must develop
its own MIPS quality reporting strategy and will not access preferential scoring. If you do not join the
MSSP by 2019, the cost category will comprise 30% of your performance score (based on your
performance managing per capita costs, Medicare spending per beneficiary and costs for several episodic
bundles) and you will have to report on Improvement Activities. Additionally, you would not receive
the comprehensive data set from Medicare that provides insight into your patients’ utilization patterns.
CMS will allow practices to join our MSSP on an annual basis and we hope you will consider joining
the program at a future date.
What do I need to do and how much time will this require?
To participate in the Medicare Shared Savings Program in 2018, your practice (defined by the
Taxpayer ID Number (TIN) that you use to bill Medicare) will have to sign a Participation Agreement by
July 25th. If you don’t participate in the MSSP, you may still participate in the development of the CIN
and join MSSP at a later date. When the CIN is operational, providers will collaborate to develop and
share best practices, with a goal of advancing quality and outcomes and coordinating care for patients
within the network. To enable individual and network-wide performance analytics, your practice
will also share clinical and demographic data with the CIN. The amount of time required
will depend on availability of data and your level of involvement in leadership and
governance, which is at your discretion.