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HowDoesthe
MedicareAccess&
CHIPReauthorization
Actof2015(MACRA)
AffectFutureReimbursement?
Georgia Society of Clinical Oncology
2016 Annual Spring Administrator’s Association
Business of Oncology Meeting
Brian R. Bourbeau, Director, OHC
Learning Objectives
• Major provisions of MACRA
• Projecting future revenues
• MIPS vs. APMs
• Immediate steps to prepare
• Will MACRA survive?
What is MACRA?
• Public law, signed April 16, 2015
• SGR “fix”
• Set MPFS updates in perpetuity
• Sunsets Meaningful Use, PQRS, andVBM
• Creates Merit-based Incentive Payment System
• IncentivizesAlternative Payment Models
HHS Goals
85%
Quality &
Value
30%
APMs
90%
Quality &
Value
50%
APMs
2016Targets 2018Targets
Source: CMS
Source: CMS
MPFS
Payment
Adjustments
Conversion Factor
2016 2017 2018 2019 2020 2021
Medicare Access and
CHIP Reauthorization
Act of 2015 (MACRA)
Conversion
Factor
Update
+0.5% +0.5% +0.5% +0.5% 0% 0%
Protecting Access
to Medicare Act
of 2014 (PAMA)
Misvalued
Codes
-0.5% -0.5% -0.5% -0.5% 0%
Achieving a Better
Life ExperienceAct
of 2014 (ABLE)
Misvalued
Codes
-1.0%
Actual -0.3%
Source: CMS
“In the interest of broad-scale
payment reform, it is imperative
to exert downward pressure on
FFS-based payment rates.”
-The Population-Based PaymentWork Group, HCP LAN
Source: CMS
MPFS
Payment
Adjustments
2016 2017 2018
Meaningful Use -2% Penalty -3% Penalty -3% Penalty
PQRS -2% Penalty
+VBM Penalty
-2% Penalty
+VBM Penalty
-2% Penalty
+VBM Penalty
Value-Based
Modifier
2014 Performance
PQRS Reporters:
100+: -2% to 2x*
10-99: -0% to 2x*
Non-Reporters:
100+: -2%
10-99: -2%
2015 Performance
PQRS Reporters:
10+: -4% to 4x*
1-9: -0% to 2x*
Non-Reporters:
10+: -4%
1-9: -2%
2016 Performance
PQRS Reporters:
10+: -4% to 4x*
1-9: -2% to 2x*
Non-Reporters:
100: -4%
1-9: -2%
*Additional 1x available for groups with average risk score in top 25%
Existing Programs
Low
Quality
Average
Quality
High
Quality
Low
Cost 6 73 0 79
Average
Cost 644 7,351 55 8,090
High
Cost 39 226 1 266
689 7,650 56
Groups with 10 or more eligible professionals
2016Value Modifier
(2014 Performance)
5,418 did
not report
PQRS!
+15.9 –
+31.8%
Source: CMS
MPFS
Payment
Adjustments
Quality
Measures
50 » 45 » 30%
Resource
Use
10 » 15 » 30%
Meaningful
EHR User
25%
Clinical Practice
Improvement
15%
MIPS
Consensus Core Set 1.0
BreastCA
• Combo
chemo w/i 4
m; women
<70 y,T1c or
II/III,
hormone
negative
•HER2-
spared
trastuzumab
•HER2+ given
trastuzumab
T1c or II/III
ColorectalCA
• Chemo w/i
4m; <80 y,
Stage III
•KRAS
testing
performed;
mets w/
anti-EGFR
mAb therapy
•KRAS
mutated
spared
anti-EGFR
mAb therapy
ProstateCA
• Avoid
overuse of
bone scans
for staging
low risk
patients
•Radical
prostatec-
tomy
pathology
reporting
EndofLife
•Chemo w/i
last 14 days
•ED w/i last
30 days
•ICU w/i last
30 days
•% not
admitted to
hospice
•% admitted
to hospice <3
•Pain
intensity
quantified
Resource Use
Population Health Clinical Episodes
• All beneficiaries
• Per capita measurements
• Prospective risk adjustment
• PCP attribution
• Specialty-adjusted
• Mastectomy in breast cancer
• Prostatectomy
• Condition or treatment
triggers
• Acute and chronic conditions
• Varying duration
• Multiple physician
relationships
Population
Management
Expanded
Access
Beneficiary
Engagement
Patient Safety
& Practice
Assessment
Care
Coordination
Participation in an Alternative Payment Model
Clinical Practice Improvement
MIPS:What we Know
• “Incentive to Report”
– i.e. lowest potential score for not reporting.
• EHR meaningful use will be incorporated.
• Value-based payment modifier will be incorporated.
• Rewards certification as a medical home.
• Encourages participation in an alternative payment model.
• Scaling factor capped at 3 times that of negative adjustments.
• Exceptional performance, 2019-2024: up to +10% / $500 m
• Public reporting.
Source: CMS
Alternative Payment Models
• Section 1899 shared savings program.
• Section 1115A: OCM? Yes Innovation Award? No
• 1866C and other demonstration projects.
APM Participant
Minimum 50% score
on clinical practice
improvement score
Partially Qualifying
MIPS optional
2019-2020: 20%
2021-2022: 40%
2023+: 50%
Qualifying
MIPS excluded
5% incentive
2019-2020: 25%
2021-2022: 50%
2023+: 75%
Alternative Payment Models
Oncology
Care Model
• Oncology
Specific
• Greatest Chance
to Achieve
Qualifying Status
• Administrative
Burden
• Limits on
Business
Opportunities
MSSP ACO
Next
Generation
ACO
• Different
Participation
Levels
• Split-TIN
• Multiple
Payment
Models
• Accepting New
Applications in
Spring 2016
Source: CMS
Immediate Steps to Prepare
• Avoid 2018 penalties – PQRS, MU,VBM.
• Invest in an EHR that supports your quality &
practice improvement efforts.
• Investigate quality reporting options.
• Review your Quality & Resource Use Report.
• Explore ACO opportunities.
• Follow the HCP LAN (Health Care Payment Learning &Action Network).
• Comment on RFIs & proposed rules.
Meaningful
Value-Based
Program
More Penalties
than Incentives
= Reduced $$
Too Many
Penalties & the
End of MACRA
Will MACRA Survive?

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How Does the Medicare Access & CHIP Reauthorization Act of 2015 (MACRA) Affect Future Reimbursement?

  • 1. HowDoesthe MedicareAccess& CHIPReauthorization Actof2015(MACRA) AffectFutureReimbursement? Georgia Society of Clinical Oncology 2016 Annual Spring Administrator’s Association Business of Oncology Meeting Brian R. Bourbeau, Director, OHC
  • 2. Learning Objectives • Major provisions of MACRA • Projecting future revenues • MIPS vs. APMs • Immediate steps to prepare • Will MACRA survive?
  • 3. What is MACRA? • Public law, signed April 16, 2015 • SGR “fix” • Set MPFS updates in perpetuity • Sunsets Meaningful Use, PQRS, andVBM • Creates Merit-based Incentive Payment System • IncentivizesAlternative Payment Models
  • 4. HHS Goals 85% Quality & Value 30% APMs 90% Quality & Value 50% APMs 2016Targets 2018Targets
  • 7. MPFS Payment Adjustments Conversion Factor 2016 2017 2018 2019 2020 2021 Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) Conversion Factor Update +0.5% +0.5% +0.5% +0.5% 0% 0% Protecting Access to Medicare Act of 2014 (PAMA) Misvalued Codes -0.5% -0.5% -0.5% -0.5% 0% Achieving a Better Life ExperienceAct of 2014 (ABLE) Misvalued Codes -1.0% Actual -0.3%
  • 8. Source: CMS “In the interest of broad-scale payment reform, it is imperative to exert downward pressure on FFS-based payment rates.” -The Population-Based PaymentWork Group, HCP LAN
  • 10. MPFS Payment Adjustments 2016 2017 2018 Meaningful Use -2% Penalty -3% Penalty -3% Penalty PQRS -2% Penalty +VBM Penalty -2% Penalty +VBM Penalty -2% Penalty +VBM Penalty Value-Based Modifier 2014 Performance PQRS Reporters: 100+: -2% to 2x* 10-99: -0% to 2x* Non-Reporters: 100+: -2% 10-99: -2% 2015 Performance PQRS Reporters: 10+: -4% to 4x* 1-9: -0% to 2x* Non-Reporters: 10+: -4% 1-9: -2% 2016 Performance PQRS Reporters: 10+: -4% to 4x* 1-9: -2% to 2x* Non-Reporters: 100: -4% 1-9: -2% *Additional 1x available for groups with average risk score in top 25% Existing Programs
  • 11. Low Quality Average Quality High Quality Low Cost 6 73 0 79 Average Cost 644 7,351 55 8,090 High Cost 39 226 1 266 689 7,650 56 Groups with 10 or more eligible professionals 2016Value Modifier (2014 Performance) 5,418 did not report PQRS! +15.9 – +31.8%
  • 13. MPFS Payment Adjustments Quality Measures 50 » 45 » 30% Resource Use 10 » 15 » 30% Meaningful EHR User 25% Clinical Practice Improvement 15% MIPS
  • 14. Consensus Core Set 1.0 BreastCA • Combo chemo w/i 4 m; women <70 y,T1c or II/III, hormone negative •HER2- spared trastuzumab •HER2+ given trastuzumab T1c or II/III ColorectalCA • Chemo w/i 4m; <80 y, Stage III •KRAS testing performed; mets w/ anti-EGFR mAb therapy •KRAS mutated spared anti-EGFR mAb therapy ProstateCA • Avoid overuse of bone scans for staging low risk patients •Radical prostatec- tomy pathology reporting EndofLife •Chemo w/i last 14 days •ED w/i last 30 days •ICU w/i last 30 days •% not admitted to hospice •% admitted to hospice <3 •Pain intensity quantified
  • 15. Resource Use Population Health Clinical Episodes • All beneficiaries • Per capita measurements • Prospective risk adjustment • PCP attribution • Specialty-adjusted • Mastectomy in breast cancer • Prostatectomy • Condition or treatment triggers • Acute and chronic conditions • Varying duration • Multiple physician relationships
  • 17. MIPS:What we Know • “Incentive to Report” – i.e. lowest potential score for not reporting. • EHR meaningful use will be incorporated. • Value-based payment modifier will be incorporated. • Rewards certification as a medical home. • Encourages participation in an alternative payment model. • Scaling factor capped at 3 times that of negative adjustments. • Exceptional performance, 2019-2024: up to +10% / $500 m • Public reporting.
  • 19. Alternative Payment Models • Section 1899 shared savings program. • Section 1115A: OCM? Yes Innovation Award? No • 1866C and other demonstration projects. APM Participant Minimum 50% score on clinical practice improvement score Partially Qualifying MIPS optional 2019-2020: 20% 2021-2022: 40% 2023+: 50% Qualifying MIPS excluded 5% incentive 2019-2020: 25% 2021-2022: 50% 2023+: 75%
  • 20. Alternative Payment Models Oncology Care Model • Oncology Specific • Greatest Chance to Achieve Qualifying Status • Administrative Burden • Limits on Business Opportunities MSSP ACO Next Generation ACO • Different Participation Levels • Split-TIN • Multiple Payment Models • Accepting New Applications in Spring 2016
  • 22. Immediate Steps to Prepare • Avoid 2018 penalties – PQRS, MU,VBM. • Invest in an EHR that supports your quality & practice improvement efforts. • Investigate quality reporting options. • Review your Quality & Resource Use Report. • Explore ACO opportunities. • Follow the HCP LAN (Health Care Payment Learning &Action Network). • Comment on RFIs & proposed rules.
  • 23. Meaningful Value-Based Program More Penalties than Incentives = Reduced $$ Too Many Penalties & the End of MACRA Will MACRA Survive?