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The Impact of Changes in Medicare's Physician Payment System on Critical Care
Abstract:
In 2015 President Obama signed the Medicare Access and CHIP Reauthorization Act (MACRA) which repealed the Sustainable Growth Rate (SGR) mechanism for Medicare physician reimbursement and mandated that CMS develop alternative payment methodologies to "reward health care providers for giving better care not more just more care." MACRA makes 3 major changes to Medicare reimbursements: (1) it ends the SGR formula; (2) it establishes a new framework to reward physicians based on performance and health outcomes rather than volume; and (3) it aims to combine existing quality reporting programs into one streamlined system. Beginning in 2019, physicians must enter one of two new tracks for payment: the Merit-based Incentive Payment System (MIPS) or Alternative Payment Models (APMs). SCCM has a unique opportunity as the largest multidisciplinary critical care organization to comment upon and, ideally, to help develop the new physician payment models specifically for critical care services. The time is now for SCCM and its individual members to become involved in the process.
Insights
The Medicare Access and CHIP Reauthorization Act (MACRA) changes physician reimbursement by ending the Sustainable Growth Rate (SGR) and introducing performance-based payment models like MIPS and APMs.
Area of Science:
- Health Policy
- Medical Economics
Background:
- The Sustainable Growth Rate (SGR) mechanism for Medicare physician reimbursement has been repealed.
- The Medicare Access and CHIP Reauthorization Act (MACRA) mandates new payment models focusing on care quality over volume.
Purpose of the Study:
- To inform critical care stakeholders about the significant changes introduced by MACRA.
- To highlight the opportunity for the Society of Critical Care Medicine (SCCM) to influence new payment models for critical care.
Main Methods:
- Analysis of the legislative changes mandated by MACRA.
- Identification of the key components of the new Medicare physician payment framework.
- Assessment of SCCM's role in shaping critical care payment policies.
Main Results:
- MACRA replaces the SGR with a focus on value-based care.
- Physicians will transition to either the Merit-based Incentive Payment System (MIPS) or Alternative Payment Models (APMs) starting in 2019.
- Existing quality reporting programs will be consolidated.
Conclusions:
- SCCM and its members have a critical opportunity to engage in developing new payment models for critical care.
- Proactive involvement is essential for ensuring that critical care services are appropriately valued under the new framework.
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