Physician Payment Reform

The passage of Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) repealed the Sustainable Growth Rate (SGR) and replaced it with two new payment update tracts, the Merit-based Incentive Payment System (MIPS) and CMS Alternative Payment Models (APMs). The MIPS and APM programs are scheduled to go into effect January 1, 2019.

MACRA created the MIPS to replace
the current CMS Quality Initiative
Programs. MIPS incorporates aspects
of several CMS quality programs into
a component score to determine physician payment.

Learn More about MIPS

APMs are a class of payment reform 
that incorporates quality and total
cost of care into reimbursement
rather than a traditional fee-for-service
structure.

Learn More about APMs

CMS Releases Post-SGR Payment Policy with MIPS and APM Final Rule
On October 14, CMS released the final rule, solidifying the details of the two new payment update tracks, the Merit-Based Incentive Payment System (MIPS) and Alternative Payment Models (APMs). These programs were created by the historic legislation that repealed the SGR, the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). In the final rule, CMS adjusted several key aspects of the program the Academy submitted comments last spring. Important changes to the program include:

  • Clinicians have the option to pick their pace with three reporting periods for MIPS:
    • Report one Quality, Advancing Care Information (ACI) or Clinical Practice Improvement Activity (CPIA) measure at any point in 2017.
    • Report MIPS measures for any consecutive 90 days in 2017 (must begin reporting by October 2, 2017)
    • Report MIPS measures for all of 2017 starting January 1, 2017.
  • The low volume threshold excluding clinicians from MIPS reporting was increased to “Medicare billing charges of more than $30,000, and provide care to more than 100 Medicare patients per year.”
  • For CY 2017 only, CMS eliminated Cost as a MIPS reporting category. In CY 2018, MIPS participants will receive cost scores based on adjudicated claims data.


The Academy is currently reviewing the final rule will release additional resources in the coming weeks through the News and HP Update.