What’s New for the Quality Payment Program in 2023 (2024)

Beginning in 2023, clinicians eligible for MIPS may choose to participate through a MIPS Value Pathway (MVP), which is a new, alternative reporting pathway to traditional MIPS. Whether you participate via traditional MIPS or an MVP, your score will continue to be calculated based on the following MIPS performance categories:

  • Quality: Aims to measure the quality of the care delivered
  • Improvement Activities (IA): Includes an inventory of activities that assesses how clinicians improve care processes, enhances patient engagement in care, and increases access to care
  • Promoting Interoperability (PI): Focuses on the use of certified electronic health record (EHR) technology (CEHRT) to manage patient engagement and the electronic exchange of health information
  • Cost: Evaluates a clinician’s total cost of care during the year, a hospital stay, or a specific episode of care for attributed patients (CMS automatically calculates the cost category using Medicare claims.)

An MVP includes a subset of measures and activities across the quality, IA, and cost performance categories focused on specific specialties, conditions, or patient populations. The framework also incorporates PI measures and a foundational set of population health-focused administrative claims-based quality measures that are foundational elements of all MVPs. For the 2023 performance year, clinicians can choose from 12 MVPs (see Table 1).

The current MVP framework relies on siloed performance categories and other restrictive elements of MIPS. However, the College continues to work with CMS to develop MVPs that reflect a more comprehensive quality framework, much like the ACS Quality Programs that focus overarchingly on the care of the patient, including the goals and outcomes important to the patient, while also valuing the infrastructure, resources, and processes needed to deliver optimal care and improvement.

How MVPs Are Scored

MVP scoring largely aligns with traditional MIPS. The performance category weights will remain consistent with what has been finalized for MIPS in 2023. The same reweighting policies also will be applied to MVPs.

Subgroup Reporting

Beginning in 2023, subgroup reporting will be an option for those reporting MVPs. Through subgroup reporting, multispecialty groups will have the option to create subgroups to report performance information that is relevant to specific specialists or care teams within the larger group. Although subgroup reporting is initially voluntary for MVP participants, beginning in 2026, multispecialty groups will be required to form subgroups to report MVPs.

Some stakeholders are concerned about the potential classification of a group with a single clinical focus as a multispecialty group and have asked how this impacts the requirement for multispecialty groups to form subgroups.

The ACS has advocated for CMS to use subgroup reporting to recognize team-based care. However, the College has opposed making subgroup and MVP reporting mandatory until physicians have had enough time to re-engineer how they report quality, determine the necessary structures and processes, incorporate safety and outcome measures, and make the business case for participating in MVPs and as a subgroup.

At this time, CMS has not yet proposed any limits on the composition of a subgroup other than restricting an individual clinician to only one subgroup within a group. The agency is exploring options for allowing clinicians to participate in multiple subgroups in the future. CMS also will provide additional guidance as appropriate in the future and consider additional policies to ensure that subgroups best represent clinical coherence.

MIPS Scoring Policies for 2023

Many MIPS scoring policies—which apply to both traditional MIPS and the new MVP framework—will remain the same from the 2022 performance period to the 2023 performance period. For 2023, the performance threshold, or the number of overall MIPS points required to avoid a payment penalty for the 2025 payment year, remains set at 75 points. However, beginning with the 2023 performance year, the exceptional performance bonus is no longer available. The performance category weights also are unchanged. Quality and cost both contribute 30% to the MIPS overall score, PI contributes 25%, and IA remains at 15%. Surgeons should refer to the ACS QPP resources for more details about the 2023 MIPS policies.

Note that MIPS-eligible clinicians will receive the highest final score that can be attributed to their Taxpayer Identification Number (TIN)/National Provider Identifier combination from any reporting option (traditional MIPS, APM Performance Pathway, or MVP) and participation option (individual, group, subgroup, or APM Entity), with the exception of virtual groups. Clinicians who participate as a virtual group always will receive the virtual group’s final score.

All surgeons should use the QPP Participation Status Lookup tool (qpp.cms.gov/participation-lookup) to determine if they are required to participate in MIPS in 2023, and if they fall into any special status categories (qpp.cms.gov/mips/special-statuses) such as facility-based, which could alter their reporting requirements.

New Policies for the Quality Category

CMS previously finalized the following policies, which will go into effect with the 2023 performance period:

  • Removal of the three-point floor for quality measures with a benchmark. Measures with a benchmark (unless surgeons are in their first 2 years of the MIPS program) will be worth between one and 10 points.
  • Measures without a benchmark will no longer be eligible for three points. If surgeons report a measure without a benchmark, they will receive zero points, unless the measure is new to the program or the surgeon is part of a small practice.
  • Measures that do not meet the case minimum (at least 20 patients) will no longer be eligible for three points. If surgeons report a measure that does not meet the case minimum, they will receive zero points, unless the measure is new to the program or the surgeon is part of a small practice.

CEHRT Changes for the PI Category

The PI category focuses on how clinicians use CEHRT to manage patient engagement and the electronic exchange of health information. To receive a score in this category, use of technology that is certified under the Office of the National Coordinator for Health IT’s certification program is required.

Beginning this year, MIPS-eligible clinicians and groups must use EHR technology to report PI that is updated to meet the requirements of the 2015 Edition Cures Update (healthit.gov/topic/certification-ehrs/2015-edition-cures-update-test-method). To find out if your EHR is federally certified in compliance with this update, search the Certified Health IT Product List (chpl.healthit.gov/#/search).

Maximum Payment Adjustments

As determined by the Medicare Access and Children’s Health Insurance Program Reauthorization Act of 2015 (MACRA), the maximum negative payment adjustment for the 2025 payment year based on 2023 performance is -9%. Because MIPS is a budget-neutral program, the total amount of funding available for positive payment adjustments cannot be determined until CMS knows the total amount of negative payment adjustments in any given year. It is important to keep in mind that the maximum positive payment adjustments to date have not exceeded 2.5% (payment adjustments were 1.88% in 2019, 1.68% in 2020, 1.79% in 2021, and 2.33% in 2022).

Advanced APMs

Clinicians who receive a substantial portion of their reimbursem*nt or see a substantial number of patients under what CMS designates as an advanced APM are considered qualifying participants (QPs).

Advanced APMs bear more than nominal risk and must have a certain percentage of their participating clinicians using CEHRT. For 2022, QPs are exempt from MIPS and instead qualify for a lump sum bonus payment in 2024, based on 5% of their Part B allowable charges for covered professional services in 2023 (across all TINs they may practice under, which can result in a substantial bonus).

However, under MACRA, the 5% incentive payment ends after the 2022 performance year (2024 payment year). Going forward, QPs instead will be eligible for a larger annual base conversion factor update under the Medicare Physician Fee Schedule (0.75%) compared to non-QPs (0.25%), who also may be eligible for MIPS payment adjustments.

Starting in 2023, the payment and patient thresholds to qualify as a QP also increase, which will make it more challenging for clinicians to qualify for this track of the QPP. The ACS continues to push Congress for an extension of the 5% APM incentive payment and to maintain the current thresholds.

What’s New for the Quality Payment Program in 2023 (2024)

FAQs

What’s New for the Quality Payment Program in 2023? ›

For 2023, the performance threshold, or the number of overall MIPS points required to avoid a payment penalty for the 2025 payment year, remains set at 75 points. However, beginning with the 2023 performance year, the exceptional performance bonus is no longer available.

What is the final rule for the quality payment program in 2023? ›

The Final Rule established a minimum performance threshold of 75 MIPS points for the 2023 performance year. CMS continues to use the mean final score from the 2017 performance year to establish the performance threshold.

What does the quality payment program include? ›

The Quality Payment Program (QPP) aims to reward high-value, high-quality Medicare clinicians with payment increases, while reducing payments to those clinicians who aren't meeting performance standards.

What changes has CMS proposed for 2024? ›

Beginning January 1, 2024, CMS is finalizing implementation of a separate add-on payment for healthcare common procedure coding system (HCPCS) code G2211. This add-on code will better recognize the resource costs associated with evaluation and management visits for primary care and longitudinal care.

What are the changes in MIPS 2024? ›

New for 2024: Beginning with the 2024 performance period, you'll need to report performance data for at least 75% of the denominator eligible cases for each quality measure (data completeness), which is an increase from the previous data completeness threshold of 70%.

What is the new Medicare fee schedule for 2024? ›

Due to budget neutrality rules, the 2024 physician fee schedule includes a 3.4% payment cut that will take effect unless Congress acts to stop the cut. In the final fee schedule, the 2024 Medicare conversion factor was decreased from $33.8872 to $32.7375, with a corresponding reduction in anesthesia rates.

What are the CMS payment changes for 2023? ›

CMS has implemented the new legislation by adjusting the CY 2023 CF of $33.07 by 2.93 percent and the budget neutrality adjustment for a CY 2024 CF of $33.29 for dates of service March 9 through December 31.

What is the 2 midnight rule? ›

The two-midnight rule is used when a clinician believes that a Medicare beneficiary needs hospital care that will likely eclipse two midnights—requiring inpatient care instead of cheaper outpatient care, Regan Tankersley, an attorney at the law firm Hall Render who advises healthcare systems, told Healthcare Brew.

What is the new rule for Medicare in 2025? ›

In 2025, after paying the initial deductible, a person on Medicare will pay 25 percent of drug costs. They will not spend more than $2,000 a year in out-of-pocket costs for their prescription medications.

What is the two-midnight rules in 2024? ›

The two-midnight rule requires patients to be admitted as an inpatient if the treating clinician determines they require hospital care that extends beyond two midnights — rather than being held under observation status as an outpatient.

What happens if you don't do MIPS? ›

Unless you qualify for an exemption from MIPS in 2023, you will receive a -9% payment adjustment to your Medicare Part B fee-for-service (FFS) claims in 2025.

How much can MIPS adjust payments? ›

The 2024 MIPS payment adjustments vary between -9% and +8.25%. A perfect score of 100 MIPS points would result in a positive payment adjustment of +8.25%.

Am I exempt from MIPS? ›

Current examples of APMs are Accountable Care Organizations (ACO), Patient Centered Medical Homes, and bundled payment models. Otherwise eligible clinicians or groups will be exempt from MIPS reporting if they bill ≤ $90,000 or provide care for ≤ 200 Medicare Part B patients.

What is the final rule for Mpfs 2023? ›

On Nov. 1, the Centers for Medicare and Medicaid Services released its calendar year 2023 Medicare Physician Fee Schedule final rule. Key elements of the rule are summarized below. ID physicians are expected to receive 4% overall increase in payments under the proposal, while most other specialties are facing cuts.

What is the final rule for CMS PFS 2024? ›

On November 2, 2023, the Centers for Medicare & Medicaid Services (CMS) issued the calendar year (CY) 2024 Medicare Physician Fee Schedule (PFS) final rule that includes changes to the Medicare Shared Savings Program (Shared Savings Program) to further advance CMS' overall value-based care strategy of growth, alignment ...

What is the final rule for RPM? ›

The Medicare final rule 2024 emphasizes that RPM services can only be furnished to “established patients.” This distinction, reinstated after the Public Health Emergency (PHE), requires patients who started RPM services during the PHE to become “established patients.” Those initiating RPM services after May 11, 2023, ...

What is the QP threshold for 2024? ›

The QP payment amount thresholds are the following values for the indicated payment years: (i) 2019 and 2020: 25 percent. (ii) 2021 and 2022: 50 percent. (iii) 2023 and 2024: 50 percent.

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