CMS Innovation and Health Care Delivery System Reform
Maine Chapter of the American Health Information Management Association
March 17, 2 016
Andy Finnegan CMS RO1
CMS Innovation and Health Care Delivery System Reform Maine Chapter - - PowerPoint PPT Presentation
CMS Innovation and Health Care Delivery System Reform Maine Chapter of the American Health Information Management Association March 17, 2 016 Andy Finnegan CMS RO1 Better. Smarter. Healthier. So we will continue to work across sectors and
CMS Innovation and Health Care Delivery System Reform
Maine Chapter of the American Health Information Management Association
March 17, 2 016
Andy Finnegan CMS RO1
So we will continue to work across sectors and across the aisle for the goals we share: better care, smarter spending, and healthier people.
CMS support of health care Delivery System Reform will result in better care, smarter spending, and healthier people Key characteristics
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Systems and Policies
Systems
Key characteristics
Systems and Policies
Public and Private sectors
Evolving future state Historical state
Improving the way providers are incentivized, the way care is delivered, and the way information is distributed will help provide better care at lower cost across the health care system.
Delivery System Reform requires focusing on the way we pay providers, deliver care, and distribute information
Pay Providers
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Source: Burwell SM. Setting Value-Based Payment Goals ─ HHS Efforts to Improve U.S. Health Care. NEJM 2015 Jan 26; published online first.Deliver Care Distribute Information
FOCUS AREAS
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What is “MACRA”?
The Medicare Access and CHIP Reauthorization Act of 2015 (MACRA) is a bipartisan legislation signed into law on April 1 6, 2015. What does Title I of MACRA do?
Based Incentive Payments System (MIPS)
alternative payment models (APMs)
CMS has adopted a framework that categorizes payments to providers
Description Medicare Fee-for- Service examples
based on volume of services and not linked to quality or efficiency Category 1: Fee for Service – No Link to Value Category 2: Fee for Service – Link to Quality Category 3: Alternative Payment Models Built
Category 4: Population-Based Payment
based on the quality or efficiency of health care delivery
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Source: Rajkumar R, Conway PH, Tavenner M. CMS ─ engaging multiple payers in payment reform. JAMA 2014; 311: 1967-8.effective management of a population or an episode of care
delivery of services, but
savings or 2-sided risk
triggered by service delivery so volume is not linked to payment
responsible for the care of a beneficiary for a long period (e.g., ≥1 year)
Medicare fee- for-service
Medicare payments now are linked to quality
based purchasing
Modifier
Hospital Acquired Condition Reduction Program
initiative
Alignment Initiative Fee-For- Service Model
Accountable Care Organizations in years 3-5
During January 2015, HHS announced goals for value-based payments within the Medicare FFS system
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2016
30% 85%
2018
50% 90%
Target percentage of payments in ‘FFS linked to quality’ and ‘alternative payment models’ by 2016 and 2018
2014
~20% >80%
2011
0% ~70%
Goals Historical Performance
Alternative payment models (Categories 3-4) FFS linked to quality (Categories 2-4) All Medicare FFS (Categories 1-4)
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CMS will achieve Goal 1 through alternative payment models where providers are accountable for both cost and quality
Major APM Categories 2014 2015 2016 2017 2018
ESRD Prospective Payment System*
Other Models
Maryland All-Payer Hospital Payments* Comprehensive ESRD Care Model
Accountable Care Organizations
Medicare Shared Savings Program ACO* Pioneer ACO*
CMS will continue to test new models and will identify opportunities to expand existing models
* MSSP started in 2012, Pioneer started in 2012, BPCI started in 2013, CPC started in 2012, MAPCP started in 2011, Maryland All Payer started in 2014 ESRD PPS started in 2011Bundled Payments
Bundled Payment for Care Improvement* Specialty Care Models
Advanced Primary Care
Comprehensive Primary Care* Multi-payer Advanced Primary Care Practice* Model completion or expansion Next Generation ACO
CMS is aligning with private sector and states to drive delivery system reform CMS Strategies for Aligning with Private Sector and states
Convening Stakeholders Incentivizing Providers Partnering with States
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The Health Care Payment Learning and Action Network will accelerate the transition to alternative payment models
towards alternative payment models (APM)
adopting new models
federal partners to establish a common pathway for success
and remove barriers
beneficiary attribution
Network Objectives
alternative payment model goals across the US health system
to private payer/purchaser and state communities
alternative payment design
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Accountable Care Organizations: Participation in Medicare ACOs growing rapidly
* April 201512
saving program in 2015 ACO-Assigned Beneficiaries by County
Medicare Shared Savings Program: Results to date
1 2013 figures include both 2012 and 2013 savings / loss generated for some ACOs that started mid-year in 2012 (these were the first ACOs in the program)13
Financial Results
earned performance payments of more than $341 million
earned performance payments of more than $315 million Quality Results
clinicians’ communication, beneficiaries’ rating of their doctor , screening for tobacco use and cessation, and screening for high blood pressure
coordinated care and ACO-like contracts
to $6.0 million in PY3‡
Pioneer ACOs meet requirement for expansion after two years and continued to generate savings in performance year 3
MI, MN, NH, NY , VT , WI) reaching over 600,000 Medicare fee-for-service beneficiaries
19 ACOs extended for 2 additional years
‡ Results from actuarial analysis14
Independence at Home (IAH) Demonstration saves more than $3,000 per beneficiary
participating in the model
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primary care to improve health outcomes and reduce expenditures for high- risk Medicare beneficiaries
$3,070 per participating beneficiary per year
produced savings and met the designated quality measures for the first year
quality measures
Multi-payer Advanced Primary Care Practice (MAPCP) Demonstration has generated net savings
home (PCMH) initiatives in partnership with Medicaid and commercial payers
teams, and states
, P A, RI, VT) encompassing more than 4,000 providers, 700 practices, and 350,000 Medicare fee-for-service beneficiaries participating in the first year
, RI, VT were extended through Dec 2016
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Comprehensive Primary Care (CPC) is showing early positive results
, NY) encompassing 31 payers, nearly 500 practices, and approximately 2.5 million multi-payer patients
support primary care practice transformation through enhanced, non-visit-based payments, data feedback, and learning systems
expenditures per beneficiary by $14 or 2%*
hospitalizations, ED visits, and unplanned 30-day readmissions
18 * Reductions relative to a matched comparison group and do not include the care management fees (~$20 pbpm)
Partnership for Patients contributes to quality improvements
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Leading Indicators, change from 2010 to 2013 Data shows…
Ventilator- Associated Pneumonia Early Elective Delivery Central Line- Associated Blood Stream Infections Venous thromboembolic complications Re- admissions 62.4% ↓ 70.4% ↓ 12.3% ↓ 14.2% ↓ 7.3% ↓
The CMS Innovation Center was created by the Affordable Care Act to develop, test, and implement new payment and delivery models
“The purpose of the [Center] is to test innovative payment and service delivery models to reduce program expenditures…while preserving or enhancing the quality of care furnished to individuals under such titles”
Section 3021 of Affordable Care Act
Three scenarios for success 1. Quality improves; cost neutral 2. Quality neutral; cost reduced 3. Quality improves; cost reduced (best case) If a model meets one of these three criteria and other statutory prerequisites, the statute allows the Secretary to expand the duration and scope of a model through rulemaking
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The Innovation Center portfolio aligns with delivery system reform focus areas
Pay Providers
− Pioneer ACO Model − Medicare Shared Savings Program (housed in Center for Medicare) − Advance Payment ACO Model − Comprehensive ERSD Care Initiative − Next Generation ACO
− Comprehensive Primary Care Initiative (CPC) − Multi-Payer Advanced Primary Care Practice (MAPCP) Demonstration − Independence at Home Demonstration − Graduate Nurse Education Demonstration − Home Health Value Based Purchasing − Medicare Care Choices
Focus Areas CMS Innovation Center Portfolio*
T est and expand alternative payment models
23 * Many CMMI programs test innovations across multiple focus areas
− Bundled Payment for Care Improvement Models 1-4 − Oncology Care Model − Comprehensive Care for Joint Replacement (proposed)
− Medicaid Incentives for Prevention of Chronic Diseases − Strong Start Initiative − Medicaid Innovation Accelerator Program
− Financial Alignment Initiative − Initiative to Reduce Avoidable Hospitalizations among Nursing Facility Residents
− Medicare Advantage Value-Based Insurance Design model − Part D Enhanced Medication Therapy Management
Deliver Care
Support providers and states to improve the delivery of care
− Partnership for Patients ‒ SIM Round 1 − Transforming Clinical Practice ‒ SIM Round 2 − Community-Based Care Transitions ‒ Maryland All-Payer Model
Distribute Information
Increase information available for effective informed decision-making by consumers and providers
Next Generation ACO Model builds upon successes from Pioneer and MSSP ACOs
coordinating care for populations of patients
risk and reward than the Pioneer or MSSP ACOS
for ACOs can improve health outcomes and reduce expenditures
telehealth and skilled nursing facilities)
Model Principles
term stability
improve patient experience
choose alignment with ACO
improved investment capabilities
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an episode of care
care
Bundled Payments for Care Improvement is also growing rapidly
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Oncology Care Model: new emphasis on specialty care
majority are over 65 years
intensity coordination to improve quality and decrease cost
payment and performance based payment
Practice Transformation
1.Patient navigation 2.Care plan with 13 components based on IOM Care Management Plan 3.24/7 access to clinician and real time access to medical records 4.Use of therapies consistent with national guidelines 5.Data driven continuous quality improvement 6.ONC certified electronic health record and stage 2 meaningful use by year 3
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replacement
select geographic areas with few exceptions
in selected Metropolitan Statistical Areas (MSA) not participating in phase II
population size
Proposed Comprehensive Care for Joint Replacement would test a bundled payment model across a broad cross section of hospitals
* Current until October 2015Comprehensive ESRD Care will improve patient centered coordination of care
beneficiaries but account for 8% of payments
cost of care for ESRD patient
coordinates dialysis care with care outside of dialysis
the creation of ESRD Seamless Care Organizations (ESCO) that will include dialysis providers, nephrologist, and other medical providers
facilities, nephrologist, certain other Medicare enrolled providers and suppliers
Care Model
services
care management
between providers
management
exchange among providers
extended business hours
through on-site ‘rounding’
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Medicare Advantage Value Based Insurance Design Model offers more flexibility to Medicare Advantage Plans
design elements to encourage enrollees to use clinical services that have the greatest potential to positively impact on enrollee health
Oregon, Pennsylvania, and T ennessee
can offer varied plan benefit design for enrollees who fall into certain clinical categories identified and defined by CMS
and/or offer additional services to targeted enrollees
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Part D Enhanced Medication Therapy Management (MTM) Model
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design and implement programs will achieve
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Million Hearts Cardiovascular Disease Risk Reduction Model will reward population-level risk management
death and disability in the United States
both CVD-related and all-cause mortality
multi-specialty care, nephrology, cardiology
practices, hospital/physician organizations
Payment Model
approach
payment
risk stratify eligible beneficiary
payment
support management, monitoring, and care of beneficiaries identified as high-risk
upon population-level risk reduction
*Uses American College of Cardiology/American Heart Association (ACA/AUA) Atherosclerotic Cardiovascular Disease (ASCVD) 10-year pooled cohort risk calculatorMedicare Care Choices Model (MCCM) provides new options for hospice patients
hospice to receive palliative care services and curative care at the same time. Evidence from private market that can concurrent care can improve outcomes, patient and family experience, and lower costs.
programs.
assigned to phase 1 or 2
Services
The following services are available 24 hours a day , 7 days a week
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regulatory levers to accelerate health care transformation
State Innovation Model grants have been awarded in two rounds
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Round 1 states are testing and Round 2 states are designing and implementing comprehensive reform plans
Round 1 States testing APMs
Patient centered medical Health Accountable homes homes care Episodes Arkansas Maine Massachusetts Minnesota Oregon Vermont
Round 2 States designing interventions
success metrics
stakeholder engagement plans
refinement of operational plans
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decreased cost in communities across the U.S.
esting new service delivery technologies
Round 1 of the Health Care Innovation Awards tested a broad range
beneficiaries served
32 * Darker colors on map represent more HCIA projects in that state
care system transformation and delivering better outcomes
1. Reduce Medicare, Medicaid, and CHIP expenditure in outpatient and/or post-acute settings 2. Improve care for populations with specialized needs 3. Transform the financial and clinical models for specific types of providers and suppliers 4. Improve the health of populations
Round 2 of the Health Care Innovation Awards shared goals with Round 1 but focused on four themes
33 * Darker colors on map represent more HCIA projects in that state
Transforming Clinical Practice Initiative is designed to help clinicians achieve large-scale health transformation
years to improve on quality and enter alternative payment models
Phases of Transformation
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created
1) Practice Transformation Networks: peer-based learning networks designed to coach, mentor , and assist 2) Support and Alignment Networks: provides a system for workforce development utilizing professional associations and public- private partnerships
Alternative Payment Models (APMs)
CMS Innovation Center model
(under section 1 1 1 5A, other than a Health Care Innovation Award)
MSSP (Medicare Shared Savings Program) Demonstration under the Health Care
Quality Demonstration Program
Demonstration required by Federal Law
According to MACRA law, APMs include: APMs are new approaches to paying for medical care through Medicare that incentivize quality and value.
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MIPS.
How does MACRA provide additional rewards for participation in APMs? APM participants QPs
Those who participate in the most advanced APMs may be determined to be qualifying APM participants (“QPs”). As a result, QPs: 1. Are not subject to MIPS 2. Receive 5% lump sum bonus payments for years 2019-2024 3. Receive a higher fee schedule update for 2026 and
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Most physicians and practitioners who participate in APMs will be subject to MIPS and will receive favorable
scoring under the MIPS clinical practice
improvement activities performance category .
What is an eligible APM?
Eligible APMs are the most advanced APMs that meet the following criteria according to the MACRA law:
Base payment on quality measures comparable to those in MIPS Require use of certified EHR technology Either (1) bear more than nominal financial risk for monetary losses OR (2) be a medical home model expanded under CMMI authority
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How do I become a qualifying APM participant (QP)?
QPs are physicians and practitioners who have a certain % of their patients or
payments through an eligible APM.
Beginning in 2021 , this threshold % may be reached through a combination of Medicare and other non-Medicare payer
arrangements, such as private payers and Medicaid. QPs: 1. Are not subject to MIPS 2. Receive 5% lump sum bonus payments for years 2019-2024 3. Receive a higher fee schedule update for 2026 and
eligible APM QP
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Potential value-based financial rewards
MIPS adjustments
MIPS only eligible APMs
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APM-specific rewards
+ MIPS adjustments
APMs
eligible APM- specific rewards
+
5% lump sum bonus
to operating under the most advanced APMs.
Recall: How MACRA get us closer to meeting HHS payment reform goals 2016 2018
New HHS Goals:
30% 85% 50% 90%
The Merit-based Incentive Payment System helps to link fee-for-service payments to quality and value.
The law also provides incentives for participation in Alternative Payment Models via the bonus payment for Qualifying APM Participants (QPs) and favorable scoring in MIPS for APM participants who are not QPs.
All Medicare fee-for-service (FFS) payments (Categories 1-4) Medicare FFS payments linked to quality and value (Categories 2-4) Medicare payments linked to quality and value via APMs (Categories 3-4) Medicare payments to QPs in eligible APMs under MACRA 40
How will MACRA affect me?
Qualifying APM Participant
Subject to MIPS
Bottom line: There are
for financial incentives for participating in an APM, even if you don’t become a QP .
Am I in an APM?
Y es No
Am I in an eligible APM?
Y es No
Do I have enough payments or patients through my eligible APM?
Y es No
Is this my first year in Medicare OR am I below the low-volume threshold?
Y es No
Not subject to MIPS
A single MIPS composite performance score will factor in performance in 4 weighted performance categories:
MIPS Composite Performance Score
Quality Resource use
Meaningful use of certified EHR technology
Clinical practice improvement activities
How will physicians and practitioners be scored under MIPS?
4 2
How much can MIPS adjust payments?
will receive positive, negative, or neutral adjustments up to the percentages below.
upward adjustments to make total upward and downward adjustments equal.
MAXIMUM Adjustments
Adjustment to provider’ s base rate of Medicare Part B payment
2019 2020 2021 2022 onward
Merit
(MIPS)
4% 5% 7% 9%
4 3
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Through MACRA, HHS aims to:
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for providers to tie more of their payments to value.
providers to participate in APMs.
’s status with respect to MIPS and/or APMs.
in Medicaid, Medicare Advantage, and other payer arrangements.
MACRA Goals
Disclaimers
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This presentation was prepared as a tool to assist providers and is not intended to grant rights or impose obligations. Although every reasonable effort has been made to assure the accuracy of the information within these pages, the ultimate responsibility for the correct submission of claims and response to any remittance advice lies with the provider of services. This presentation is a general summary that explains certain aspects of the Medicare Program, but is not a legal document. The official Medicare Program provisions are contained in the relevant laws, regulations, and
documents have been provided within the document for your reference The Centers for Medicare & Medicaid Services (CMS) employees, agents, and staff make no representation, warranty, or guarantee that this compilation of Medicare information is error-free and will bear no responsibility or liability for the results or consequences of the use of this guide. .