Medicare Gets Serious About Value-based Payments: How MACRA Will Change Care Delivery

by NTT Data

January 30, 2018

New payment system incentivizes a team approach to improving chronic disease outcomes

For those who view the Medicare Access and CHIP Reauthorization Act (MACRA) as an administrative and reporting distraction, it’s time to take a second look. It is the most profound change in the physician payment model since 1965, the year Medicare was enacted. The program offers physicians a variety of choices, but all those choices are designed to change care delivery by moving reimbursements away from traditional fee-for service reimbursement and toward pay for performance. Most physicians with an active Medicare patient roster will fall under the Merit-Based Incentive Payment System (MIPS). While MIPS is a fee-for-service arrangement, beginning in 2019 the amount of payments will be based on performance reported in 2017.