WASHINGTON (AP) – Medicare on Friday unveiled a far-reaching overhaul of how it pays doctors and other clinicians. Compensation for medical professionals will start taking into account the quality of service – not just quantity.
The massive regulation is known as MACRA. It’s meant to carry out bipartisan legislation passed by Congress and signed by President Barack Obama last year.
MACRA creates two new payment systems, or tracks, for clinicians. The majority of medical professionals billing Medicare – some 600,000 doctors, nurse practitioners, physician assistants and therapists – are affected. Medical practices must decide next year what track they will take.
Starting in 2019, clinicians can earn higher reimbursements if they learn new ways of doing business, joining a track that’s called Alternative Payment Models. That involves being willing to accept financial risk and reward for performance, reporting quality measures to the government, and using electronic medical records.
Advocates say the new system will improve quality and help check costs. But critics say the complicated requirements are overwhelming for solo practitioners.