MACRA: A Physician’s Perspective

Physicians are quite honestly all over the place on the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA), the legislation that permanently repealed the sustainable growth rate (SGR) formula that for years threatened to cut physician payments by about 20 percent, requiring annual congressional patches.

Congress needed to pay for this move, however, and one of the ways it did that was to limit annual increases to the Medicare Physician Fee Schedule to no more than 0.75 percent (generally 0.5 percent). This guarantees that until things are changed by a future law, physician pay increases are going to lag behind inflation.

The Quality Payment Program (QPP) is of course the other major provision of MACRA. The Merit-based Incentive Payment System (MIPS), which is part of the QPP, is designed to give payment bonuses to physicians who deliver high value and payment reductions to those who deliver low value. MIPS has been touted as a “revenue neutral” program, wherein the reductions pay for the bonuses. While the revenue neutral part is the equal shifting of payments from one provider to another, keep in mind that the total payment pool is effectively decreasing every year, after inflationary adjustment.

The QPP is a very complex program. Last year, Deloitte sponsored a survey in which 50 percent of physician respondents hadn’t yet heard of MACRA. Earlier this year, Healthcare Informatics published a study indicating that 34 percent of physicians were “not at all prepared” for MIPS. The other part of the QPP, the advanced Alternative Payment Model (APM) pathway, is even more complex than MIPS.

The Centers for Medicare & Medicaid Services (CMS) is using the first two years as a transitional period to get physicians used to the programs. CMS has been offering a ton of education, most of which is very good, but are physicians listening? I think they are trying to, but these programs are so complex that hand-holding will be required every step of the way.

From a coding and clinical documentation specialist perspective, the key is to ensure that Hierarchical Condition Categories (HCCs) are appropriately captured by physicians. All of the cost and many of the quality outcome metrics are risk-adjusted by these. CMS has also just proposed a patient complexity bonus for the second year of the program, also based on HCCs.

Helping your doctors capture accurate HCCs with the requisite specificity will only help their performance in the QPP.

Facebook
Twitter
LinkedIn

Edward Hu, MD, CHCQM-PHYADV

Edward Hu, MD CHCQM-PHYADV is a board-certified internist and is the current president of the American College of Physician Advisors (ACPA). Dr. Hu is executive director of Inpatient Physician Advisor Services for the University of North Carolina Health Care System. Opinions expressed are his own and not representative of ACPA or UNC.

Related Stories

Leave a Reply

Please log in to your account to comment on this article.

Featured Webcasts

2026 IPPS Masterclass 3: Master MS-DRG Shifts and NTAPs

2026 IPPS Masterclass Day 3: MS-DRG Shifts and NTAPs

This third session in our 2026 IPPS Masterclass will feature a review of FY26 changes to the MS-DRG methodology and new technology add-on payments (NTAPs), presented by nationally recognized ICD-10 coding expert Christine Geiger, MA, RHIA, CCS, CRC, with bonus insights and analysis from Dr. James Kennedy.

August 14, 2025
2026 IPPS Masterclass Day 2: Master ICD-10-PCS Changes

2026 IPPS Masterclass Day 2: Master ICD-10-PCS Changes

This second session in our 2026 IPPS Masterclass will feature a review the FY26 changes to ICD-10-PCS codes. This information will be presented by nationally recognized ICD-10 coding expert Christine Geiger, MA, RHIA, CCS, CRC, with bonus insights and analysis from Dr. James Kennedy.

August 13, 2025
2026 IPPS Masterclass 1: Master ICD-10-CM Changes

2026 IPPS Masterclass Day 1: Master ICD-10-CM Changes

This first session in our 2026 IPPS Masterclass will feature an in-depth explanation of FY26 changes to ICD-10-CM codes and guidelines, CCs/MCCs, and revisions to the MCE, presented by presented by nationally recognized ICD-10 coding expert Christine Geiger, MA, RHIA, CCS, CRC, with bonus insights and analysis from Dr. James Kennedy.

August 12, 2025

Trending News

Featured Webcasts

The Two-Midnight Rule: New Challenges, Proven Strategies

The Two-Midnight Rule: New Challenges, Proven Strategies

RACmonitor is proud to welcome back Dr. Ronald Hirsch, one of his most requested webcasts. In this highly anticipated session, Dr. Hirsch will break down the complex Two Midnight Rule Medicare regulations, translating them into clear, actionable guidance. He’ll walk you through the basics of the rule, offer expert interpretation, and apply the rule to real-world clinical scenarios—so you leave with greater clarity, confidence, and the tools to ensure compliance.

June 19, 2025
Open Door Forum Webcast Series

Open Door Forum Webcast Series

Bring your questions and join the conversation during this open forum series, live every Wednesday at 10 a.m. EST from June 11–July 30. Hosted by Chuck Buck, these fast-paced 30-minute sessions connect you directly with top healthcare experts tackling today’s most urgent compliance and policy issues.

June 11, 2025
Open Door Forum: The Changing Face of Addiction: Coding, Compliance & Care

Open Door Forum: The Changing Face of Addiction: Coding, Compliance & Care

Substance abuse is everywhere. It’s a complicated diagnosis with wide-ranging implications well beyond acute care. The face of addiction continues to change so it’s important to remember not just the addict but the spectrum of extended victims and the other social determinants and legal ramifications. Join John K. Hall, MD, JD, MBA, FCLM, FRCPC, for a critical Q&A on navigating substance abuse in 2025.  Register today and be a part of the conversation!

July 16, 2025

Trending News

Prepare for the 2025 CMS IPPS Final Rule with ICD10monitor’s IPPSPalooza! Click HERE to learn more

Get 15% OFF on all educational webcasts at ICD10monitor with code JULYFOURTH24 until July 4, 2024—start learning today!

CYBER WEEK IS HERE! Don’t miss your chance to get 20% off now until Dec. 2 with code CYBER24