Beginning in 2019, Medicare payments through MACRA are to begin the phasing out of traditional fee-for-service payments.
The law repealed the annual Sustainable Growth Rate (SGR) formula, linking Medicare annual payment updates to prior year spending and gross domestic product (GDP) growth.
The law mandates that Medicare payment increases remain stable at 0.5 percent through 2019, and then remain flat through 2025. The first performance assessment year toward MACRA scoring is 2017, based on existing models providers are utilizing to determine payment in 2019, after which the new reporting structures begin.
The new Medicare payment models begin offering eligible clinicians (ECs) two payment tracks within the transition to value-based care and population health management; the Merit-based Incentive Payment System (MIPS) and the Alternative Payment Models (APM) tracks.