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Merit-Based Incentive Payment System (MIPS)
Merit-Based Incentive Payment System (MIPS)
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MIPS System 2
Introduction
Public health is prioritized in the United States to ensure that the well-being of the
citizens is improved. The federal government has placed many initiatives like the Medicare and
Medicaid insurance plans to cushion the population against health-related implications that arise
due to lack of enough funds to access medical treatment. This paper focuses on the recently
introduced Merit-Based Incentive Payment System (MIPS) intended to improve the quality of
healthcare. The paper goes on to identify the background of the initiative, measurement
categories, eligibility criteria, expected and actual outcomes, and also highlights the concern
The MIPS was created through the Medicare program and the CHIP Reauthorization Act
2015 (MACRA). This initiative was launched on 1st January 2017 to influence healthcare
transformation to a pay-for-value system from the old fee-for-service system. “The MIPS
program established three value reporting and quality plans namely Meaningful Use, Physical
Quality Reporting System, and Value-based Payment Modifier (MU, PQRS, and VBM) and
compiled them into a single program (AMA, 2021)”. The program is one of the best initiatives
put in place to improve the Quality Payment Program which focuses on moving the Part B
According to the programs, all those providers under the Part B Medicare plan who meet the
Eligibility Criteria
The unique element of the MIPS program is that providers have the opportunity of
choosing to participate as part of a group or as individuals. “For the individual clinicians who
meet the eligibility criteria, they need to report the information to Centers for CMS under a
National Provider Identifier Standard (NPI) that is pegged to one Taxpayer Identification
Number (TIN)” (AMA, 2021). For more than one clinician that has separate NPIs and has
replaced their billing rights to one TIN, also have the opportunity of participating in the MIPS as
a single group. The clinicians who take part in the MIPS programs as a single group undergo an
Medicare is tracked by the MIPS system and measured by the four available performance
categories. These measurement categories include cost, quality, improvement, and promotion of
interoperability. Medical specialists should report six measures under the quality measurement.
The family physicians need to select the appropriate measures that are aligned to their practice
since most of them participate in the MIPS. “The six available quality measures are Electronic
Clinical Quality Measures (eCQMs), MIPS Clinical Quality Measures (CQMs), Qualified
Clinical Data Registry (QCDR) measures, Medicare Part B claims measures, CMS web interface
measures and the Consumer Assessment of Healthcare Providers and Systems (CAHPS) for
eCQMs are important measurement tools that quantify and help in tracking healthcare
quality and ensure that the healthcare system is efficient in delivering safe, equitable, patient-
centered, and timely care. The system electronically extracts data from the EHR system and uses
MIPS System 4
it to provide the measurement of the provided healthcare to the public. Conversely, the CQMs
measure the processes, patient care outcomes, experiences, and observe the related treatments to
singe or more aims of quality healthcare like timely care, efficiency, and effectiveness.
Moreover, QCDR acts as a forum that does the collection of clinical and medical data to help in
disease and patient tracking to be used in the improvement of the provided care. Also, the CMS
web interface provides virtual measuring points for groups consisting of at least 25 clinicians as
they submit their quality data to benefit from the wide array of measures. Finally, the CAHPS
provides a survey program for MIPS whereby clinicians are involved with the survey group to
Ten steps have been identified for the successful implementation of the MIPS initiative
(AMA, 2021). The initiative is intended for eligible clinics who are not currently active in the
APM but wishes to participate in MIPS. The following action plan helps the clinicians in
planning on how to participate in the MIPS program. The first step is to identify if a clinician is
eligible for the program like those that offer Medicare services for their patients. After clinicians
have determined their legibility, they should review the performance categories that are available
under the program. MIPS calculates the overall score to help in determining the categories that
have the measures relevant to a clinician. The categories of performance are improvement
activities (IA), promoting interoperability (PI), quality, and cost. The next step is to plan for the
MIPS participation to ensure that the clinicians evade the 7% penalty charged for not
participating. As a clinician proceeds into the program, it is essential to review the performance
Thereafter, the participating clinicians can decide to report their data as a group or
individual and this decision should be done with a strategic focus. The next step is for the
clinicians to chose their reporting mechanisms that will be crucial during the measuring process.
“The available reporting mechanism includes qualified registries, CMS web interface, QCDRs,
EHR and claim based reporting” (CMS, 2021). Thereafter, for the participants who are reporting
through the PI category, they have to conduct a security risk analysis to provide the required PI
reporting for approximately 90 days and a whole calendar year for those reporting under quality.
The next step requires the participants to conclude the MIPS performance by ensuring that they
have complied with the criteria on data completeness for the selected category. Finally, the MIPS
data should be submitted through the chosen vendor on the CMS system to ensure compliance
In the previous calendar years, CMS completed its quest to refit MIPS through the
implementation of MIPS Value Pathways (MVPs) to regroup the measures from improvement
activities and quality categories with regards to medical specialty or conditions. MVPs are
planned to be implemented in 2021 (Advisory Board, 2020). This initiative is expected to bring
relief to many clinicians since CMS has postponed the MVPs implementation to 2022. “It is
expected that CMS will sunset the use of the CMS web interface in reporting by 2021” (CMS,
2021). The ACO reporting has been using the interface to conduct data reporting activities. With
the plan to eliminate the APM scoring standard and relacing with APM Performance Pathway
(APP), the measures are expected to be fixed for each of the categories of performance.
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Clinicians and other MIPS providers expect a significant contribution from the new
payment system program. With the quality category replacing the initial PQRS program,
providers will record data as a group or individuals and they pick to report to the best that
engagement and the exchange of health information electronically through certified electronic
health record technology (CEHRT)” (CMS, 2021). Also, the IA is expected to improve
population management, expand access to practice, and achieve health equality since it allows
This is expected to hinge the provisions that enable patients to get the health information
exchange through available healthcare technologies and systems. MIPS is expected to promote
interoperability whereby patients will easily access their medical information as a requirement
through the APIs. Also, the MIPS program advances the plight for medical reforms which will
reward the healthcare providers who are implementing the recommended strategy reforms
(Heath, 2016). This will further improve the provision of healthcare to patients and therefore
CMS has managed to create a discrete list indicating the goals of the MIPS program that
providers have to achieve to remain compliant. According to Squitieri & Chung (2017), MIPS
has provided the participants with a wide range of goals based on high-prevalent medical
conditions, cost of medication and so they can easily select the value goals that influence them to
improve their delivery for the intention of caring for the healthcare needs of the population. This
program has facilitated the exclusion of high thresholds that must be met and therefore helps in
MIPS System 7
solving the comparative problems involved in scoring since providers can strive on a similar
category basis.
Besides, the reporting burden has also been reduced significantly through the improved
use of claims information (Berdahl, Easterlin, Ryan, Needleman, & Nuckols, 2019). For the
providers, regardless of their size, they feel satisfied since they understand that their participation
in the program is correlated to the success of MIPS. They manage to improve the quality of their
providers are more likely to participate in the program due to the related motivation. Wilk & Jain
(2019) asserts that when these providers participate in the program, they achieve a greater score
which translates to a better potential that can put them in a meaningful position for financial
reward.
The MIPS program has managed to improve service delivery to vulnerable patients
through collaboration with Medicare treatment insurance plans (Eggleton, Liaw, & Bazemore,
2017). The program has helped in simplifying the medical requirements and therefore making
healthcare access less burdensome to patients. This development has also been promoted by the
MIPS has enabled doctors to access special technological equipment required for patient care
like retinal screening equipment for eye care (Berdahl, Easterlin, Ryan, Needleman, & Nuckols,
2019). This accessibility has improved the well-being of patients that need special medical
attention. Initially, it was a great challenge for patients to access eye care examination and
treatment from two different healthcare providers. Besides, the access to medical information of
patients is improved by MIPS program through the interrelated healthcare systems (Nichols,
MIPS System 8
2017). Therefore, this has improved the treatment of patients since reliable information
The Quality Payment System has been improved since it was launched in 2017.
Incremental steps have been put in place to ensure that the programs like MIPS and APM
provide the best solution in tracking medically related information and acknowledge the different
variables that are within the operations of clinicians. There is a need to further develop these
programs especially the MIPS to ensure that there is a reduced burden during reporting, enhance
stakeholder feedback, and further refine the program requirements (Jones, Raphaelson, Becker,
Kaloides, & Scharf, 2016). Therefore, the future of this program must be assessed to identify
factors that can derail its focus so for immediate rectification. In this regard, the main question is
whether the MIPS program will offer improved outcomes in the future or will fail to meet the
intended objectives.
The clinicians and other providers have continuously asserted that the program has
remained to be complex in helping them in achieving the required healthcare services. Most of
the factors that make the program complex have been identified and some of them are currently
being addressed. For instance, in the last few years, patients have received leverage through the
Patients over Paperwork program of reviewing MIPS. This initiative has assisted in eliminating
the unwanted elements of the system and streamlining program requirements thereby reducing
the burden imposed on clinicians. The objective of streamlining these requirements is to progress
away from the insufficient reports that are received from activities and measures, to realize better
types of measure sets that offer more meaningful information to the providers and the general
public.
MIPS System 9
Conclusion
Since the inception of MIPS in 2017, the program has enabled service providers and most
importantly, special caregivers like clinicians to offer better healthcare service in the US.
Through the collaboration with the Medicare plan, the program has tremendously improved the
wellbeing of the public. Nevertheless, the initiative is still in its early stages and therefore it faces
several challenges which the agencies have responded to amicably. The future remains uncertain,
and the big question regarding this initiative is whether it will pass the test of time. More studies
should be done to identify the factors that might affect the focus of the initiative to ensure that
References
Advisory Board. (2020, August 5). The 2021 Quality Payment Program proposal: The 3 key
https://www.advisory.com/daily-briefing/2020/08/05/qpp
AMA. (2021). MIPS Action Plan. Retrieved March 9, 2021, from American Medical Association
website: https://www.ama-assn.org/system/files/2019-05/2019-mips-action-plan.pdf
Berdahl, C. T., Easterlin, M. C., Ryan, G., Needleman, J., & Nuckols, T. K. (2019). Primary
2275–2281. https://doi.org/10.1007/s11606-019-05207-z
CMS. (2021). Merit-based Incentive Payment System (MIPS) Overview - QPP. Retrieved from
Eggleton, K., Liaw, W., & Bazemore, A. (2017). Impact of Gaps in Merit-Based Incentive
Heath, S. (2016, April 28). How MACRA, MIPS will Help Deliver Patient-Centered Care.
https://patientengagementhit.com/news/how-macra-mips-will-help-deliver-patient-
centered-care#:~:text=MIPS%20will%20%E2%80%9Cemphasize%20interoperability
%2C%20information
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Jones, L. K., Raphaelson, M., Becker, A., Kaloides, A., & Scharf, E. (2016). MACRA and the
https://doi.org/10.1212/CPJ.0000000000000296
Nichols, J. (2017). Knowing Quality When You See It. Caring for the Ages, 18(7), 4–5.
https://doi.org/10.1016/j.carage.2017.06.005
QPP. (2020). Quality Measures Requirements - QPP. Retrieved from qpp.cms.gov website:
https://qpp.cms.gov/mips/quality-measures?py=2020
Squitieri, L., & Chung, K. C. (2017). Measuring Provider Performance for Physicians
Wilk, A. S., & Jain, S. (2019). Effective Population Health Care Delivery Under Medicare’s
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