Medicare Access and CHIP Reauthorization Act (MACRA) Explained: Key Features and Changes
The Medicare Access and CHIP Reauthorization Act (MACRA) brought significant changes to Medicare. Here's a breakdown of its key features:
- Repeals the Sustainable Growth Rate (SGR): MACRA eliminated the SGR, a formula that had previously threatened to drastically cut Medicare payments to physicians.
- Provides a New Incentive Structure for Providers: Instead of the SGR, MACRA introduced a new system that rewards providers for quality care and value. This system includes the Merit-Based Incentive Payment System (MIPS) and alternative payment models (APMs).
- Consolidates Quality Programs: MACRA streamlined Medicare's quality reporting programs by consolidating them into the MIPS.
- Provides Annual Fee Adjustments: MACRA offers annual positive or flat fee adjustments to the Medicare fee-for-service program through 2025.
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