Alternative Payment Models


In April 2015, President Obama signed into law the Medicare Access and CHIP Reauthorization Act of 2015 (MACRA). The law:

  • Repeals the sustainable growth rate (SGR) methodology for determining updates to the Medicare physician fee schedule
  • Establishes annual positive or flat fee updates for 10 years and institutes a two-track fee update beginning in 2019.
  • Establishes the Merit-based Incentive Payment System (MIPS) that consolidates existing Medicare quality programs.
  • Establishes a pathway for physicians to participate in an Alternative Payment Model (APM).

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