CMS to Update the EHR Incentive Program

On January 29, the Centers for Medicare & Medicaid Services (“CMS”) announced its plan to propose changes to the Electronic Health Record Incentive Program (“EHR Incentive Program”). According to CMS, the rule will address provider concerns and reflect developments in the industry since the initial inception of the program. Specific proposed changes include, switching the reporting period from the fiscal year to the calendar year, and shortening the reporting period from one year to ninety days. CMS will release the proposed rule this spring.


HHS Announces Timeline for Medicare Payment Reform

On January 26, the U.S. Department of Health and Human Services (“HHS”) announced the timeline to transition doctors and hospitals into a new Medicare payment system as part of HHS’ ongoing effort to move away from the current fee-for-service model and toward a payment system based on outcomes and efficiency. Specifically, HHS plans to tie 85% of Medicare payments to an outcome measure by the end of 2016, and 90% by the end of 2018. In addition, HHS plans to link 30% of Medicare payments to alternative payment models (such as ACOs) by the end of 2016, and 50% by the end of 2018. Currently, only 80% of payments are linked to outcome measures and 20% to alternative payment arrangements. HHS has not specified how it will meet these targets. (Read more)