CMS proposes changes to Medicare Part B payment policy

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CMS has proposed changes to the Medicare Part B payment policy to ensure that payment systems are updated to reflect changes in medical practice and the relative value of services delivered by physicians to beneficiaries under the 2009 Medicare Physician Fee Schedule (MPFS). Under Medicare law, CMS is required to reduce 2009 Physician Fee Schedule by 5.4 percent.

Improvements in PQRI. The CMS proposed rule would provide for additional improvements to the Physician Quality Reporting Initiative (PQRI), including: (1) a final set of quality measures to be selected from 175 measures that fall into four broad categories; (2) increasing the number of conditions covered by measures groups to nine; (3) two new reporting periods to provide eligible professions with additional options for reporting PQRI data; and (4) accepting PQRI data via clinical registries and electronic health records systems.

Eligible professionals who are not currently participating in the PQRI will have the opportunity to begin reporting in July 2008. Eligible professionals who have reported PQRI data successfully for the full year can earn an incentive payment based on their total Medicare allowed charges for services furnished in 2008, while those who begin reporting in July can earn an incentive payment based on their total allowed charges from July 1 through December 31, 2008.

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