Physician Quality Reporting System

The Physician Quality Reporting Initiative (PQRI) was first implemented as a voluntary program in 2007. The program is now considered to be permanent and therefore the program name has been amended to the Physician Quality Reporting System (PQRS). The program provides incentive payments to eligible physicians and other practitioners who satisfactorily report data on quality measures for covered services furnished during a reporting period, which is typically one year. In 2010, participating professionals reporting measures were eligible for an incentive payment equal to 2.0 percent of the estimated total allowed charges for all covered professional services furnished during the reporting period. In 2010, eligible practitioners (EPs) could report individual measures or measure groups through one of three reporting mechanisms: claims-based reporting, registry-based reporting, and electronic health record (EHR)-based reporting. PQRS is applicable for Medicare Part B patients only and not for Medicare HMO products or for other insurance products.

CMS is providing a one percent incentive payment in 2011 and 0.5 percent incentive payments in 2012 – 2014 for successfully reporting PQRS measures. Penalties will begin in 2015 for those who do not satisfactorily submit quality data. The major changes to the PQRS program for 2011 are as follows:

  • Reporting of individual measures and measure groups - Eligible practitioners (EPs) participating in the program reporting claims-based individual or measure groups must report at least three measures that apply to the services furnished by the professional and report each measure for at least 50 percent of the practitioner's Medicare Part B fee-for-service (FFS) patients receiving services to which the measure applies. This is a reduction from the current requirement of 80 percent. Eligible practitioners reporting individual measures through qualified registries or electronic health records (EHRs) must report at least three measures and report each measure for at least 80 percent of the FFS patients receiving services where the measure applies. These criteria also apply for reporting group measures through registries, but not for EHR-based reporting.
  • Reporting by a Group Practice - CMS proposes to continue to allow reporting by group practices as a whole and incentive payments are provided to the group rather than the individual EP. CMS is proposing to change the definition of a group practice to include any group with two or more EPs. The smaller groups' participation in PQRI will be piloted with the first 500 groups to sign up. Smaller group practices (with between 2 and 200 EPs) must report three to six individual measures and one or more measure groups. For groups of more than 200 – all 26 of the current NQF-endorsed quality measures for coronary artery disease, diabetes, heart failure and preventive care services must be reported
  • Proposed Quality Measures for CY 2011 - CMS proposes to include 198 measures individual EPs can report in 2011. Measures are listed in the rule in four categories: 1) claims-based and registry-based reporting measures; 2) registry-based reporting measures only; 3) new individual measures, including several related to care transitions from hospital to home/self care; 4) EHR-based reporting measures.

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