On July 13, 2016, CMS Acting Administrator Andy Slavitt testified before the Senate Finance Committee regarding the possibility of a delay in implementation of the Medicare Access and CHIP Reauthorization Act (MACRA).    MACRA’s aim is to replace Medicare’s sustainable growth rate formula for physician payment adjustments. Medicare’s new reimbursement approach will change physician incentives, and in turn affect various aspects of physician practices, including the types of information systems and the data that practices can utilize. The final rule is expected to be published November 1, 2016, with implementation effective January 1, 2017.

Prior to Slavitt’s testimony, several healthcare groups, including the American Medical Association and the American Academy of Family Physicians, expressed concern that some physicians, especially those in small practices, may not be prepared for the first reporting period under the physician quality reporting programs established by MACRA and have asked CMS to delay the start date.  Senator Orrin Hatch (R-UT), Chairman of the Finance Committee, also voiced concern over the short time frame between when the final rule will be published and implementation.

In his testimony, Administrator Slavitt recognized the administrative burden implementation will place on small and rural practices.  The short two-month time frame between the MACRA final rule and the beginning of the CY 2017 reporting period is a concern for all physicians. However, industry observers have commented that the timeframe is particularly challenging for small practices that may lack the resources required to comply with MACRA, and in turn may be forced to join larger practices to ease the administrative burden.

More than 4,000 formal comments were sent to CMS asking for flexibility to allow physicians and other clinicians time to learn about and prepare for the upcoming MACRA changes.  Administrator Slavitt stated in his testimony that CMS was looking to alleviate these concerns by considering alternate start dates for implementation, shorter reporting periods, and additional methods to ease physicians into the program.  To view the Committee Hearing and member statements, click here.  More information regarding MACRA is available here.