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Newly Announced CMS Payment Models July 16, 2019 Lisa Benton Jenna Vonaa, MS

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Page 1: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Newly Announced CMS

Payment ModelsJuly 16, 2019

Lisa Benton

Jenna Vonaa, MS

Page 2: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Agenda

Provide a high-level overview of the

Direct Contracting Payment Model

Outline the eligibility requirements

Describe the timeline and application

deadlines

Provide a high-level overview of the

Primary Care First Payment Model

Outline the eligibility requirements

Describe the timeline and application

deadlines

Helpful resources

Page 3: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Acronyms

ACO – Accountable Care Organization LOI – Letter of Intent

AHU – Acute Hospitalization Utilization MIPS – Merit Based Incentive Program

CMS – Centers for Medicare and Medicaid

Services

PBP - Population Based Payment

CMMI – Centers for Medicare and

Medicaid Innovation

PCF – Primary Care First Model

CPC+ - Comprehensive Primary Care Plus RFI – Request for Information

DCM – Direct Contacting Model SIP – Seriously Ill Populations

FFS – Fee for Service

Page 4: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

CMS Primary Cares Initiative

Administered through the CMS Innovation Center, the CMS Primary Cares

Initiative will provide primary care practices and other providers with five

new payment model options under two paths:

Primary Care First (PCF):

PCF - General

PCF – Seriously Ill Populations (SIP)

Direct Contracting (DC):

Professional PBP

Global PBP

Geographic PBP

Page 5: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Direct Contracting

Payment Model

Page 6: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Direct Contracting Model Options

Professional Population-Based Option (PBP)

• ACO structure with Participants and Preferred Providers defined at the TIN/NPI level

• 50% shared savings/ shared losses with CMS

• Primary Care Capitation equal to 7% of total cost of care for enhanced primary care services

Global PBP

• ACO structure with Participants and Preferred Providers defined at the TIN/NPI level

• 100% risk

• Choice between Total Care Capitation or Primary Care Capitation

Geographic PBP*

• Would be open to entities interested in taking on regional risk and entering into arrangements with clinicians in the region

• 100% risk

• Would offer a choice between Full Financial Risk with FFS claims and reconciliation and Total Care Capitation

CMS will test three voluntary risk-sharing payment model options under Direct Contracting:

*CMS sought public input on

model design elements

Lowest Risk Highest Risk

Page 7: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Themes for Professional and Global PBP

Page 8: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Model Goals

Goal: Examples of how Direct Contracting will achieve these goals

Page 9: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

DC Risk Sharing Arrangement

Option Risk Arrangement

Professional PBP 50% Savings/Losses

Global PBP 100% Savings/Losses

Geographic PBP

(proposed)100% Savings/Losses

Page 10: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

DC Payment Model Options

Full Financial Risk

with FFS claims

processing

Primary Care

Capitation

Total Care

Capitation

Professional PBP

Global PBP

Geographic PBP

(Proposed)

Page 11: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Direct Contracting Entities - Eligibility

• Generally, must have at least 5,000 aligned Medicare FFS beneficiaries

• “On ramp” for organizations new to Medicare FFS

• Added flexibility for organizations serving dually eligible, chronically

ill populations

• Core providers and suppliers

• Used to align beneficiaries to

the Direct Contracting entity

• Responsible for reporting quality

through the Direct Contracting

Entity and improving the quality

of care for aligned beneficiaries

• Not used to align beneficiaries

to the Direct Contracting Entity

• Participate in downstream

arrangements, certain benefit

enhancements or payment rule

waivers, and contribute to

Direct Contracting Entity goals

DC Participants Preferred Providers

Page 12: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Timeline for Direct Contracting Model

Direct Contracting Model will begin in January 2021 and end December 2025

While submitting a LOI (letter of intent) is required in order to apply, a LOI will not bind an interested organization to participate in the model.

❑ Failure to submit an LOI during the allowed timeframe will result in the organization being ineligible to apply during the initial application period.

The LOI for the Global and Professional DC Options is available and must be received by Friday, August 2, 2019 at 11:59 pm EDT.

❑ https://innovation.cms.gov/initiatives/direct-contracting-model-options/

Currently pending, CMS will release a Request for Applications (RFA) for organizations interested in applying who have submitted an LOI

Page 13: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Primary Care First (PCF)

Payment Model

Page 14: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

PCF Model Options

• Focuses on advanced primary care practices ready to assume financial risk in exchange for reduced administrative burdens and performance-based payments. Introduces new, higher payments for practices caring for complex, chronically ill patients

PCF Payment Model Option

• Promotes care for high need, seriously ill population (SIP) beneficiaries who lack a primary care practitioner and/or effective care coordination

PCF Seriously Ill Populations

Payment Model Option

* Clinicians can participate in both the PCF and the SIP Payment Model options

Page 15: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

PCF Model Design

5 year alternative payment model adapted

from CPC+

Offers greater flexibility, increased transparency, and performance-based payments to participants

Fosters multi-payer alignment to provide

practices with resources and incentives to enhance

care for all patients, regardless of insurer

Rewards participants with additional revenue for taking on limited risk,

based on easily understood, actionable

outcomes

Payment options for practices that specialize in patients with complex chronic conditions and high need, seriously ill

populations

Page 16: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Primary Care First: Quality of Care

Measures were selected to be actionable and clinically meaningful, including:

patient experience of care survey

controlling high blood pressure

diabetes hemoglobin A1c

poor control

colorectal cancer screening

advance care planning

CMS will assess quality of care based on a focused set of measures that are clinically meaningful for patients with complex, chronic needs and the

serious illness population.

Page 17: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

PCF Payment Structure:

Two Major Components

Page 18: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

PCF – Seriously Ill Populations Option

PCF includes unique aspects for practices electing to serve seriously ill

populations (SIP) to increase access to high-quality, advanced primary care.

Payment amounts for SIP patients will be set to reflect the high need, high

risk nature of the population.

Payments in the first 12 months include:

▪ One-time first visit payment

▪ Monthly SIP payments

▪ Flat visit fees

▪ Quality payment

Page 19: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Eligibility for PCF

Primary care practitioners (MD, DO, CNS, NP, PA) in good standing with CMS

Provide health services to a minimum of 125 attributed Medicare beneficiaries*

Primary care services account for at least 70% of the practices’ collective billing*

Experience with value-based payment arrangement

Use 2015 Edition CEHRT, support data exchange, and connect to a regional HIE

Attest to a limited set of advanced primary care delivery capabilities in the Practice Application

*Note: Practices participating only in the SIP option are not subject to these specific requirements.

Page 20: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Additional Eligibility for PCF – Seriously Ill

Populations Option

Meet basic competencies to successfully manage complex patients and

demonstrate relevant clinical capabilities

Have a network of providers in the community to meet patients’ long-term

care needs for those only participating in the SIP option

Practices receiving SIP-Identified patients (identified based on risk score) need to:

Page 21: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

PCF Eligible Regions

26 Regions for the 2020 start date:

Alaska (statewide), Arkansas (statewide), California (statewide), Colorado (statewide), Delaware (statewide), Florida (statewide), Greater Buffalo region (New York), Greater Kansas City region (Kansas and Missouri), Greater Philadelphia region (Pennsylvania), Hawaii (statewide), Louisiana (statewide), Maine (statewide), Massachusetts (statewide), Michigan (statewide), Montana (statewide), Nebraska (statewide), New Hampshire (statewide), New Jersey (statewide), North Dakota (statewide), North Hudson-Capital region (New York), Ohio and Northern Kentucky region (statewide in Ohio and partial state in Kentucky), Oklahoma (statewide), Oregon (statewide), Rhode Island (statewide), Tennessee (statewide), and Virginia (statewide).

*Note: Connecticut and Vermont are not eligible

Page 22: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Timeline for Primary Care First

Spring 2019 Summer 2019 Fall/Winter 2019 January 2020 April 2020

Practice

application

period

Practice and

payer

solicitation

period

Practices

and payers

selected

Model

Launch

Payment

Changes

Begin

Page 23: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Helpful Resources

Qualidigm Payment Model Homepage

https://www.qualidigm.org/payment-models/

CMMI - Primary Care First Model

https://innovation.cms.gov/initiatives/primary-care-first-model-options/

CMMI - Direct Contracting Model

https://innovation.cms.gov/initiatives/direct-contracting-model-options/

Page 24: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Questions

Page 25: Newly Announced CMS Payment Models - Microsoft · 7/16/2019  · Payment amounts for SIP patients will be set to reflect the high need, high risk nature of the population. Payments

Join Us:

Open Call for Q&A : Tuesday, July 30, 2019 – 12 – 12:30 pm