This content is excerpted from EyeNet’s MIPS 2022: A Primer and Reference; also see the Academy’s MIPS hub page.
Bonus or penalty? Your 2022 MIPS final score (0-100 points) will impact your 2023 Medicare Part B payments as shown below.
Table: Bonuses and Penalties
2022 MIPS Final Score |
2024 Payment Adjustment |
0-18.75 points |
Maximum penalty of –9% |
18.76-74.99 points |
Penalty on a sliding scale (see table below) |
75 points |
Neutral (no penalty, no bonus) |
75.01-88.99 points |
Initial bonus* |
89-100 points |
Initial bonus* + exceptional performance bonus† |
* The initial bonus is based on a linear sliding scale—those who score 75.01 points get the lowest bonus; those who score 100 points get the highest.
† The exceptional performance bonus is based on a linear sliding scale—those who score 89 points get the lowest bonus; those who score 100 points get the highest.
|
Table: Payment Penalty
If your 2022 MIPS final score is less than the 75-point performance threshold, your 2024 Medicare Part B payments will be reduced as shown below.
Although CMS has set the negative payment adjustment (as shown above), it doesn’t yet know what the positive payment adjustments will be. The bonus for scoring more than 75 points (the initial bonus) will be funded by payment penalties. Consequently, CMS won’t be able to estimate how much money is in the bonus pool—and how many clinicians will be entitled to money from that pool—until it has calculated the MIPS final scores of all MIPS participants, which can’t happen until the performance year is over.
Similarly, until CMS knows how many MIPS eligible clinicians have scored at least 89 points, and what scores they got, it won’t know how far it has to stretch the $500-millon bonus pool for exceptional performance.
To date, the initial bonuses and the exceptional performance bonuses have been quite small.
Why is there a gap year between performance (2022) and payment adjustments (2024)? CMS needs time to process the MIPS data, determine final scores, perform targeted reviews, and calculate adjustment factors for bonuses that ensure budget neutrality.
How the Bonuses and Penalties Will Be Applied
You can report and be scored as an individual and/or as part of a group. If you are scored as an individual, CMS will use both your Taxpayer Identification Number (TIN) and National Provider Identifier (NPI) to distinguish you as a unique MIPS participant.
If you and your colleagues report as a group, the group’s TIN will be used as your identifier for scoring purposes.
You also can report both ways and see which approach scores higher.
Payment adjustments are always applied at the TIN/NPI level. CMS will apply the payment adjustments at the TIN/NPI level, regardless of whether you were assigned a MIPS final score as an individual or as part of a MIPS group.
What if you move to another practice after 2022 is over? Your 2022 final score will determine your 2024 payment adjustment, and this is the case even if you move to a new practice after the 2022 performance year is over.
The payment adjustments will be applied throughout the year. In 2024, CMS will start applying a payment adjustment based on your 2022 MIPS final score. This payment adjustment will be applied throughout 2024 to your Medicare Part B remittances.
Table: How the Bonuses Are Funded
2022 MIPS Final Score
|
2024 Payment Adjustment
|
|
Provenance of Bonus Dollars
|
0-18.75 points
|
–9% penalty (negative payment adjustment)
|
→
|
The negative payment adjustments reduce CMS expenditure. These savings go into a bonus pool that funds the initial bonuses (which are therefore budget neutral).
|
18.76-74.99 points
|
Payment penalty on a linear sliding scale (negative payment adjustment), as shown in Table: Payment Penalty
|
→
|
75.00 points
|
Neutral (no payment adjustment)
|
|
75.01-88.99 points
|
Initial bonus (payment adjustment)
|
←
|
These initial bonuses are paid on a linear sliding scale. (Those who score 75.01 points get the lowest bonus. Those who score 100 points get the highest.)
|
89.00-100 points
|
Initial bonus (payment adjustment)
|
←
|
+ exceptional performance bonus (additional payment adjustment)
|
←
|
Funded by a separate $500-million bonus pool, these exceptional performance bonuses are paid on a linear sliding scale. (Those who score 89 points get the lowest bonus. Those who score 100 points get the highest.) |
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Next: Who Does (and Doesn’t) Take Part in MIPS
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