The Centers for Medicare & Medicaid Services (CMS) has issued a proposed rule for calendar year 2027 Medicare physician payments that would phase out the traditional Merit-based Incentive Payment System (MIPS) after 2028, shifting toward value-based payment models. The agency said the proposal aims to reduce administrative burden and promote meaningful participation focused on quality and value.
Under the proposal, traditional MIPS reporting would be sunsetted after the 2028 performance year. CMS is introducing three new payment models known as Medicare Value Pathways (MVPs) for the 2027 performance year, focused on diabetic disease, hypertension management, and hospitalist services, while also modifying all 27 previously finalized MVPs.
The proposal also includes changes to quality measure reporting requirements, revised reporting criteria for the MIPS Promoting Interoperability category, and modifications to the APM Performance Pathway Plus program. CMS is introducing a new collection type for Medicare electronic clinical quality measures for Accountable Care Organizations participating in the Medicare Shared Savings Program.
The agency is also seeking feedback on several implementation questions, including the transition timeline for FHIR-based digital quality reporting, whether MVP scores should be normalized to ensure fairness, and improvements to the star rating assignment methodology for quality measures.