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AMCP Webinar Emerging Physician Payment Models: What Does it Mean for AMCP Members and Medication Management? April 19, 2017 Thank You to Our Sponsor! 1

Disclaimer Organizations may not re use material presented at this AMCP webinar for commercial purposes without the written consent of the presenter, the person or organization holding copyright to the material (if applicable), and AMCP. Commercial purposes include but are not limited to symposia, educational programs, and other forms of presentation, whether developed or offered by forprofit or not for profit entities, and that involve funding from for profit firms or a registration fee that is other than nominal. In addition, organizations may not widely redistribute or re use this webinar material without the written consent of the presenter, the person or organization holding copyright to the material (if applicable), and AMCP. This includes large quantity redistribution of the material or storage of the material on electronic systems for other than personal use. How to Ask A Question Type your question in the Questions area 2

Speakers Darryl Drevna Director, Regulatory and Public Relations Policy AMGA Daniel Buffington, PharmD, MBA President American Institute of Pharmaceutical Sciences (AIPS) 5 MACRA and the Physicians Perspective Darryl Drevna, MA ddrevna@amga.org 3

Presentation Outline MACRA Basics Merit Based Incentive Payment System (MIPS) Eligible Clinicians (ECs) and Exemptions MIPS Alternative Payment Modes Advanced Alternative Payment Models (APMs) Medical Group Response Pharmacy Spend Medicare Access and CHIP Reauthorization Act (MACRA) MACRA became law April 16, 2015 (the bill passed with overwhelming Congressional support, i.e., received over 90% of Senate and House vote MACRA Title 1 sunsets and replaces the SGR annual physician (and other eligible professionals) fee update methodology MACRA creates what CMS terms the Quality Payment Program The law establishes a 0.5% annual physician fee update in the short term, from 2015 and through 2019 4

Three Pathways: MIPS, APM, Advanced APM Quality Payment Program Potential financial rewards Not in APM In APM In Advanced APM MIPS adjustments MIPS adjustments + APM specific rewards If you are a Qualifying APM Participant (QP) = APM specific rewards + 5% lump sum bonus MACRA: Merit Based Incentive Payment System PQRS Meaningful Use Value Based Modifier Performance Year begins in 2017 Quality Cost/Resource Use Improvement Activities Advancing Care Information 5

MIPS: Who s In Years 1 2 (2017 2018) Potential additions (2019+) Physicians Physician Assistants Nurse Practitioners Clinical Nurse Specialists Certified Registered Nurse Anesthetists Physical or Occupational Therapists Speech Language Pathologists Audiologists Nurse Midwives Clinical Social Workers Clinical Pathologists Clinical Psychologists Dietitians/Nutritional Professionals MIPS: Who s Out Providers below the Medicare low volume threshold $30,000 OR 100 or fewer beneficiaries annually First year Medicare providers Providers in an Advanced Alternative Payment Model 6

MIPS: Four Components Quality: 60% 60 70 Points Advancing Care Information: 25% 100+ Points Improvement Activities: 15% 40 Points Cost: 0% Add each weighted category to earn MIPS Composite Performance Score Quality Advancing Care Information Improvement Activities Cost MIPS Score MIPS Payments 14 7

MIPS: Pick Your Pace Payment Adjustment 2017 performance determines 2019 payment adjustment Composite Performance Score (CPS) Performance Threshold: 3 points MIPS Adjustment 1. Submit no data = 4% update 2. One quality measure OR one improvement activity OR the required advancing care information measures: neutral or positive MIPS update 1) If reporting via GPRO must meet case minimum requirements 3. More than one quality measure, OR more than one improvement activity, OR advancing care information base measures: positive update possible, avoid negative update (Medicare physician fee schedule updated 0.5% from 2015 2019) MIPS: Quality Measures Reporting Full Participation All Cause Hospital Admission (ACHA) for Groups of 16 or more 1 Outcome Measure or High Priority if outcome unavailable Groups of 25+: GPRO on first 248 beneficiaries 6 quality measures or specialty/subspecialty measure set Proposed Cross Cutting Measure not finalized Reporting Periods and Benchmarks Vary 8

MIPS: Improvement Activities Reporting Expanded Care Access Attest completion of minimum of 4 activities for 90 days Full Credit for PCMH Half Credit for other APMs Rural or Small Practice: Attest 2 activities for 90 days 15% Weight (2017) Care Coordination Population Management Beneficiary Engagement Patient Safety and Practice Assessment Achieving Health Equity Emergency Preparedness and Response Integrated Behavior and Mental Health MIPS: Advancing Care Information Reporting Security Risk Analysis Has base and performance reporting components Request/Accept Summary of Care 5 Base Measures E Prescribing Final rule reduced required base measures from 11 to 5 9 performance measures 2015 CEHRT required to report in the ACI category in 2018 90 day performance period (reduction from full year) Send Summary of Care Provide Patient Access 9

MIPS: Cost 0% in 2017 10% in 2018 30% in 2019 CMS will consider how to include Part D into the cost category Rejected requests to remove Part B drugs MIPS: Cost Scoring Cost scoring replaces Value Based Modifier Reporting is claims based no reporting requirement The benchmark is the performance period The benchmark is national not regional CMS will forward for informational purposes per capita costs (minimum 20 cases) and Medicare spending per beneficiary (MSPP) (minimum 35 cases) For 2018 look to Proposed Rule? Resource Use: Continuation of two measures from the VM: Total per costs capita for all attributed beneficiaries and Medicare Spending per Beneficiaries (MSPB) In VM all cost measures attributed to TIN 10

MIPS: Data Submission Benchmarks Differ by Method Individual Clinician Quality Qualified Clinical Data Registry (QCDR) Qualified Registry EHR Vendors Claims (No submission needed) Resource Use Claims (No submission needed) Advanced Care Information Attestation QCDR Qualified Registry EHR Vendor Clinical Practice Improvement Activities Attestation QCDR EHR Vendor Claims (No submission needed) Quality QCDR Qualified Registry EHR Vendors CMS Web Interface (GPRO) CAHPS Group (One TIN) Resource Use Claims (No submission needed) Advanced Care Information Attestation QCDR Qualified Registry EHR Vendor CMS Web Interface (Group of 25+) (GPRO) Clinical Practice Improvement Activities Attestation QCDR Qualified Registry EHR Vendor CMS Web Interface (Group of 25+) (GPRO) MIPS: Exceptional Performance Bonus $500 million available each year from 2019 2024 for those with exception performance Exceptional performance threshold is 70 points for performance year 2017 Limited to stop gain restrictions Exceptional threshold: 70 points A share of $500 million 11

Alternative Payment Models (APMs) MIPS APMs (No 5% Bonus) Partially Qualifying APMs (No 5% Bonus & MIPS Choice) Advanced APMs (5% Bonus) Quality Payment Program What are MIPS APMs? Goals Reduce eligible clinician reporting burden. Maintain focus on the goals and objectives of APMs. How does it work? Streamlined MIPS reporting and scoring for eligible clinicians in certain APMs. Aggregates eligible clinician MIPS scores to the APM Entity level. All eligible clinicians in an APM Entity receive the same MIPS final score. Uses APM related performance to the extent practicable. MIPS APMs are a Subset of APMs APMs MIPS APMs 24 12

Quality Payment Program Quality Cost Shared Savings Program under the APM Scoring Standard REPORTING REQUIREMENT PERFORMANCE SCORE WEIGHT No additional reporting necessary. ACOs submit quality measures to the CMS Web Interface on behalf of their participating MIPS eligible clinicians. MIPS eligible clinicians will not be assessed on cost. The MIPS quality performance category requirements and benchmarks will be used to score quality at the ACO level. N/A Improvement Activities No additional reporting necessary. CMS will assign a 100% score to each APM Entity group based on the activities required of participants in the Shared Savings Program. AdvancingCare Each ACO participant TIN in the ACO submits under this category according to MIPS reporting requirements. All of the ACO participant TIN scores will be aggregated as a weighted average based on the number of MIPS eligible clinicians in each TIN to yield one APM Entity group score. Advanced APMs: Bonus Payment Payments Based on MIPS like Quality Measures Certified EHRT More than Nominal Risk Minimum Payment or Patient Threshold Advanced APM and 5% Bonus 5% of aggregate amounts paid for Medicare Part B professional services from preceding year across all billing TINS associated with the QPs NPI CMS estimates $333 million to $571 million in Advanced APM bonus payments in 2019 13

CMS Pre Approved Advanced APMs 2017 Performance Year Comprehensive ESRD Care (CEC) Two Sided Risk Comprehensive Primary Care Plus (CPC+) Next Generation ACO Model Shared Savings Program Track 2 Shared Savings Program Track 3 Oncology Care Model (OCM) Two Sided Risk Comprehensive Care for Joint Replacement (CJR) Payment Model (Track 1 CEHRT) Vermont Medicare ACO Initiative (as part of the Vermont All Payer ACO Model) Updated on an ad hoc basis will not go through formal rulemaking process 2018 Performance Year and beyond ACO Track 1+ Episode (bundled) payment models to be determined Medical Group Response Strong incentives to address the overall cost of care Strong incentives to form APMs Improve Quality and Outcomes Device or Drug must be statistically significantly better than the competition Systems and groups will look for one solution Physician preference not a factor anymore Reduce pharmacy spend Drugs among most costly items Practice formulary Monitor adherence and tie to physician compensation 14

MACRA and Pharmacists Perspective Daniel E. Buffington, PharmD, MBA President American Institute of Pharmaceutical Sciences 29 Dan Buffington, PharmD, MBA Practice Director Associate Professor, USF Colleges of Medicine & Pharmacy Clinical Pharmacology Services 6285 E. Fowler Ave Tampa, FL 33617 813-983-1500 Office danbuffington@cpshealth.com www.cpshealth.com 30 15

Clinical Pharmacology Services, Inc. 31 32 16

Academia University of South Florida Faculty at the University of South Florida Colleges of Medicine and Pharmacy. Experiential Preceptor for numerous Colleges of Pharmacy Current Professional Activities Clinical Practice Clinical Pharmacology Services, Inc. Private Specialty MTM Practice Model located in Tampa, FL. MTM, clinical research trials, drug information services, forensic expert. Professional Activities National Associations Pharmacy and Medical AMA CPT Editorial Panel Advisory CMS & CMMI Medication Safety Expert CMS & CMMI APhA AACP AMCP NCPA ASHP ACCP ASCP Forensic Pharmacology Expert AMA CPT & RUC 33 Medication Therapy Management 34 17

35 Pharmacists Billing Models Product Based Clinical Service Based 36 18

Patient Education Drug Regimen Review Problem Intervention Physical Assessment Adherence Persistence Disease Management Comprehensive Medication Management Minimal focus Triage-minded Short term nature Instantaneous Episodic Multi-focused Multi-relationship Repetitive Accountability Full Scope (Drug/Patient/Disease) 37 38 19

Medication Therapy Management Service(s) (MTMS) describe face to face patient assessment and intervention as appropriate, by a pharmacist. MTMS is provided to optimize the response to medications or to manage treatmentrelated medication interactions or complications. MTMS includes the following documented elements: review of the pertinent patient history, medication profile (prescription and non prescription), and recommendations for improving health outcomes and treatment compliance. These codes are not to be used to describe the provision of product specific information at the point of dispensing or any other routine dispensing related activities. 99605 Medication therapy management service(s) provided by a pharmacist, individual, face to face with patient, initial 15 minutes, with assessment, and intervention if provided; initial 15 minutes, new patient 99606 Initial 15 minutes, established patient 99607 each additional 15 minutes (List separately in addition to code for the primary service) (Use 99607 in conjunction with 99605, 99606) 39 Initial CPT Coding 99605, 99060, 99607 Chapters: Evaluation & Management (E&M) Medicine Laboratory Expanded Code Access Incident To Services Discharge counseling Device training Pharmacokinetic Monitoring Evaluation & Management (E&M) Chronic Care Management Transitional Care Management Broader Payer Adoption 40 20

Initial CPT Coding 99605, 99060, 99607 Chapters: Evaluation & Management (E&M) Medicine Laboratory Expanded Code Access Incident To Services Discharge counseling Device training Pharmacokinetic Monitoring Evaluation & Management (E&M) Chronic Care Management Transitional Care Management Broader Payer Adoption 41 DHHS / CMS / CMMI Center for Medicare & Medicaid Innovation Tom Price, MD DHHS Secretary Seema Verma, MD Administrator Patrick Conway, MD Paul McGann, MD Dennis Wagner Darren Dewalt, MD 42 21

Healthcare Payment Reform 1 2 3 4 FUTURE Fee For Service Pay For Performance Healthcare Reform Quality Payment Program? 43 Current Procedural Terminology (CPT) Relative Value System Update Committee (RUC) Center for Medicare & Medicaid Innovation (CMM) CPT Editorial Panel CPT Advisor Pharmacists RVS Update Committee Code Valuation Panel Health Care Reform Team CMMI & CCSQ Health Policy & Medication Safety Fellow 44 22

Healthcare Innovation Goals Center for Medicare & Medicaid Innovation (CMM) Health Care Reform Team CMMI & CCSQ Health Policy & Medication Safety Fellow 45 Physician Technical Advisory Coalition (PTAC) Alternate Payment Models (APM) 46 23

Alternate Payment Model Journey Coding Code Valuation Payment Models MIPS & MACRA AMA CPT Current Procedural Terminology AMA RUC Relative Value Scale (RVS) Update Committee CMS / CMMI Healthcare Payment Modeling & Improvement Future Alternate Payment Models (APM) Value Based Payment FFS & APM Product or Service RUC Valuation Analysis or Market Valued Healthcare Reform a) Market & Exchange b) Payment Models c) Quality & Safety Improvement Physician Focused Technical Advisory Committee 47 25 APM INTEGRATION Patient Management (Collaboration & Efficiency) Medication Management Population Health Management Medication Utilization & Costs Reduced ADE & Liability Quality Metric Performance 48 24

Practice Based Testimonials Clinical Efficiency Improved Quality Metrics Enhanced Practice Revenue Patient Education & Safety 49 49 APM INTEGRATION PTAC Meeting / April 10 11, 2017 1. ACS Brandeis Advanced APM (Surgeons) 2. Project Sonar (Chronic GI Conditions) APM (Gastroenterologists) 3. COPD & Asthma Monitoring (Pulmonologists) Race to Be In Place... Costs are not included in the core until 2020, but starting with data tracking from 2018 and 2019 as a baseline. 50 25

CRITICAL STEPS TOWARD APM Pathways to expanding reimbursement for Pharmacists clinical services (i.e., MTM ) into Quality Payment Program models AMEND MEDICARE LAW Add pharmacists to the Medicare Part B list of Eligible Providers INTERPROFESSIONAL COLLABORATION Increase the volume of collaboration with physicians to enhance nationwide demand INTEGRATION INTO BROADER APM MODELS Illustrate MTM s strong Return On Investment (ROI) Value and quality metrics in other APM proposals DESIGN AND PROMOTE MTM SPECIFIC APM Organize existing clinical and financial impact data on MTM and present to PTAC 51 Medication Therapy Management APM Next Steps... 1. Monitor early APM drafts & proposals 2. Organize evidence based data on the clinical and financial impact of Pharmacists interventions on patient care 3. Petition to present MTM APM model to the PTAC 52 26

Medication Therapy Management Practice Models & Management Daniel Buffington, PharmD, MBA American Institute of Pharmaceutical Sciences (AIPS) 6285 E. Fowler Ave, Tampa, FL, 33617 danbuffington@aips.net 813 983 1500 53 Question & Answer Darryl Drevna Director, Regulatory and Public Relations Policy AMGA Daniel Buffington, PharmD, MBA President American Institute of Pharmaceutical Sciences (AIPS) 54 27