Affordable Care Act provision provides new opportunity for the use of Medicare 
and private sector claims data in evaluating the performance of physicians, 
other providers, and suppliers

On Friday, June 3rd, the Centers for Medicare & Medicaid Services (CMS) 
proposed rules that will enable consumers and employers to select 
higher-quality, lower-cost physicians, hospitals and other health care 
providers in their area. The new rules will allow organizations that meet 
certain qualifications access to patient-protected Medicare data to produce 
public reports on physicians, hospitals and other health care providers. These 
reports will combine private sector claims data with Medicare claims data to 
identify which hospitals and doctors provide the highest quality, 
cost-effective care. This initiative is part of a broader effort by the Obama 
Administration, made possible by the Affordable Care Act, to improve care and 
lower costs.

"Making more Medicare data available can make it easier for employers and 
consumers to make smart decisions about their health care," said CMS 
Administrator Donald M. Berwick, MD. "Performance reports that include Medicare 
data will result in higher quality and more cost effective care. And making our 
health care system more transparent promotes competition and drives costs down."

For many years employers, consumers, providers, and quality measurement 
organizations have been frustrated with the limited and piecemeal availability 
of health care claims data. This has led many health plans to create provider 
performance reports based solely on the health plan's own claims, which often 
represent only a small proportion of a provider's overall practice.  Providers 
can receive multiple, sometimes contradictory, reports from different insurers. 
 Often, providers are unable to appeal or correct what they perceive to be 
inaccurate results in these reports. These factors sometimes lead to reports 
that neither providers nor consumers feel they can use.

This rule seeks to change the quality measurement landscape in a way that 
increases transparency for all stakeholders. "Qualified entities" that have the 
capacity to process the data accurately and safely would be required to combine 
the Medicare claims provided by CMS with private sector claims data, to produce 
quality reports that are more representative of how providers and suppliers are 
performing. The reports will help employers and consumers understand more about 
the relative performance of physicians and other providers in their area. In 
addition, these rules include strict privacy and security requirements for 
entities handling Medicare claims data.

This new program would provide for the following activities:


*        CMS would provide standardized extracts of Medicare claims data from 
Parts A, B, and D to qualified entities.  The data can only be used to evaluate 
provider and supplier performance and to generate public reports detailing the 
results.

*        The data provided to the qualified entity will cover one or more 
specified geographic area(s).

*        The qualified entity would pay a fee that covers CMS' cost of making 
the data available.

*        To receive the Medicare claims data, qualified entities would need to 
have claims data from other sources.  Combining claims data from multiple 
sources creates a more complete and accurate picture about provider and 
supplier performance.

*        Publicly reporting the results calculated by the qualified entity is 
important for transparency in health care and consumer empowerment.  To prevent 
mistakes, qualified entities must share the reports confidentially with 
providers and suppliers prior to their public release.  This gives providers 
and suppliers an opportunity to review the reports and provide necessary 
corrections.

*        Publicly released reports would contain aggregated information only, 
meaning that no individual patient/beneficiary data would be shared or be 
available.

*        During the application process, qualified entities would need to 
demonstrate their capabilities to govern the access, use, and security of 
Medicare claims data.  Qualified entities would be subject to strict security 
and privacy processes.

*        CMS would continually monitor qualified entities, and entities that do 
not follow these procedures risk sanctions, including termination from the 
program.

Comments are welcome on this set of proposed rules.

These proposed rules are the next step in our effort to improve health care 
quality and ensure consumers have access to the best available information, 
using important new tools provided by the Affordable Care Act.  The Hospital 
Value-Based Purchasing initiative will reward hospitals for the quality of care 
they provide to people with Medicare and help reduce health care costs.  This 
initiative will be based on quality measures that hospitals have been reporting 
to the Hospital Inpatient Quality Reporting Program since 2004, and that 
information is posted on the Hospital 
Compare<http://links.govdelivery.com:80/track?type=click&enid=bWFpbGluZ2lkPTEzNzMyMzUmbWVzc2FnZWlkPVBSRC1CVUwtMTM3MzIzNSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY2MzU0OTAmZW1haWxpZD1qdWxpYW5uZS5tdWkyQGNtcy5oaHMuZ292JnVzZXJpZD1qdWxpYW5uZS5tdWkyQGNtcy5oaHMuZ292JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&101&&&http://www.healthcare.gov/compare/index.html>
 website.  The Partnership for Patients is bringing together hospitals, 
doctors, nurses, pharmacists, employers, unions, and state and federal 
government committed to keeping patients from getting injured or sicker in the 
health care system and improving transitions between care settings.  CMS will 
invest up to $1 billion to help drive these changes.  In addition, proposed 
rules allowing Medicare to pay new Accountable Care Organizations (ACOs) to 
improve coordination of patient care are also expected to result in better care 
and lower costs.  This proposed rule will complement the overall effort by the 
Obama Administration to improve quality, lower costs, and improve health by 
providing consumers and employers a more accurate picture of provider and 
supplier performance.

The proposed rule is on display at the Office of the Federal Register at 
http://www.archives.gov/federal-register/public-inspection/index.html .

"On June 8th, the date of actual "publication" in the Federal Register, the 
NPRM will no longer appear on the above line.  Rather, you'll need to access 
the Federal Register link for published rules:

http://www.gpoaccess.gov/fr/browse.html<http://links.govdelivery.com:80/track?type=click&enid=bWFpbGluZ2lkPTEzNzMyMzUmbWVzc2FnZWlkPVBSRC1CVUwtMTM3MzIzNSZkYXRhYmFzZWlkPTEwMDEmc2VyaWFsPTEyNzY2MzU0OTAmZW1haWxpZD1qdWxpYW5uZS5tdWkyQGNtcy5oaHMuZ292JnVzZXJpZD1qdWxpYW5uZS5tdWkyQGNtcy5oaHMuZ292JmZsPSZleHRyYT1NdWx0aXZhcmlhdGVJZD0mJiY=&&&103&&&http://www.gpoaccess.gov/fr/browse.html>
 .



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