What does MACRA stand for?

MACRA stands for the Medicare Access and CHIP Reauthorization Act. This act, implemented in April 2015, represents significant healthcare reform that impacts how Medicare reimburses healthcare providers. One of its primary objectives was to replace the outdated Sustainable Growth Rate (SGR) formula with a new system focused on quality care rather than quantity of services provided.

The act not only addresses Medicare payments but also includes provisions for the Children's Health Insurance Program (CHIP), which is a critical component of health coverage for children in low-income families. Additionally, MACRA established new payment models, such as the Merit-based Incentive Payment System (MIPS) and Advanced Alternative Payment Models (APMs), which incentivize healthcare providers to improve quality and efficiency in patient care.

In this context, understanding the correct definition of MACRA is essential for a healthcare practice manager because it influences reimbursement practices, quality assessment, and overall financial management within a medical practice.