CMS proposes rule as part of the PPACA
Using both Medicare and private sector claims data, the Centers for Medicare and Medicaid Services (CMS) have proposed a system for evaluating the cost of practices versus performance. This new rule is authorized under the Patient Protection and Affordable Care Act (PPACA) and intends to curb rising health care costs by providing greater transparency to the market.
The program would appoint “qualified entities” which would have the authority to monitor claims data while being responsible for possibly sensitive patient health information. The “qualified entities” would process claims data from both Medicare and private insurance providers in order to show what practices are charging (on average) for certain procedures. Using this data, the “qualified entities” would create reports comparing different prices to different outcomes for each provider, which would be made available to the public.
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