The Merit-based Incentive Payment System (MIPS) is CMS's performance-based payment model for eligible clinicians under Medicare Part B. Depending on your composite score, MIPS will either increase, decrease, or leave unchanged your Medicare reimbursement for a given payment year. For most independent practices, the difference between a strong MIPS score and a poor one is worth thousands of dollars per physician annually.
Important: MIPS performance in 2025 affects your Medicare payment adjustment in 2027. The program works on a two-year lag.
The Four MIPS Performance Categories
Your final MIPS composite score is calculated across four weighted performance categories:
- Quality (30% weight) — performance on 6 clinical quality measures relevant to your specialty
- Cost (30% weight) — Medicare spending on your attributed patients relative to peers
- Promoting Interoperability (25% weight) — use of certified EHR technology and health information exchange
- Improvement Activities (15% weight) — engagement in practice improvement initiatives
Quality Category: Choosing the Right Measures
The Quality category requires you to report on six measures, including at least one outcome measure (or a high-priority measure if no outcome measure applies to your specialty). CMS publishes the full measure specifications annually, but you should not simply choose the easiest measures — you need to choose measures where your practice can perform at or above the national benchmarks.
Every quality measure is scored against a benchmark derived from historical national performance data. If your denominator is too small (typically fewer than 20 patients in a measure), that measure may be excluded from scoring. Work with your billing or quality reporting partner to model out your expected performance before the reporting year begins — not after.
Specialty-Specific Measure Sets
CMS maintains specialty-specific measure sets to help clinicians identify measures that are clinically relevant to their patient population. Reporting measures outside your specialty does not automatically improve your score — payers look at whether your reported denominator is clinically meaningful.
Promoting Interoperability: Common Pitfalls
The Promoting Interoperability (PI) category is where many practices lose easy points. PI requires the use of 2015 Edition CEHRT (Certified EHR Technology) and documentation of specific health IT activities like e-prescribing, health information exchange, and patient engagement through a patient portal.
- Ensure your EHR is certified as 2015 Edition CEHRT before the reporting period ends
- Activate and document patient portal usage — many practices have portals but never enable them
- Report the Security Risk Analysis measure — it is a required element and failure to attest results in a score of zero for the entire PI category
- Document electronic prescribing activity, including for controlled substances if your state allows
Improvement Activities: The Easiest Category
Improvement Activities is typically the easiest category to maximize. You need to attest to completing improvement activities worth a total of 40 points (or fewer, if you receive a weight multiplier as a small practice or rural provider). Activities are classified as high-weight (20 points) or medium-weight (10 points).
Common activities that satisfy this category include care coordination, shared decision-making, patient safety programs, telehealth expansion, and PCMH certification. Many practices are already doing these things — they simply are not documenting them in a way that supports MIPS attestation.
Cost Category: What You Can and Cannot Control
The Cost category is calculated by CMS directly from claims data — you do not submit anything for it. CMS measures your attributed Medicare beneficiaries' spending on two primary cost measures and any applicable procedure-level or condition-specific measures.
While you cannot directly control your cost score in the same way you can optimize quality reporting, you can influence it through better care coordination, reducing unnecessary testing and referrals, and managing avoidable readmissions.
MIPS is a marathon, not a sprint. Practices that plan their measure selection and data collection strategy before the performance year begins consistently outperform those that report reactively.
— MedVersify MIPS Consulting Team
Submitting Your MIPS Data
MIPS data can be submitted through several channels: directly through the CMS Quality Payment Program portal, through a qualified registry, through your EHR vendor, or via a Qualified Clinical Data Registry (QCDR). The deadline for submitting performance year data is typically March 31 of the following year.
If you are working with a billing or MIPS consulting partner, confirm early in Q4 which submission method they will use and what data you are responsible for providing. Missed deadlines result in automatic payment penalties — CMS does not grant extensions.