Dollar bills

The results are out: 3% winners and 97% losers in the first go around on Medicare bonuses for the Value-Based Payment Modifier (VBM) program in 2014. No one knew what exactly to expect when the instituted the VBM program but no one expected these lopsided results and clearly now it appears these results are like a lottery.

Medicare reimbursement rates in 2016 will go up by either 16% or 32% for 4273 physicians in 128 group practices that performed well in the Value-Based Payment Modifier (VBM) program in 2014, the Centers for Medicare & Medicaid Services (CMS) announced March 7.The VBM bonuses will amount to an estimated $79.5 million in higher revenue.

In a zero-sum game of Medicare reimbursement, these bonuses are being funded by 141,382 physicians in 5477 group practices hit this year with VBM penalties also totalling $79.5 million.

Source: Medicare Penalties for 5477 Groups Fund Bonuses for 128