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Physician Quality Reporting System

The Tax Relief and Health Care Act of 2006 authorized the creation of the Centers for Medicare & Medicaid Services (CMS) Physician Quality Reporting System (PQRS). This program offers an incentive payment for eligible professionals (EPs) who satisfactorily report data on quality measures. EPs can use participation in the PQRS program to improve the care of patients through evidence-based measures based on clinical guidelines.

The PQRS program will eventually be aligned with the CMS EHR (Meaningful Use) Incentive program by the year 2013. PQRS affords eligible professionals opportunities for incentives through 2014 based on the EP’s Medicare Physician Fee Schedule (MPFS) allowable charges. Penalties will occur for non-participation starting with the year 2015.

Incentives and adjustments for PQRS are based on MPFS allowable charges for the particular calendar year:

2012 2013 2014 2015 2016 and beyond
+0.5% MPFS +0.5% MPFS +0.5% MPFS -1.5% MPFS -2.0% MPFS


FMQAI will work with EPs to improve the quality and frequency of preventive health care services to optimize beneficiaries’ quality of life and health care efficiencies. Consistent with national healthcare goals to expand EHR use and functionality, CMS is encouraging EPs to begin reporting to the PQRS program using the EHR method (as opposed to claims or registry method). FMQAI will provide educational tools and technical assistance to EPs who report to the PQRS program using the EHR method.

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