The Physician Quality Reporting System (formerly PQRI) is a program developed by the Centers for Medicare and Medicaid Services (CMS) to provide a financial incentive to physicians who volunteer to report on best-practice quality measures for the Medicare patients they treat. PQRS, which is a reporting exercise at this time and not a performance exercise, has been incorporated into the Patient Protection and Affordable Care Act.

The law calls for the incentive program associated with PQRS to continue through 2014. This year, the incentive payment is 0.5 percent, which will continue through 2014.

Beginning in 2011, physicians were able to participate in the Physician Quality Reporting System through a continuous assessment program, such as the American Board of Dermatology's Maintenance of Certification (MOC) program. Dermatology practices that use this new method of PQRS reporting between 2011 and 2014 will be eligible for an additional 0.5 percent incentive payment.

Starting in 2015, there will be a 1.5 percent penalty for those eligible professionals (EPs) who do not participate in the program. The Patient Protection and Affordable Care Act will continue to offer incentives for participation through 2014.  However, an eligible professional will have to report for the 2013 reporting period to avoid the penalty in 2015, and in 2014 to avoid the penalty in 2016. 

Quality reporting incentives and penalties by year

Additional physician quality reporting system resources

• An in-depth explanation of the PQRS program.
• The Academy's QRS tool that helps with reporting.