CMS Announces Automatic MIPS Exemption for Providers Affected by Natural Disasters

CMS announced it will allow automatic exemption from the 2025 Merit-based Incentive Payment System (MIPS) for providers located in certain Texas and California counties affected by natural disasters earlier this year. Detailed eligibility information is available in CMS’ online automatic exemption fact sheet.

The MIPS program scores physicians on four performance categories: quality, improvement activities, promoting interoperability and cost. Scores range from 0 to 100; scores less than 75 result in a negative adjustment to CMS reimbursements. MIPS-eligible clinicians who receive an automatic exemption will be given a neutral payment adjustment for the 2025 performance year.

CMS applies automatic exemption to providers in the affected areas only if no data is submitted for the current MIPS year. Providers that elect to submit quality measures, improvement activities or promoting interoperability measures waive the automatic exemption and receive a score and payment adjustment for 2025 MIPS reporting.

If you have questions about the 2025 MIPS performance year or the automatic exemption policy, contact Zach Smith, ACR Senior Quality Programs Specialist.