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Module 1. Overview and Definition of Medication Therapy Management (MTM)
This Module Contains:
- Importance/relevance of MTM
- Definitions and terms
- Rationale for MTM in patient care
- Pharmacist’s role (+ Video)
- Goals of MTM
- Evidence of MTM efficacy
- Basic steps
- What’s new in MTM?
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What’s New in this Update?
- 2022–23 updated terms and steps for MTM
- Listing of states with Test-to-Treat prescribing authority
- New feature: Video from MTM experts Demetra Antimisiaris and Tim Cutler on the growing importance of pharmacist MTM
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WHY MTM IS RELEVANT FOR PHARMACISTS NOW
Medication therapy management (MTM) is a service performed by pharmacists or other healthcare professionals which has growing relevance in healthcare delivery. Essentially, MTM is a system of reviewing an individual patient's medications to ensure that the overall medication regimen is optimized. This can be done in a targeted manner, focusing on a single drug or disease state—or ideally as part of a comprehensive approach that looks at all the medications a person is taking, in the context of overall health and lifestyle factors.
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CMS refers to MTM as the "cornerstone" of outpatient pharmacy clinical services, and remains committed to MTM as a quality improvement/cost-containment strategy.1, 2 CMS requires that all sponsors of Medicare Part D plans must establish an MTM program that:3, 4
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ensures covered Part D drugs are used to optimize therapeutic outcomes through improved medication use;
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reduces the risk of adverse events
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enhances cooperation between practicing pharmacists and physicians; and
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may be furnished by pharmacists or other qualified providers
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provides information about safe disposal of prescription drugs.
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Recent data provided by CMS confirm that pharmacists are the main providers of MTM services. According to the 2018 CMS Fact Sheet on MTM Programs, 100% of the existing Medicare Part D MTM programs use the services of pharmacists for MTM, and a large proportion employ pharmacy interns (students) or pharmacy technicians, as shown in Figure 1.5
Figure 1. Percent of 2019 MTM Medicare Part D Programs Using These Providers of MTM Services5 |
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Source: Centers for Medicare & Medicaid Services. 2019 Medicare Part D Medication Therapy Management
(MTM) Programs. Fact Sheet: Summary of 2019 MTM Programs. Sept 25, 2019. |
Pharmacists' roles as direct providers of healthcare services continue to expand in state legislatures and at many organizational levels.6 Collaborative practice agreements (CPAs) allow pharmacists to bill for MTM services provided to patients, and in some areas to prescribe or dispense medications without other oversight.7 MTM is not only an important part of Medicare, but is being phased in by many states as part of Medicaid as well.
MTM BACKGROUND AND DEFINITIONS
MTM became part of Medicare with the passage of the Medicare Prescription Drug Improvement and Modernization Act of 2003 (MMA 2003).8 This federal legislation introduced Medicare Part D, the first outpatient prescription drug benefit for patients receiving Medicare coverage. That legislation contained a mandate that certain Medicare Part D recipients with chronic illnesses should receive counseling (often provided by a pharmacist), in an effort to contain costs and help patients better manage the complex aspects of treating their medical conditions.9
MTM generally refers to a service between a pharmacist (or other health professional) and an individual (or caregiver) to ensure that the person's overall medication regimen is:9, 10
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appropriate for the patient
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effective for the medical condition(s)
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safe in view of comorbidities and other medications being taken
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being administered correctly, at the correct dose
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able to be taken by the patient as intended
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appropriately monitored
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communicated and understood among stakeholders (clinician, caregivers, patient)
The American College of Clinical Pharmacy (ACCP) defines MTM as:
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"A range of services provided to individual patients to optimize therapeutic outcomes (help patients get the most benefit from their medications) and detect and prevent costly medication problems."11
CMS offers the following definition:
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“A systematic process of collecting patient-specific information, assessing medication therapies to identify medication-related problems, developing a prioritized list of medication-related problems, and creating a plan to resolve them.”12
MTM TERMS: WHAT MTM IS AND IS NOT
MTM is not a new idea—nor are the concepts of medication management and counseling new to pharmacy practice. However, MTM became more formalized and widely accepted when it became part of Medicare. MTM programs are recognized as one way to help address some pervasive problems of the healthcare delivery system, including spiraling costs, medication errors, and nonadherence.13-15 MTM documents from CMS and other organizations recognize pharmacists as the among most qualified professionals for these services.5 New trends of partnerships between pharmacy organizations and hospitals, primary care providers, health plans, and employers suggest that MTM is in demand and that more pharmacists will need to be trained to deliver these services.
There may be some confusion about how MTM fits into clinical practice. Terms such as Comprehensive Medication Management (CMM) have been widely adopted by professional associations and government agencies and may be confused with MTM.16 Some similarities and differences are summarized in Figure 2.
Figure 2. MTM versus CMM |
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MTM can be performed in a variety of practice settings including the pharmacy, medical office, place of employment, or health plan. MTM does not require credentialing from payers or institutions and is not always done as part of a collaborative practice agreement (CPA). MTM does not require (but should include) a relationship with the patient's primary care provider.
Rationale for MTM services
The Medicare population is diverse, and includes patients over the age of 65 who qualify based on age and financial contributions while others can qualify at a younger age due to disability. As a result, pharmacists performing MTM must understand the underlying issues confronting this population, which include costly medications, multiple chronic diseases, and potential or actual adverse events.
The need for MTM and CMM services has grown steadily in conjunction with the nation's increasing reliance on prescription pharmaceuticals. Americans' spending on prescription medications has grown exponentially over the past 50 to 60 years. This is due to a number of factors, including the aging of the population, rising incidence of chronic diseases, improvements in medical advances, a greater variety of medications available to treat illness, and drug cost increases.17 By the end of 2020, total U.S. healthcare expenditures had climbed to $4.1 trillion or $12,530 per person.18 Annual per capita spending on prescription drugs was just $140 in 1980 and exceeded $1,073 in 2018 (Figure 3), with much of this spike attributed to costly specialty categories and newly introduced drugs (Figure 4).19
Chronic diseases account for more than 75% of healthcare costs and are a major driver of pharmaceutical costs. The Infographic portrays Centers for Disease Control and Prevention (CDC) data on the influence of chronic diseases in U.S. healthcare delivery.20, 21
People with chronic diseases have more doctor visits and more hospitalizations.22 Because these patients may consult multiple providers for different issues, healthcare delivery tends to be fragmented, often with poor communication between providers. This arises in part from the orientation of our healthcare delivery system as an acute care model, rather than a chronic care model.22 Poorly coordinated care may increase overall costs and hospitalization rates.23, 24
People aged 65 and older (those eligible for Medicare) are the highest consumers of prescription drugs. Medicare recipients who have multiple chronic illnesses:25
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see an average of 13 different physicians;
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account for 76 percent of all hospital admissions;
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are 100 times more likely to have a preventable hospitalization versus those with no chronic conditions.
The fastest-growing segment of the population is that of people over the age of 85. By the year 2050, more than 90 million Americans will be in this demographic.26 At the same time, health policy experts predict there will be a serious shortage of healthcare providers who are trained to work with geriatric populations.27
With polypharmacy comes a heightened risk of drug-related morbidity and mortality.28-31The annual costs of morbidity and mortality from medication complications and errors are increasing. These costs are likely to continue to increase as a greater proportion of the population reaches an advanced age. Pharmacist intervention through MTM can reduce medication-related morbidity and mortality related to polypharmacy. A U.S. Public Health Services-sponsored study showed that employing the services of a consultant pharmacist could reduce the costs of drug-related morbidity and mortality in older patients by $3.6 billion (from $7.6 billion to $4 billion).29
WHY PHARMACISTS?
Are pharmacists considered to be "providers" by CMS?
The CMS Medicare Part D program continues to validate pharmacists as valued members of the patient care team. Prescription drug plans are required to offer MTM services, most of which are delivered pharmacists. The Medicare Modernization Act (MMA) did not go so far as to formally name pharmacists as "providers"—and thus able to receive payments for services directly from Medicare.32 However, it does allow pharmacists to bill MTM sponsors (through a third-party or directly to insurance organizations) for MTM services under three different CPT codes. On a federal level, pharmacists are not recognized as providers. The Pharmacy and Medically Underserved Areas Enhancement Act (H.R. 2759/S. 1362) was introduced in the U.S. House of Representatives and the U.S. Senate in April 2021 and is awaiting further action. In medically underserved communities, this bill would add pharmacists to the list of providers whose patient care services are covered by Medicare Part B (i.e., granting them “provider status”). The legislation would ensure that pharmacists are compensated for the patient care provided to beneficiaries who struggle to access basic health care services.33
Most states have passed or are considering legislation that recognizes pharmacists as healthcare providers. States that offer MTM programs as part of Medicaid may provide payments directly to pharmacists.34
The battle for pharmacist provider status continues to wage at the state and federal level. This movement is exemplified by test-to-treat direct prescribing legislation been passed in some states (Table 1), leveraging the community embeddedness of pharmacist to provide efficient access to time-sensitive care (e.g., oral antiviral therapies for COVID-19 or influenza). Some protocols are statewide, and direct access, and some are delegated prescribing authority. Some states require additional competency training, so while pharmacists are well qualified to be medication managers, prescribing privileges come with responsibility for ongoing education and competency assurance.
Table 1. Pharmacist “Test and Treat” Prescribing Authority, By State
Updated July 2022
Direct Prescribing Authority |
Arkansas (2021) |
Can treat, via statewide protocol, health conditions that can be screened utilizing CLIA-waived tests |
Colorado (2021) |
Can prescribe drugs for conditions that have a test used to guide diagnosis or clinical decision-making and is CLIA-waived |
Idaho (2018) |
Can prescribe drugs for conditions that have a test used to guide diagnosis or clinical decision-making and is CLIA-waived |
Iowa (2021) |
Can prescribe, via statewide protocol, tests and treatment for flu, strep, and COVID |
Kansas (2022) |
Can initiate treatment, via statewide protocol, for flu, strep, and UTI |
Delegated Prescribing Authority (CPA) |
Florida (2020) |
Allows pharmacists test and treat for minor, nonchronic conditions (including strep and flu) under a protocol with a physician. Because the protocol requires a physician’s signature, it functions more as a CPA than a statewide protocol. |
Kentucky (2019) |
Allows pharmacists to use board-approved protocols to test and treat for flu, strep, UTI, and other conditions. Because all of the protocols require a physician’s signature, they function more like CPAs than statewide protocols. |
Idaho, Illinois, Michigan, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, Tennessee, Utah, Vermont, Washington, Wisconsin |
CPA authority broad enough to allow pharmacists to prescribe pursuant to a rapid diagnostic test |
CLIA=Clinical Laboratory Improvement Amendments; CPA=collaborative practice agreements
Source: National Alliance of State Pharmacy Associations (NASPA). Pharmacist Prescribing: “Test and Treat.” Updated July 10. 2022. |
The services that fall under MTM are well suited for a pharmacist's skill set, training, and approach to practice. Pharmacists have specialized training in areas that relate directly to MTM services, including:
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Managing multiple medications and combination therapies;
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Use of newer and specialized agents such as biologics;
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Dose preparation and administration of injectable medications and devices;
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Managing and monitoring for adverse effects and safety issues; and
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Addressing patient adherence problems.
A 2014 report sponsored by 6 large pharmacist professional organizations on pharmacists' roles in the changing healthcare environment (Table 2) stated:35
"Historically, pharmacists' role in healthcare centered around dispensing medications…although they receive training in preventive care, health and wellness, and patient education, pharmacists have traditionally leveraged their clinical knowledge to review prescribed drug regimens to prevent inappropriate dosing and minimize drug interactions. Pharmacists' roles have expanded over time to include more direct patient care…and their roles continue to evolve today."
Table 2. Exploring the Role of Pharmacist Services35 |
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Because accountable care organizations manage the entirety of care, they may look to integrate pharmacist-provided MTM to improve adherence and clinical outcomes while potentially reducing costs.
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Pharmacist-provided medication reconciliation can help reduce medication discrepancies and may be an important component of improving transitions of care moving forward.
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Comprehensive transitions of care programs that utilize pharmacist-provided medication reconciliation will be especially important in the post-hospital discharge setting for patients at risk for hospitalization.
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Payers and policymakers should explore ways to leverage pharmacists' accessibility in the community to provide preventive care services.
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Pharmacists are effective in delivering immunization and screening services
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Pharmacist-provided educational and behavioral counseling can contribute to better outcomes in chronic illness and support wellness in the population.
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Collaborative care models that include a pharmacist can help alleviate some of the demand on physician-provided care.
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Adapted from: Exploring Pharmacists' Role in a Changing Healthcare Environment. Avalere Health. May 2014.35 |
OVERALL GOALS OF MTM
The groundwork has now been laid on how MTM evolved, why it is needed, and why pharmacists are ideally suited to provide MTM. The remainder of this introductory module will look at the goals and objectives of MTM, a brief review of the key components of MTM (which are covered in-depth in the following modules), and projecting the future of MTM services.
How is MTM different from other pharmacist services?
Fundamentally, MTM differs from other patient counseling services provided by pharmacists in that it is patient-centered, rather than product-centered, as summarized in Table 3. With most pharmacy services, counseling commences when a patient brings in a prescription or refills a prescription, so the conversation focuses on the particular agent. MTM usually a considerably more comprehensive approach, focusing on the patient's disease state and complete healthcare regimen. It examines what medications the patient is currently taking, as well as what treatments might have been overlooked.
Table 3. Summary of MTM Goals |
Philosophy |
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Patient-centered rather than product-centered
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Focuses on overall regimen rather than individual medication
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Collaboration among pharmacists and other healthcare providers
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Outcomes |
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Increase patients' understanding and self-management skills
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Improve patient adherence, thereby enhancing efficacy of medications
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Increase adherence to CMS quality performance standards
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Goals |
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Mutual goals for pharmacy organizations, patients, and payers
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Reduce preventable adverse events and associated costs
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Reduce medication-related morbidity and mortality
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Reduce healthcare costs due to duplicate or unnecessary prescriptions
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What evidence do we have that MTM works?
A number of recent studies have demonstrated a positive impact of MTM interventions in terms of improving patient care and reducing healthcare costs.36-39 Evidence-based studies have shown pharmacist interventions to have an impact on health outcomes such as:
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Increased access to services for medically underserved, vulnerable populations
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Improved patient safety
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Alleviated physician burden for health education and counseling
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Adding check/balance system for prescribers to prevent prescribing errors
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Improve patient and provider satisfaction
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Enhance cost-effectiveness
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Improved goal achievement for chronic diseases
Continually, research is aimed at measuring and quantifying the real-world beneficial effects of pharmacists' care. Table 4 summarizes benefits identified from some of the classic studies of pharmacist intervention on health outcomes for patients with chronic diseases including heart failure, diabetes, hypertension, and dyslipidemia.11,35-42
Table 4. Positive Health Outcomes of Pharmacist Interventions: Evidence from Systematic Reviews and Meta-Analyses
Disease state/condition |
# patients (# studies)
Source |
Outcome/effect of pharmacist intervention |
Diabetes |
2,247 (16)40 |
Significantly reduced Hb A1c levels |
Diabetes (10-City Challenge) |
573 (1 multicenter)41 |
Influenza vaccination rate doubled; eye and foot examination rates increased |
Diabetes (Asheville Project) |
12 community pharmacies followed 5 years42 |
Significantly reduced mean Hb A1c; increased % of patients with optimal A1c; improved lipid levels; decreased costs of care; decreased sick days |
Diabetes (poorly controlled) |
Retrospective review of 100 patient records43 |
Patients with pharmacist-directed MTM had higher rates of medication adherence and lower Hb A1C levels than the non-MTM group. |
Hypertension |
2,246 (13)44 |
Significantly reduced systolic BP |
Hypertension, dyslipidemia |
285 (Minnesota MTM Program)45 |
637 drug therapy problems resolved (in 285 patients); HEDIS measures improved for hypertension and cholesterol |
Congestive heart failure |
2060 (12)46 |
Reduced all-cause and heart-failure related hospitalizations |
Patient safety |
298 studies47 |
Significantly fewer adverse drug events; significantly improved adherence, patient knowledge, quality of life |
Primary care clinics |
38 studies (mostly cardiovascular and diabetes)48 |
Pharmacist interventions in primary care resulted in improvements in blood pressure, glycosylated hemoglobin, cholesterol, CVD risk factors |
Hb A1c=hemoglobin A1c; BP=blood pressure; LDL=low-density lipoprotein |
It is worth noting that easily measurable outcomes (such as lowering blood pressure or dyslipidemia) are more readily shown to have an impact from MTM services, although other outcomes may have as much impact on individual patients (e.g., eliminating unnecessary medications or reducing adverse effects). A systematic review published in 2022 sought to compare clinical outcomes of pharmacist-provided MTM versus no MTM (i.e., standard of care) for patients with diabetes, hypertension, or dyslipidemia.49 The study analyzed all relevant published reports between 205 and 2021 (n=849) and included 8 in the analysis. The results across studies demonstrated that pharmacist-delivered MTM improved clinical outcomes for patients with diabetes, hypertension, and dyslipidemia versus no MTM services.49
IMPLEMENTING AN MTM SERVICE
How pharmacists implement MTM services will depend mainly on the practice format, the scope of MTM (whether serving mainly Medicare Part D recipients, or reaching a broader target patient group), and the reimbursement structure for these services. MTM services can apply to virtually any patient, in any practice setting.50 The way MTM services are provided is rapidly evolving—at one time, pharmacists could only provide MTM within a contracted organization. Now, pharmacists may provide MTM as staff pharmacists, independent contractors, or as part of an interdisciplinary team (such as a patient-centered medical home).
Issues the pharmacist might consider when planning for a new MTM service are summarized in Table 5.
How might MTM services affect workload? |
- Time, workflow challenges
- Administrative requirements
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What patient populations will be targeted? |
- How will patients be recruited?
- How will we address the potential problem of too few referrals?
- How will issues such as language/cultural barriers be addressed?
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What methods will be used to communicate with payers, physicians, and health systems about MTM? |
- Most Medicare MTM pharmacists use fax or phone to communicate results to physicians
- 100% mail MTM summary to patient
- Other methods include hand-deliver, email, fax, web portal access
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Is there a need to create a space or find a space for face-to-face MTM consults? |
- Nearly all Medicare MTM programs perform phone MTM consult
- 90% offer in person MTM consult
- 74% offer telehealth MTM consult
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How will we document effects and impact of MTM in the practice? |
- Pharmacist time spent
- Changes in patients' medications, outcomes
- Other impact on pharmacy practice
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What compensation systems will be used in our MTM service? |
- See Video in this module for discussion of reimbursement
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Patient selection for MTM
Patients who are enrolled in Medicare Part D will be invited by the Medicare Part D sponsor to participate in MTM if they have at least 2 conditions from the chronic disease states listed below (some sponsors require 3 or more). Other patients may receive MTM services at the request of their physician, through their employer, at the invitation of the pharmacist, or by self-referral. The next Modules in this program defines the Medicare criteria more thoroughly and contains a comprehensive discussion about how to identify patients for MTM.
OVERVIEW OF MTM BASIC STEPS
The flowchart in Figure 5 diagrams the basic steps involved in MTM. For patients receiving Medicare Part D , the first MTM encounter involves the Comprehensive Medication Review (CMR) and subsequent quarterly follow-up services including Targeted Medication Reviews (TMR), which focus in on the problems identified in the initial comprehensive MTM intervention. More detail on how to conduct each of these steps, in turn, is provided in the subsequent Modules in this program. In the clinical sections of this program, MTM services applicable to that the core disease states are explained using case examples.
Figure 5. Medication Therapy Management Flowchart |
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Source: Marilyn Stebbins, PharmD |
WHAT'S NEW IN MTM?
This section discusses some areas of change affecting MTM now and likely to continue in the coming years.
Role in STAR Ratings, used by CMS to determine payments to health plans
Medicare Star Ratings measure quality and performance, with plans receiving a star rating for each category and for individual measures within the category (ranging from 1 Star for poor performance to 5 Stars for excellent performance). CMS offers quality bonus payments for plans with higher Star rankings.
For example, Star Ratings for diabetes are based on the percentage of members with diabetes who have had services such as eye exams to check for diabetes complications, kidney disease monitoring, and HbA1c targets met.
STAR Ratings for used to be based on whether or not Medicare Part D sponsor had performed MTM. Now, the outcomes of MTM carry more weight as part of the Star Rating. This means health plans have an added financial incentive for pharmacists to perform MTM effectively in a way that benefits patient outcomes.51
The current STAR Ratings Fact Sheet reports an increasing trend in STAR rating scores for MTM related services in 2020, compared with prior years.52 This trend reflects increasing awareness on the part of Medicare plan sponsors that MTM is a major component of achieving high quality measure outcomes. Sponsors with more experience providing MTM services show higher scores (more likely to have 4-plus stars if they have 10 or more years in the program) indicating the importance of quality and expert provision of MTM services by the individual provider.52 This suggests a growing opportunity for pharmacists to support sponsors in increasing the STAR rating in order to gain higher reimbursements and expand enrollees.
Quality Reporting Systems (PQRS)
Programs in which reimbursement for healthcare services is provided on a capitation basis—rather than a fee for service basis—will greatly increase the need for quality MTM. For example, under Medicare some hospitals do not receive reimbursement if a patient is rehospitalized for certain conditions, which increasing the demand for improved post-discharge management. In the patient-centered medical home model, payers contract with a healthcare organization to cover a certain number of patients ("covered lives") on a per-patient basis, creating an incentive for efficient healthcare cost savings that can be gained through MTM. Physician Quality Reporting System (PQRS) measures provide standards that must be met in order for physicians to avoid penalties through Medicare. Programs of this nature create more opportunities for pharmacists to get involved in collaborative practice in an effort to improve quality and outcomes in patient care.
CONCLUSION
This is an ideal time for pharmacists who are not already engaging in MTM to begin the study needed for MTM practice. New opportunities for pharmacists include Patient-Centered Medical Homes, dedicated patient education programs run by pharmacists in hospitals, and the creation of employer-sponsored MTM and wellness plans. In addition, health plans and MTM third-party organizations hire pharmacists trained in MTM to perform these services for their membership.
Changes in legislature may continue to expand MTM reimbursement options available to pharmacists. Pharmacists who are well versed in the principles of MTM and detailed steps across a variety of clinical areas will be in a good position to meet the needs of a changing health system landscape.
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