Posted on March 4, 2016

CMS Announces Milestone in Payment Reform

CMS announced that 30 percent of their Medicare payments were part of alternative payment models - an issue that NEHI has been working on for many years.

Yesterday, the Centers for Medicaid & Medicare Services (CMS) announced that it had reached a milestone of tying 30 percent of its Medicare payments to quality. This milestone is an effort from the country’s largest payer – CMS – to switch from paying for volume (fee-for-service) to paying for value (total cost-of-care, quality metrics, etc.). The shift to alternative payment models (e.g. accountable care organizations (ACOs), advanced primary care medical homes, bundled payments) is ahead of schedule, which only points towards the moment towards a focus on value and quality of care.

NEHI has been convening cross-sector stakeholders over the past few years on these issues to identify where new payment models are successful and where they may need to change in order to advance innovations.

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