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HHS Announces Dramatic Move Away from Traditional Fee-For-Service Medicare Payments

Posted on 1/27/2015 by NTOCC ® in Public Policy Updates

HHS announced yesterday that they are moving towards an alternative payment model for Medicare payments. In the new model, HHS has set a goal of tying 30 percent of traditional, fee-for-service Medicare payments to quality or value through alternative payment models, such as ACOs or bundled payment arrangements by the end of 2016. By the end of 2018, the goal is to tie 50 percent of payments to those models. In order to achieve these goals, Secretary Burwell also announced the creation of the Health Care Payment Learning and Action Network, in which HHS will work with private payers, employers, consumers, providers, states and state Medicaid programs, and other partners to expand alternative payment models into their programs. The Network will hold its first meeting in March of this year.

HHS also set a goal of tying 85 percent of all traditional Medicare payments to quality or value by 2016 and 90 percent by 2019 through programs such as the Hospital Value-Based Purchasing and the Hospital Readmissions Reduction programs. 

Link to the full announcement may be found here:  http://www.hhs.gov/news/press/2015pres/01/20150126a.html