CMMI’s geographic direct contracting model needs an overhaul, experts say

Consumer advocates, accountable care organizations and several experts think CMS’ Center for Medicare & Medicaid Innovation should delay its Geographic Direct Contracting model—dubbed “Geo”—until it resolves a number of issues that could create significant confusion among Medicare beneficiaries and operational and financial challenges for providers.

The model builds on the lessons learned from the Medicare Shared Savings Program, Next Generation ACO model, Medicare Advantage and other initiatives. It’s supposed to test whether a regional approach to care delivery and value-based payment can improve health and lower costs for fee-for-service Medicare beneficiaries throughout an entire geographic region. According to a Commonwealth Fund blog post, the “model will have the effect of enrolling Medicare beneficiaries into a managed care-like plan.”

“It is one of the most significant changes to the way Medicare beneficiaries receive healthcare since managed care was introduced into Medicare in the 1970s,” the group said.

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