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The Biden administration is exploring making more payment models mandatory in the future as it implements a more patient-centric vision for value-based care.
Center for Medicare and Medicaid Innovation (CMMI) Director Liz Fowler detailed parts of this vision on Thursday during an interview with Health Affairs Editor-in-Chief Alan Weil. Fowler said voluntary models come with major disadvantages that make it harder to generate health systemwide savings.
“What we have learned from CMMI models over the past 10 years is that voluntary models [are] subject to risk selection, which has a negative impact on the ability to generate system-level savings,” Fowler said.
She added that providers within a system who are not generating revenue in the model tend to exit the program and those doing well tend to stay.