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CMMI’s Latest Payment Models Address Health Disparities, but Challenges Remain

CMMI’s Latest Payment Models Address Health Disparities, but Challenges Remain

September 22, 2024Giuliana GrossiAJMCAlternative payment models (APMs),Health Equity,CMS, CMMI, Government, Policy & Regulations

The federal government has been increasing efforts to tackle health care disparities by linking payment models with social determinants of health.1 In July, The Center for Medicare and Medicaid Innovation (CMMI) announced a new area-level Accountable Care Organization Realizing Equity, Access, and Community Health (ACO REACH) measure for program year (PY) 2025, replacing the PY2024 blended national/state Area Deprivation Index (ADI).

CMMI has introduced several models over the past few years to address health disparities; the ACO model adjusts funding based on the social needs of patients. Although these changes offer promise, the latest adjustments reflect a complex landscape where some regions benefit more than others, according to a recent evaluation published in JAMA Health Forum, which calls for ongoing refinement in policy design.

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