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MedPAC: Overhaul MA payments and streamline CMMI models

MedPAC: Overhaul MA payments and streamline CMMI models

June 16, 2021Rebecca PiferNo CommentsHealthcare DiveMedicare ACOs/MSSP,Alternative payment models (APMs)

Two influential advisory groups sent recommendations to Congress calling for a revamp of how health plans are paid in the lucrative Medicare Advantage program, culling how many models CMS tests and curbing high-cost drug approvals.

By many measures, the MA program has been thriving. Enrollment and participation has continued to grow, and in 2021, MA plans’ bids to provide the Medicare benefit declined to a record low: Just 87% of comparable fee-for-service spending in their markets.

But despite that relative efficiency, MA contracting isn’t saving Medicare money — actually, in the 35 years Medicare managed care has been active, it’s never resulted in net savings for the cash-strapped program, James Mathews, executive director of the Medicare Payment Advisory Commission, told reporters in a Tuesday briefing.

Full Article

: CMMI, FFS, high-cost drugs, MA, MACPAC, Medicare, Medicare Advantage, MedPAC

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