Six value-added payment approaches evaluated by CMS result in significant savings

The Centers for Medicare & Medicaid Services established the CMS Innovation Center to explore value-based arrangements to reduce program expenditures while preserving or enhancing the quality of care. Although research focuses on Medicare programs, the results ultimately could inform employer-sponsored strategies as well.

In the last decade, the center has launched more than 50 model tests, with approximately 33 models operational (either launched or continued). These model tests have studied potential improvements in health care payment and delivery for advanced primary care, episode-based care, accountable care, state-based transformation efforts, population health and health care for specific populations, such as Medicare beneficiaries with end-stage renal disease, diabetes and heart disease.

“Though many models have been tested, only a few have clearly emerged as successful at reducing costs and improving outcomes,” according to the center’s 2022 report to Congress. Six models led to statistically significant savings: