HHS Announces Major Shift from Medicare Fee-for-Service Payment Model


On Monday, January 26 the US Department of Health and Human Services (HSS) announced that it plans to tie 30% of traditional Medicare fee-for-service payments to "quality or value" through what are known as "alternative payment models" by the end of 2016, up from 20%. These models include accountable care organizations, which are groups of doctors, hospitals and other health care providers responsible for the health of a group of patients.

The plans include "bundled payments," which are groups of payments for treatments for the same issue, such as an injury. By the end of 2018, HHS hopes to link 50% of payments to these arrangements. MORE