CHA News Article

HHS Announces Plan to Expand Alternative Payment Models, Tie Reimbursement to Quality

The U.S. Department of Health and Human Services (HHS) announced today a plan for shifting 30 percent of traditional Medicare fee-for-service reimbursements to alternative payment models − such as accountable care organizations (ACOs) or bundled payment arrangements − by 2016, and to 50 percent by the end of 2018. Acknowledging that not all providers will be able to participate in ACOs or other alternative payment models, HHS also announced it will seek to link 90 percent of all fee-for-service payments to quality metrics through programs such as hospital value-based purchasing by 2018. Some of the changes would require congressional action prior to implementation.

Additionally, HHS announced the creation of the Health Care Payment Learning and Action Network, which will work with private payers, employers, consumers, providers, states and state Medicaid programs, and other partners to expand alternative payment models into their programs. A fact sheet detailing the agency’s plan for the transition is available on the Centers for Medicare & Medicaid Services website. CHA will actively engage with HHS and other national association partners in helping to shape the CMS policy that will implement these goals.