March 5, 2015

HHS Announces Plan to Further Link Between Reimbursement and Quality

This week, the Department of Health and Human Services (HHS) announced plans  to shift 30 percent of traditional Medicare fee-for-service reimbursement to alternative payment models such as accountable care organizations or bundled payments by the end of 2016 and tying 50 percent of payments to these models by the end of 2018. Currently, about 20 percent of Medicare payments are made through such models. In addition, HHS has set a goal to tie 85 percent of all traditional Medicare payments to quality or value by 2016 and 90 percent by 2018 through programs such as the Hospital Value-Based Purchasing and the Hospital Readmissions Reduction Programs.

In addition, 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. For more information, contact  Kathy Reep , vice president of finance, or  Kim Streit , vice president of healthcare research and information, at (407) 841-6230.