Update On The Medicare Value-Based Care Strategy: Alignment, Growth, Equity

Medicare is responsible for more than one in five dollars spent on health care in the United States. Given its size and mission, Medicare programs and policies have a major role in transitioning the health care system away from fee-for-service payment, which incentivizes the quantity of care, and toward value-based payment, which incentivizes higher-quality care and more efficient spending. In July 2022, in Health Affairs Forefront, the Centers for Medicare and Medicaid Services (CMS) articulated our overall Medicare value-based care strategy of alignment, growth, and equity. Since then, CMS has promulgated several final rules for both traditional Medicare and Medicare Advantage (MA), announced new alternative payment models, and is considering future potential policies with multipayer alignment, growth of accountable care, and promotion of equity in mind.