Thirteen national health stakeholder groups today declared their support for a newly introduced bipartisan House bill that will accelerate Medicare’s move to value-based payment by boosting accountable care organizations and other alternative payment models.
Thirteen national health stakeholder groups today declared their support for a newly introduced bipartisan House bill that will accelerate Medicare’s move to value-based payment by boosting accountable care organizations (ACOs) and other alternative payment models (APMs). The Value in Health Care Act was filed today by Representatives Peter Welch, D-Vermont; Suzan DelBene, D-Washington; and Darin LaHood, R-Illinois.
The bill, called the Value Act for short, strengthens the Medicare Shared Savings Program (MSSP) by updating the program to recognize and reward ACOs. Specifically, the bill increases shared savings rates, updates risk adjustment rules, eliminates the artificial distinction between “high” and “low” revenue ACOs, addresses ACOs’ “rural glitch,” and restarts the ACO Investment Model. The bill also reinforces the shift to value-based care by extending the 5% Advanced APM bonus for an additional 6 years, modifying the threshold to achieve that 5% bonus, and authorizing a study of the overlap of various Medicare APMs.
“With estimates showing almost 40 percent of healthcare dollars are tied to value-based payment and goals to increase that percent moving forward, the value-based care movement is at a critical juncture,” stated a letter sent to the bill’s cosponsors by the 13 organizations. “The policies in this bipartisan bill are more important than ever given the acute needs of our nation’s health care system as we navigate the COVID-19 pandemic.”
The letter was signed by the American Academy of Family Physicians, American College of Physicians, American Hospital Association, American Medical Association, America’s Essential Hospitals, America’s Physician Groups, American Medigal Group Association, Association of American Medical Colleges, Federation of American Hospitals, Health Care Transformation Task Force, Medical Group Management Association, National Association of ACOs, and Premier.