How Medicare Successes Inform Medicaid Value-Based Care Progress

CMS has issued a letter to Medicaid directors regarding how states can accelerate their Medicaid value-based care adoption, based largely on lessons learned in CMS efforts toward value-based care in Medicare.

“The Trump Administration has long worked to accelerate the overdue move to value-based care, but for too long these efforts have been piecemeal,” said CMS Administrator Seema Verma in the press release.

“Our health care providers need Medicare, Medicaid and private insurance payers to work in tandem with one another, and I am calling on our state partners to use this guidance to develop a plan to improve quality for their Medicaid beneficiaries by advancing value-based care in their own programs.”

The 33-page document covers a broad spectrum of ways that states and payers can motivate value-based care growth, even within fee-for-service systems.

The agency identified value-based payment models as the primary cause of value-based care progress. According to CMS, there are six key ways in which states can move their Medicaid value-based payment initiatives forward more quickly, based on Medicare’s successes.

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