×

How to Comment:

Tap the quote mark to comment on articles.

Mercer

Efforts to transform the current US health-care system fee-for-service payment model got a boost as HHS Secretary Sylvia Burwell announced plans to transform the way Medicare providers are paid. "For the first time, we’re going to set clear goals and establish a clear timeline for moving from volume to value in the Medicare system,” Burwell said. By 2018, Burwell wants 50% of Medicare payments to be based on quality—not quantity. Last fall, the National Scorecard on Payment Reform (representing 65% of commercially-insured lives in the U.S.) reported a dramatic shift in how health plans pay physicians and hospitals, with 40 percent of their payments now designed to encourage health care providers to deliver higher-quality and, in some cases, more affordable care. However, the current value payments are mostly reward-based, with no financial risk to the provider; only a very small percentage are shared-risk or bundled payment arrangements. Hospitals have been the most impacted by these arrangements. Adding Medicare to the mix will definitely help pick up the pace of this ongoing transformation.

Helpful
Not Helpful
Expand Story