HHS increases Medicare payments tied to value

The Obama administration announced late last month that it expects to significantly raise the percentage of Medicare payments to doctors and other health providers that are tied to the quality of care delivered (“HHS Boosts Goals for Value-Driven Medical Care,” CQ Roll Call via Commonwealth Fund, Jan. 26, 2015).

The share of Medicare payments shifted to alternative spending models that reward coordinated care will rise from 20 percent of payments in 2014 to 30 percent in 2016, according to new targets released by the Department of Health and Human Services (HHS).

The targets are the first the government has set for the new spending models and track with goals of the ACA that aim to promote value-based care instead of pay doctors and hospitals for every test and treatment given to patients.