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Center for Medicare and Medicaid Innovation Must Implement Payment Reforms Rapidly

Author: Commonwealth Fund(i)

Published: 2010-06-08 : (Rev. 2019-07-02)

Synopsis and Key Points:

The new Center for Medicare and Medicaid Innovation (CMI) must be inclusive and flexible in developing and implementing payment initiatives.

Main Digest

Health Affairs article and Commonwealth Fund commission report detail strategies for success, including collaboration between public and private payers on pilots.

The new Center for Medicare and Medicaid Innovation (CMI) must be inclusive and flexible in developing and implementing payment initiatives, continuously monitor their impact, and rapidly disseminate them if they appear to be successful, in order to realize the potential for improved health care delivery and reduced spending, according to a new Health Affairs article by Commonwealth Fund researchers.

In "The Center for Medicare and Medicaid Innovation Will Be Central to Health Reform's Success," Stuart Guterman, Karen Davis, Kristof Stremikis, and Heather Drake lay out a series of recommendations for the CMI which, as described in the Affordable Care Act, is meant to develop innovative ways of providing and paying for health care that have the potential to reduce costs while preserving or enhancing health care quality.

The CMI, which will begin full-scale operations as part of the Centers for Medicare and Medicaid Services (CMS) in 2011, will be responsible for developing at least 18 reform models specified in the new law, including:

"Changing the way we pay for and provide health care to reward high-quality, efficient care is an essential step toward a high performance health system," said Commonwealth Fund President Karen Davis. "If health reform is to succeed in improving care and curbing spending, this new center must function like a research and development laboratory for health care delivery, designed to discover, support, and disseminate the best and most innovative ideas."

The Authors Recommend That the CMI:

A related report from The Commonwealth Fund Commission on a High Performance Health System was also released today.

Developing Innovative Payment Approaches:

The Path To High Performance describes several payment innovations that the CMI should introduce to reward more integrated care and achieve better quality and greater value, such as medical homes, accountable care organizations, and bundled payments.

Equally important to the success of theses strategies, the report says, will be the scope of the reforms.

The authors say that pilots should not be limited to Medicare but should include Medicaid and other public programs, and private payers, in order to magnify the effects of incentives across different payers, reduce administrative burdens, and address unwarranted variation among different payers.

"The new Innovation Center offers CMS an opportunity to be flexible in rapidly spreading promising new pilot programs," said Stuart Guterman, Assistant Vice President for the Commonwealth Fund's Program on Payment System Reform and lead author of both reports.

"By developing this center to be quick, responsive, and engaged, CMS can go a long way toward ensuring that the health care system sees the savings health care reform has the capacity to deliver."

The Commonwealth Fund is a private foundation supporting independent research on health policy reform and a high performance health system.

(i)Source/Reference: Commonwealth Fund. Disabled World makes no warranties or representations in connection therewith. Content may have been edited for style, clarity or length.

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