CMS innovation center did not save money in its 1st decade: CBO

The CMS innovation center tasked with creating innovative payment models cost the government more money than it saved in its first decade, a report from the Congressional Budget Office found. 

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The Center for Medicare and Medicaid Innovation was established by the ACA in 2010. The program develops and implements value-based payment models for Medicare and Medicaid. 

The CBO’s report, published Sept. 28, found that from 2011 to 2020, the CMMI increased federal spending by $5.4 billion, around 0.1 of net Medicare spending. According to the report, the center spent $7.9 billion to operate new models, and saved $2.6 billion from these models. 

The CBO estimated the innovation center will increase federal spending by $1.3 billion from 2021 to 2030. 

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