Medicare Advantage plans lead the way for alternative payment models

A majority of Medicare Advantage plans use some kind of alternative payment model, a survey from the Healthcare Payment Learning and Action Network found. 

The  study, published Nov. 9, surveyed 63 health plans, five state Medicaid programs and traditional Medicare on their payment models. The survey respondents make up around 77 percent of the national insurance market. 

Across the board, the survey found 40.5 percent of plans use traditional fee-for-service payments. 

Medicare Advantage plans were the most likely to use alternative payment models, with 57 percent using some kind of alternative payment. Of these plans, 35 percent used a risk-based model. 

Commercial plans were the least likely to use alternative payment models. The report found around 35 percent use alternative payments, and 13 percent use risk-based models. 

The survey is supported by AHIP and the Blue Cross Blue Shield Association. 

In a statement, AHIP President Matt Eyles said value-based payments allow providers to share "both the risk and rewards" of payments. 

"These findings support what we have heard from our members, particularly over the last three years: Value-based payment models are not only good for patients, they are good for clinicians, hospitals and healthcare systems by supporting these partners through greater financial predictability, stability and flexibility even in the most dire health crises," Mr. Eyles said.

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