CMS Innovation Center spent $7.9B in 1 decade: 7 notes

The Congressional Budget Office estimated the CMS Innovation Center spent $7.9 billion from 2011 through 2020, a March 27 report from the Government Accountability Office said.

While some models have been expanded beyond testing, the Innovation Center has seen mixed results since it kicked off in fiscal 2011.

Here are seven notes from the report:

1. Congress authorized $20 billion for the Innovation Center, with two sets of $10 billion allocated at different times. The center committed to spending $11.4 billion from fiscal years 2011 through 2024. From fiscal years 2011 through 2020, the Innovation Center spent $7.9 billion.

2. In September 2023, the CBO determined the $7.9 billion that contributed to projects decreased spending by $2.6 billion, resulting in an increase of about $5.4 billion in federal spending. The efforts were initially projected to boost savings.

3. The CBO then projected the Innovation Center would increase federal spend by $1.3 billion from fiscal years 2021 through 2030.

4. In fiscal 2015, total annual obligations reached $1.3 billion, the highest amount for a single year. Obligations dropped by nearly 40% to $789 million in fiscal 2024.

5. CMS has tested 70 models, with 24 being assessed in January 2025.

6. Of the 24 models being tested as of January 2025, 22 had voluntary participation and two mandated participation.

7. Only four of the 70 models have endured beyond testing, either existing independently or being folded into other programs: the Pioneer ACO Model, the Medicare Diabetes Prevention Program, the Repetitive Scheduled Non-Emergent Ambulance Transport Model and the Home Health Value-Based Purchasing Model. Models are certified for expansion if they have a 90% to 95% likelihood of lowering federal spending. CMS has not yet expanded models based on quality improvements.

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