Medical Economics September 29, 2023
Report finds money spent on developing new payment programs exceeded savings from them
The agency formed to save money for Medicare by developing new payment models instead has been adding to the program’s costs.
A new Congressional Budget Office (CBO) report estimates that the Center for Medicare and Medicaid Innovation (CMMI), which was established as part of the 2010 Affordable Care Act (ACA), spent about $7.9 billion to develop and operate new payment models during its first decade of operation.
Those models reduced spending on health care benefits by $2.6 billion, resulting in $5.4 billion in increased direct spending, equivalent to about 0.1% of Medicare total spending. That increase contrasts with the CBO’s projection when the ACA was enacted that...