Health Affairs May 22, 2024
Over the past several years, the Centers for Medicare and Medicaid Services (CMS) has reevaluated its approach to value-based payment models. Recent emphasis has been to expand population-based models, such as accountable care organizations (ACOs) and primary care programs.
However, it has been less clear how policy makers will advance episode-based payment models beyond ongoing programs. Episode-based bundled payment models have been successful in their own right, and greater engagement of specialists remains a major need—both for overall payment policy and to promote greater care delivery and incentive alignment with population-based models.
That policy direction is now clearer. Last month, CMS announced the Transforming Episode Accountability Model (TEAM), a new program that will begin in January 2026 after the conclusion...