Limits on savings from bundled payments identified in new research

• Multiyear savings are occurring in bundled payment but at lower rates than seen in a single year.
• The identified savings from hip and knee replacement bundles could allow those bundles to be spread across Medicare.
• Savings from bundled payments for other conditions may require design changes and more time.

As Medicare shifts increasing amounts of its spending into bundled payments, researchers are warning about dwindling savings and are calling for reforms to the programs.

Two studies published this week in Health Affairs examined savings from Medicare’s bundled payment programs: Acute Care Episode (ACE), Bundled Payments for Care Improvement (BPCI) and Comprehensive Care for Joint Replacement (CJR). The BPCI program has been replaced by the similar and ongoing...

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